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Tds procedure for rental income in inr - deposited into nro account of usa citizen holding oci

04 July 2018

Need help with TDS procedure for rental income in Indian Rupees - deposited into NRO account of USA citizen holding OCI card. Q1. Which challan should the tenant use to pay tax? Is it 27Q? Can one pay on the tenant's behalf? Q2. The quarterly return also needs to be filed using the same form 27Q- by the tenant? Q3. Since the rental income is deposited into NRO account in INR, does the tenant need to furnish declaration under Form No. 15CA? Would appreciate any help on the above. Thanks! Harsh Chutani +91-9810007754 harshchutani @ gmail.com

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184610 Points)
Replied 04 July 2018

TDS on Rent paid to NRI under Sec 195. In case the person receiving the rent is a non-resident Indian (NRI), TDS in such cases would be deducted @ 30% under Section 195.

The deductor has to obtain TAN number to deposit the TDS.....

More details refer:: 1. nriinformation/tds-nri-rental.

2. tenants-with-nri-landlord-must-know

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Harsh Chutani (7 Points)
Replied 06 July 2018

Thank you very much sir!

Is there no way to deduct tds on the tenant's behalf just like Form 26QC in which the deductor just furnishes the PAN (instead of TAN)?

Asking because the house is let out to 3 tenants (collectively as tenants) and it becomes onerous for them

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184610 Points)
Replied 06 July 2018

This is the rule made without any alternative.

One exception...... if the gross total income of the NRI landlord is below maximum amount which is not chargeable to tax, he can apply for 'Non-deduction of tax cerificate' from his Jurisdictional ITO, in that case TAN or TDS process not applicable at all.