TDS liability on Rent paid to NR in an Indian Bank

An NRI (from Dubai) owns a flat in India. Flat is put on rent. Rent paid by tenant in Rupees in NRI's bank account with an Indian Bank (no actual remittance outside India).

My queries:
- Rent limit for TDS deduction ?
- Rate of TDS ?
- Is TAN required by tenant for TDS deposit ?
- Does tenant need to file 15 CA ?


Thanks & Regards

(P.S. - If there is any other point that is needed to be considered please share that as well)
Replies (3)
Quick Summary
This discussion clarifies the Tax Deducted at Source (TDS) implications when an Indian tenant pays rent to a Non-Resident Indian (NRI) landlord. It confirms there's no minimum rent limit for TDS deduction, with the rate set at 30% plus 4% cess under Section 195 of the Income Tax Act. The tenant is required to obtain a TAN for TDS deposit, but filing Form 15CA is not necessary. While the flat owner faces advance tax liability, they are not subject to additional penalties if the tenant fails to deduct TDS, though informing the tenant of their obligation is advised.

1. No limit.

2. 30% + 4% cess u/s. 195 of IT act.

3. Yes.

4. No.

In case tenant doesn't deduct TDS, would there be any liability on Flat owner to deposit advance tax or any other liability/penalty for flat owner ?

As usual advance tax liability would arise, but otherwise no other specific requirement over owner due to non-deduction of TDS by tenant.

Better inform tenant about his TDS liability.

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