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TDS Applicability on NRO

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Monika Khadayate

Chartered accountant

57 Points Posted on 16 May 2023

A bank has receipt of lease rent application of Individual where landlord is NRI and who is residing in UAE. Landlord has given his NRO account for rent credit. Our queries are as under

what is applicable TDS rate on rent and under which IT section it will be remitted?
If landlord is given SBGEN account then what is the applicable TDS?
In case of NRE account of landlord, what is the applicable TDS?
Are there certain countries where double taxation act is applicable? Kindly give brief information on the same.

Replies (1)

B Durga Prasad

Student

125 Points Posted on 17 May 2023

TDS rate on rent for NRO account: 30% under section 195.
TDS rate on rent for SBGEN account: 30% under section 195.
TDS on rent for NRE account: Generally not applicable.
Double Taxation Avoidance Agreement (DTAA) depends on the specific agreement between India and the UAE or other countries to avoid double taxation. It may provide lower TDS rates, exemptions, or tax credits. Consult a tax professional for specific guidance.

To learn more TDS click here
For more detailed information, visit Swipe Blogs.