TDS on Rent 195 Or 194IB


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Quick Summary
This discussion clarifies the correct section for deducting Tax Deducted at Source (TDS) on rent paid by an Indian company for a property located in Delhi, when the owner resides in Dubai. The key factor is the owner's residential status. If the property owner is a Non-Resident Indian (NRI), TDS should be deducted under Section 195 of the Income Tax Act at a rate of 30%, not Section 194IB.

25 July 2022 If a India company taken a property in rent in Delhi but property owner raised bill from Dubai and given PAN which was registered in India and bank account also in India,

So TDS Deduct u/s 194IB or u/s 195

25 July 2022 Check the residential status of the owner.
If non resident, TDS u/s. 195 should be deducted.

26 July 2022 Residential status of the Landlord-NRI
TDS Deduct for which section and TDS Rate

26 July 2022 TDS to be deducted u/s. 195 of IT act.. Rate specified is 30%.


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