06 November 2012
Facts of case: 1. Renting of immoveable property by NRI to a Resident. 2. Property is let out for commercial purposes. 3. NRI is a employed abroad and has no place of residence/business in India.
Queries : 1. Does this case fall under deduction u/s 195 as 194I is applicable for only rental income of resident. If it falls under 195 will the applicable rate of TDS be 30.90% (30%+education cess 3% of tax)? 2. Does the exemption limit of Rs 1,80,000.- apply for TDS. Presumably not as it not falling u/s 194I. 3. If lessee is a person who is engaged in business and whose turnover does not exceed prescribed limit u/s 44AB (Tax Audit) is he also required to make TDS. 4. Under which head of income will the NRI be assessed in India
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