Tds on rent to nri

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RINESH DHANESHA (Querist)
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24 March 2015 Mr. ABC (NRI) have a residence property in India and have rented it for Rs.50000 p.m. to an individual for residence purpose only.

Rent will be deposited in Indian Bank only in Indian currency.

Tenant is required to deduct TDS in this case? He is an Individual and salaried person and doesn't have TAN no.

Guide me in the case.

Thanks in advace

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 March 2015 yes under sec 195 he needs to deduct tds and must also file tds return as the threshold limit of rs 180,000 shall be crossed.

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RINESH DHANESHA

RINESH DHANESHA (Querist)
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24 March 2015 But tenant is and individual and doesn't have TAN so do he have to obtain TAN?
I read that TDS to be deducted by other than individual and HUF not have tax audit under sec 44AB.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 March 2015 Yes Rinesh Ji you are correct. If Tax Audit is not applicable u/s 44AB then Individual is not required to deduct TDS.

Tushar Ji threshold limit of Rs 180000/- p.a. is for Section 194I. There is no such limit under section 195.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 March 2015 Sanjay ji by mistake i wrote the threshold limit of sec 194I in sec 195..error is regretted

but dhanesha u had not said anything regarding tax audit whether was conducted in py or not....but anyways wat sanjay bhai is correct

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RINESH DHANESHA

RINESH DHANESHA (Querist)
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25 March 2015 Mr. Tushar i wrote that he is a salaried person so there is no chances of tax audit in that.

Anyways thanks Mr. Tushar and Mr. Sanjay

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 March 2015 Rinesh Ji you are correct in your observation. Tax Audit is not applicable for Individual having only Salary Income.

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