Liability to deduct TDS

[Priya Indrawani]

If a person engaged in property management services, is collecting rent on behalf of Resident Owners & after deducting its management charges remitting the balance rent to owner.

Whether he can can be held liable for TDS compliance as Representative assessee or trustee of Resident Owner?

What will be the tax implications if the owner is Non-Resident ?

AI Summary

TDS on rent: tenant usually deducts, but property managers must withhold when remitting to non-resident owners.
Property managers collecting rent and remitting net amounts act as agents, with tenants ordinarily liable to withhold tax on rent for resident owners, though a manager receiving rent directly may be treated as the person responsible for payment. Managers must withhold tax on commission payments under the commission withholding regime. For non-resident owners, the manager remitting rent must deduct tax under the non-resident withholding framework, comply with outward remittance formalities and apply rates influenced by any applicable double taxation agreement.