Tds on rent

[Guest]

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

[Guest]

Payment of any sum to the Non-residents would attract TDS u/s 195 and deduction is to be made when any person for paying to non-resident any other sum is required to deduct tax at source, if the amount is chargeable under the Income tax Act. Thus, I feel that in respect of the rent amount paid by you to NRI, TDS is applicable u/s 195 at the rates prescribed in the Act or DTAA (if any) whichever rate is beneficial.

AI Summary

TDS on rent to non-resident must be deducted at domestic or treaty rates when the payment is taxable under law. Payment of rent to a non-resident attracts TDS u/s 195 when the amount is chargeable to tax; the payer must deduct tax at source at the rates prescribed by domestic law or, if applicable and beneficial, the rates under a double taxation avoidance agreement.