• TDS on rent to NRI landlord

I am an NRI and have rented my property to a resident. My tenant needs to know how to process the rent payment each month and provide the TDS certificate each quarter. Can all this be done online? or Does this have to be done manually by going to the bank?
Asked 1 month ago in Income Tax

Hi

 

Yes, everything can be done online. It would involve taking a TAN first, monthly payment of TDS and quarterly return filing. Then TDS certificates may be generated.

We may assist with the same .

Lakshita Bhandari
CA, Mumbai
5475 Answers
551 Consultations

5.0 on 5.0

- As the recipient of rent is NRI, TDS would be deductible u/s 195. Rate of TDS is 30% basic tax plus surcharge plus 4% HE Cess.  Assuming total rent per year would be less than Rs.50 lacs, effective TDS rate would be 31.2%. In case rent is more than 50 lacs, only percentage of surcharge will increase.

 

- To avoid higher deduction of TDS, seller should obtain lower TDS deduction certificate by filing an online application to the jurisdictional AO.

 

- Buyer should obtain TAN,deduct and deposit TDS monthly. Filing of TDS return is quarterly.

 

- Buyet should also file Form 15CB and 15CA for every payment to NRI.

 

- For repatriation of proceeds outside India by NRI, Form 15CA should be filed by NRI.

 

Entire process is online.

 

For detailed discussion, you may consult us telephonically.

 

If you need any assistance on the above matter, we are happy to assist you.

Vivek Kumar Arora
CA, Delhi
4079 Answers
346 Consultations

5.0 on 5.0

Hello,

 

Yes, the whole procedure would be done online.

The tenant needs to obtain TAN, deduct and deposit TDS monthly and file TDS returns quarterly. Upon payment, the tenant must fill form 15CA and submit it online. If the annual payment of rent is above Rs.5,00,000, then the tenant needs to obtain Form 15CB from a Chartered Accountant.

The NRI can ask for a lower deduction or no deduction certificate by filing an online application to the jurisdictional AO.

For a detailed resolution of your query, you can contact us directly or take a phone consultation.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2555 Answers
9 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Yes, the entire process is online.

 

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 authorities. Upon payment, the tenant must fill-in Form 15CA and submit it online to the income tax department. In this case, TDS is mandatory on the rent paid irrespective of the amount payable.

 

 

The tax must be deducted from the rent payable at the rate of 31.2%. This tax rate is applicable unless the NRI landlord has a certificate stating that his total income from India is below the exemption limit. A certificate under Section 197 for lower TDS received under Section 197 would require the deductor to deduct lower TDS as per the order of the AO.

 

First of all, tenants must get a tax account number (TAN) via the NSDL website at https://tin.tin.nsdl.com/tan/form49B.html. Once the TAN is received, the tenant can deduct tax every month and pay the remaining amount must be paid to the landlord.

 

The tax deducted at source from the rent paid in this calendar month must be paid by the seventh of following calendar month. 

 

 

We may assist you in entire procedure.

 

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
5084 Answers
157 Consultations

5.0 on 5.0

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 authorities. Upon payment, the tenant must fill-in Form 15CA and submit it online to the income tax department.

 Tenants must get a tax account number (TAN) via the NSDL website at https://tin.tin.nsdl.com/tan/form49B.html. Tenants must file returns within a month from the end of each quarter for the TDS paid on rent to an NRI landlord.

Ruchi Goel Anchal
CA, Gurgaon
447 Answers
5 Consultations

5.0 on 5.0

Yes this all can be done online and I can assist you but your tenant will have to take TDS number for that.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.

Naman Maloo
CA, Jaipur
3798 Answers
45 Consultations

5.0 on 5.0

Hi

As per section 203A, TAN application needs to be submitted to ITD within 1 month of deducting TDS.

It generally takes about 7-15 days.

No documents are required as such. You can view the instrucitons on nsdl site. The application can be made online or offline through TIN-FC (Tin facilitation centres) using form 49B.

Once application is made online, a unique 14 digit acknowledgement no consisting of several details is generated. You must save & print this acknowledgement. After making the payment of TAN processing fee of Rs.65, you can submit the duly signed acknowledgement of TAN and acknowledgement of payment to NSDL. at the following address:-

 

NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony,
Near Deep Bungalow Chowk,
Pune - 411016

Remember to submit the acknowledgement immediately once you apply online.

 

Hope this suffices. Get back for any clarification. Also provide feedback if you like.

Thanks

Siddharthh Jain
CA, Gurgaon
28 Answers
1 Consultation

5.0 on 5.0

Hi

 

7-15 business days

 

Karishma Chhajer
CA, Jodhpur
2391 Answers
22 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA