Tds on rent

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Is it necessary for an salaried individual to deduct tax at source on payment of rent @ Rs 50,000 per month to an NRI?

AI Summary

Salaried individuals must deduct TDS on monthly rent of Rs 50,000 to NRI under Section 195 of Income Tax Act. A salaried individual inquired whether they need to deduct tax at source on a monthly rent payment of Rs 50,000 to a non-resident Indian (NRI). The response clarified that payments to non-residents are subject to Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act. The deduction should be made if the amount is chargeable under the Act, applying the rate prescribed by the Act or the Double Taxation Avoidance Agreement (DTAA), whichever is more beneficial.