TDS on Payment of Rent to NRI

Dear All,

One of my client is making payment of Rent to a person. The property is situated in Bangalore but the owner is residing in Singapore. The payment will be made to his bank accounts in India.

Please clarify if there wil be any issue while deducting TDS as the payee is NRI. Whether normal rate of 10% or special rate and procedure will be applicable.

Replies (5)

normal rates will apply with PAN card availibility , 

if pan is not available then 20% + EC

Answer given by U.S.Sharma is correct

Normal rate is applicable only when PAN number is given by the receiver, but in case of non availability of PAN the maximum rate will deduct before transfering the amount to the person account.

Normal rate is applicable only when PAN number is given by the receiver, but in case of non availability of PAN the maximum rate will deduct before transfering the amount to the person account.

Dear Mr. Kumar

 

With due respect to other member, TDS on payment of Rent to NRI shall be governed by Section 195 and your client has to deduct tax at source at the rate in force i..e 30.9%.

 

Further, in case actual tax liability of your client/NRI is less than 30.9% or nil, your client u/s. 195(2) / NRI u/s.197 may apply in prescribed form to obtain order for lower/nil deduction of Tax.

 

Regrads

CA Juzer

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