Rent to NRI

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2010 Dear Members,

The query is
1) My client is a NRI and he receives rent in India ie directly credited to his account in India. So what is the rate of TDS and pls also give me the revelant section

Thanks in Advance

Sunil

Sunil (Expert)
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30 July 2010 TDS is required to be deducted by the Tenant u/s 195. The Tenant can approach the Foreign Section of Tax Department to determine the TDS amount under this section.

Alternately, your client can also approach the assessing officer assessing his income in India for a certificate for a lower rate of tax to be deducted if his India Income Tax liability will be lower than prescribed deduction.

Normaly the tenant will have to deduct from the total gross payment on which the income is subject to tax in India 30% as TDS + applicable cess and surcharge if your client is Individual or HUF. In this section 195 cess is still payable.