My son stays in Abroad and is a Non-Resident Indian (NRI). I have rented his flat. The tenant is cutting Tax Deducted at Source (TDS) at 31.2% from rent. Is there any way to ensure that this TDS is not cut?






Gurveender Gurveender
Answered on February 05,2020

Tenants paying rent on properties owned by NRIs are required to deduct TDS at the rate of 30% (additional cess and surcharge as applicable) before making a payment to the NRI. Upon payment, your tenant will fill in Form 15CA and submit it online to the income tax department. This TDS will reflect in your son’s Form 26AS. TDS deduction is mandatory on the rent paid, irrespective of the amount payable as rent. In case your son’s total income is below the taxable limit in India, you may approach the assessing officer to issue a certificate to you for lower or nil rate of TDS. You can submit this certificate to the tenant so that TDS is deducted accordingly.


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