TDS on Rent - Rent paid to NRI

This query is : Resolved

DIVYESH JAIN (Querist)
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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

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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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

DIVYESH JAIN

DIVYESH JAIN (Querist)
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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.