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?

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.