Respected Sir,
I need your clarification on TDS and Tax.
'A' is an NRI. He has a property in India rented to a Bank. He has given Power of attorney to his Mother in India to carry out all transaction in India on his behalf. As power holder she entered into rental agreement with the Bank and received Rent deposit in her name.
Now the Bank informed that the Monthly rent will be issued in the name of 'A' after deducting TDS @ 30% being NRI.
But as Powe holder and party to the rental agreement the Mother asks the bank to pay the monthly rent to her bank account or to the joint Savings Bank account with her Son (the principal) after deducting 10% TDS.
Is it possible? Kindly clarify the legal position in this regard.
Thankyou
Thennarasu j
CAclubindia
