Rate of TDS for Rent paid to NRI

@ 2%  for use of machinery or plant/equipment

@ 10% for use of land or building, furniture & fittings

TDS - Rent paid to NRI - 30.9% under section 195

i guess murthy is correct ...

Hi all,

What is the TDS Rate if Rent paid to NRI and NRI kept money in India....If Lower than 30.90% Please Suggest me for Tax Planning.

it does not matter what the NRI does with the money.  He can deposit the same in his NRO a/c.  The only thing relevant here is that the company is paying rent to the NRI and he has to deduct tax @ 30.9%.  The NRI can later file a return and claim refund or approach for a lower tax deduction certificate if he wishes to.

But from the point of view of the payer company it does not matter where the NRI keeps the money.