Hi All, One of my relative is a NRI from Australia. He is having property rental income from India. The following are the queries:-
1) Is TDS applicable to be deducted by the tenant who is individual? If so, at what rate?
1 a) Whether the answer is different, if the tenant is corporate?
2) If the agreement is split between rent and maintainance, whether the portion relating to maintaninance is liabile to be offered to tax or liable for TDS?
3) How will be the rental income taxed or offered for tax in Australia? I mean once the rental income suffers TDS or tax in India, then whether the same will be taxed in Australia for differential taxes? For eg; Tax rate in India is 30% and Tax rate in Australia is 35%. If Income suffers tax in India @ 30%, then the differntial tax of 5% (35%-30%) is liable in Australia?
4) Any challenges in transferring/remitting the rental income from NRO to NRE account?
Your valuable comments is highly appreciated and for academic purpose it would be great if sections or reference are also quoted.
CAclubindia
