TDS on Rent - Rent paid to NRI
This query is : Resolved
06 August 2020
Dear Sir,
One of my client is a Salaried person and a Resident of India. He has paid rent of Rs. 50,000/- per month in FY. 2019-20.
The owner of the property to whom my client is paying rent is an NRI person. But my client didn't deduct any tds while paying rent in F.Y. 2019-20.
Now my clients wants to pay the entire TDS amount. I want to know what is the rate at which he has to deduct tds and how much penalty he has to pay now since he has not deducted and paid tds every month.
Please help me regarding the provisions applicable incase of rent payment to an nri person.
Regards,
Divyesh Jain
One of my client is a Salaried person and a Resident of India. He has paid rent of Rs. 50,000/- per month in FY. 2019-20.
The owner of the property to whom my client is paying rent is an NRI person. But my client didn't deduct any tds while paying rent in F.Y. 2019-20.
Now my clients wants to pay the entire TDS amount. I want to know what is the rate at which he has to deduct tds and how much penalty he has to pay now since he has not deducted and paid tds every month.
Please help me regarding the provisions applicable incase of rent payment to an nri person.
Regards,
Divyesh Jain
09 August 2020
TDS needs to be deducted @ 5%
1.5% per month
Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit.
https://www.tin-nsdl.com/faqs/tds-on-rent-of-property/TDS-Introduction.html
1.5% per month
Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit.
https://www.tin-nsdl.com/faqs/tds-on-rent-of-property/TDS-Introduction.html
09 August 2020
5% rate I feel is the rate for Indian resident. For NRI it is 31.2% but I am not sure about whether the deductor i.e. Tenant needs to obtain a TAN number and pay tds on monthly basis.
19 December 2021
Yes , tenant in this case is required to obtain TAN and deduct TDS as specified u/s. 195 of IT act.
19 December 2021
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