Tds applicability for a non - resident

[CHITRA HARIHARAN]

In the case of Non-Resident Indian who is not a senior citizen who is not a lady, where the rent payment under section 194I exceeds 1,20,000/- per annnum, is it necessary to deduct income tax or whether any special provision exists for non deduction of tax at source?

[CAGOPALJI AGRAWAL]

TDS is not deductible u/s 194I if payment is made to non-resident. Kindly read the first two lines of section 194I itself.

[CAGOPALJI AGRAWAL]

But subject to provision of section 195 again.

[CAGOPALJI AGRAWAL]

But subject to provision of section 195 again.

AI Summary

TDS on rent: payments to non-residents fall outside section 194I but remain subject to withholding under section 195.
TDS under section 194I does not apply to payments made to non-residents; instead, payments to non-residents are governed by the withholding regime under section 195, which requires deduction or withholding on such payments unless specific exemptions or directions apply.