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 Not Applicable Under Section 194I for Non-Resident Indian Rent Payments; Consider Section 195 for Tax Deduction Rules. A query was raised regarding the applicability of Tax Deducted at Source (TDS) for a Non-Resident Indian receiving rent payments exceeding 1,20,000 INR annually under section 194I. The response clarified that TDS is not deductible under section 194I for payments made to non-residents. However, it was noted that the provisions of section 195 should be considered, which may impose different requirements for tax deduction at source for non-residents. The discussion involved three replies, focusing on the interpretation of these sections of the Income Tax Act.