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,