Renting of immoveable property for commercial purposes

This query is : Resolved

CA. VIVEK PAI (Querist)
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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

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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07 November 2012 Dear Vivek,

Answers to questions 1 to 3 are YES.

The NRI shall be assessed as "Income from House Property".

Anuj
Femaquery@gmail.com

Message likes : 1 times

CA. VIVEK PAI

CA. VIVEK PAI (Querist)
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09 November 2012 Thanks a lot Anuj.

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