Rae of tds on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 Sir,

My client ( Individual ) has property In Mumbai, which he has been given on leave and licence basis to the bank in Mumbai and for which he is getting income in India in Indian Rupess. The said income is deposited in his Bank’s NRO a/c which is also in Mumbai

Earlier he was Indian Citizen, his passport is also of India, now from few years he has gone out of India, so we are filing his income tax return as Non Resident for the Incomes received In India.( ie interest etc.)

My querry is that :-

The Income received as licence fees is deductable at what rate of TDS in this case?

The party is saying that they will deduct TDS u/s 195 Please guide me whether it is correct ?

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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24 November 2011 if status is non resident that the payer is correct. however you may ask him to file an application u/s. 195(2) for seeking permission to deduct TDS at lower rate on the ground that entire rent is not taxable as there is rebate of 30% else you may seek refund by filing ITR.