Query regarding TDS deduction on rent paid to UAE-based NRI property owner
9 months ago
Hello,
This is to request your guidance regarding TDS deduction by the tenant before paying rent to the NRI owner of a residential property in India.
I live in a rented flat in Noida, U.P., paying a rent of less than 2 lakhs per annum (INR). The flat owner is an NRI residing in Dubai, UAE. I understand that India has a Double Tax Avoidance Agreement with the UAE.
Please advise whether I, as a tenant, am liable to deduct TDS before paying rent every month to the NRI owner. If yes, then how much is the deduction and how should I go about the formalities of deducting and depositing this amount to the tax authorities? The rented flat is for residential use only.
A.Dear client,
Tenants paying rent on properties owned by NRIs are required to deduct 31.2% tax at source and submit the aggregate amount to the tax to the relevant tax authority. So yes, you can deduct the TDS
Tenants paying rent on properties owned by NRIs are required to deduct 31.2% tax at source and submit the aggregate amount to the tax to the relevant tax authority. So yes, you can deduct the TDS
Helpful
Helpful
Share
Read Related Answers
Income Tax Refund
Dear Client,
There are certain criterias for getting your TDS, firstly your relationship status- if you are married then higher rate may be deducted, additionally if you have overpaid other taxes or...
Joint buyers in under construction property, help with 26QB
Dear Client,
TDS is applicable on the purchase of immovable property wherein the sale consideration of the property exceeds or is equal to ₹ 50,00,000 (Rupees Fifty Lakhs). TDS @ 1% should be deducted...
Amount paid to a friend as drawings from a Propritory Business Concern
Dear Client,
A business account in a Bank typically known as a Current account is a kind of bank account maintained by businessmen, corporations and trusts who have a large number of transactions. A...
IT returns
Dear Client,
An unintentional mistake in the IT Return may be rectified by filing a revised return. For better clarification and steps, you need to visit a Chartered Accountant or an I T Consultant to...
Regarding claim of TCS on Foreign Tour Package
Dear client,
The TCS charge would increase the amount you are paying for the total trip. Under the new regulations, a 5% TCS is applicable to foreign travel.
Please ensure that while filing your IT...
Read Blogs on Tax
Tax Lawyers
Find Lawyers by Location