Applicability of Provisions of 15CA and 15CB

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 Hello Sir

Is Provisions of 15CA and 15CB is applicable in case of payment of rent for Property situated in India to an NRI?

If Yes Further
Rent paid to NRI is credited to their account with indian bank and not remitted in Foreign? it makes any difference

Further the NRI is not having PAN Card, so can we issue 15CB Certificate to them without PAN Card?

I Have also heard that Provisions of 15CA and 15 CB is not applicable in case of payment of rent. is it correct?

Please Help me out to solve the above situation.

Waiting for your early reply.

Vimal Saini

Vimal Saini (Expert)
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11 May 2011 ,For payment of any Income to NRI section 195 of the I T Act comes into action. As per section 195 the tenant is require to deduct tax at source from the amount payable as rent. However many of such tenants fails to deduct tax and pay the full rental amount and insuch case, the Authorised Dealer (Banks) are adviced by RBI/Income Taxthat before remitting any money outside India the remittor has to obtain/furnish form 15CA/CB

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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14 May 2011 Form 15CA and 15CB is required if any remittance is made outside India. If you are paying rent in an Indian Bank, you need not to obtain/furnish form 15CA/15CB.

Moreover, rent to an NRI for property situated in India attracts TDS u/s 195 at the rate of 30.9% in the absence of lower TDS certificate from AO

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Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2011 Thank You CA Krishna sir

is there any specific circular which suggests that if rent paid in indian bank account of NRI, 15CA/15CB is not applicable.

if yes please give me link of the said circular or document so i can quote that in my argument.