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.
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
Divya Sharma
Replied 9 months ago
Thank you for your advice.
Divya Sharma
Replied 9 months ago
Could you please also advise whether there are any cases where exemption is available?
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