Tds applicability on rental income

[CHITRA HARIHARAN]

Tax Deduction at Source is mandatory for rental payments exceeding Rs.1,20,000/- p.a. Kindly clarify (1) whether a non resident cum senior citizen who doen't have any other source of income can opt for nil deduction of tax by applying to the company/income tax authorities in the suitable form? If so, please indicate the form number also? (2) Whether the situation will be the same for resident cum senior citizen of india?

[Surender Gupta]

Please refer to section 197, it allows the person whether resident or non resident to make an application before the AO for deduction of tax at source at lower rate or at nil rate.

AI Summary

Tax deduction at source on rental income can be reduced or made nil by obtaining an assessing officer certificate under section 197. Applicability of Tax Deduction at Source to rental payments exceeding the threshold can be mitigated by an application to the assessing officer for a certificate authorising deduction at a lower or nil rate. That procedural remedy is available to both resident and non-resident payees, including senior citizens, and the assessing officer's certificate governs the payer's obligation to deduct tax at source on the rental payments.