TDS and remitting rent to NRI

TDS and remitting rent to NRI

I have nearly finalised house at Pune for rent RS 35000/ later I confirmed that owner is NRI status and as per my information TDS is must for before rem at 31.2%
1)It seems the account branch and nature of account given was savings account I have insisted on NRO account Whether it can beremitted to NRI also

2)Ifpower of attorney holder has authority to receive rent also if it is to paid to POA what abt TDS rules are sane
and if

Asked 4 years ago in Property Tax

Hi,

Yes, TDS is required @31.2%. Even if you are paying rent to attorney holder, then also you will have to deduct TDS.

Lakshita Bhandari

CA, Mumbai

5687 Answers

942 Consultations

Talk to Lakshita Bhandari

Yes TDS will have to be deducted at 31.2% unless NRI provides a certificate for lower deduction.

Yes you need to deposit the amount in NRO account.

Didn't understand your last line in first para.

TDS would be on NRI, the POA holder has just the authority to receive rent. It shall be taxable income of NRI and not POA holder.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo

CA, Jaipur

4303 Answers

101 Consultations

Talk to Naman Maloo

Hello,

1. Yes, TDS deduction would be required at 30% plus surcharge and education cess i.e 31.2%.

2. TDS would be required even if the payment of rent is made to the NRI owner's POA holder.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hunny Badlani

CA, Madhya Pradesh

2608 Answers

16 Consultations

Talk to Hunny Badlani

Yes thanks but is it ok to pay in PIAS saving account 
since the representatives are residents of India I hope it is not objectionable by con authorities.

Asked 4 years ago

The payment won't be an objective but TDS needs to be deducted correctly.

Naman Maloo

CA, Jaipur

4303 Answers

101 Consultations