TDS on payments made to non-residents has long been a difficult part of income tax law. Before you can start a payment, a thorough study of each transaction is needed to understand TDS on overseas payments. Improper TDS on a foreign party may increase the danger to your organisation when the assessment is made in later years. So let me guide you on the process to make the rent payment to NRI.
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You as a tenant must first get a tax account number (TAN) by visiting
https://tin.tin.nsdl.com/tan/form49B.html
on the NSDL website. Once the TAN is obtained, you can deduct tax each month and pay the landlord the balance amount.
You may make a financial transfer to NRI's Non-Resident Ordinary (NRO) account. A financial year may allow for the transfer of up to $1 million in NRO money. Another option is to transfer the money directly to the NRI landlord's overseas bank account. So, an NRI with a Canadian address can request that the rent for his India apartment be credited to his Canadian bank account.
You must still submit Form 15CA online to the Income Tax Department before returning the funds. The TDS rate, applicable DTAA, and other information on the intended use of the transfer are all certified in Form 15CB. This helps you understand the procedure for payment of rent to NRI.
How to apply TDS to rent payments made to NRIs
You must follow the following procedures when deducting TDS from rent payments made to an NRI:
You need the NRI landlord's PAN and TAN to deduct TDS from rent payments.
You are required to apply a 30% TDS rate to the rent amount.
You must use the TAN they previously got to submit the TDS to the government.
A TDS return is due from the renter to the Income Tax Department within a certain amount of time.
You have to obtain a TDS certificate from the Income Tax Department to claim a credit for the TDS deducted and submitted to the government.
How to make rent payment to NRI must be clear to you now.
Read More: How to pay the rent including TDS? How to pay TDS on rent online? How to pay TDS on property online? How to pay TDS on a property purchase?Your Feedback Matters! How was this Answer?
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Procedure for payment of rent to NRI?
Arham
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2023-03-06T20:33:55+00:00 2023-03-15T01:31:57+00:00Comment
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