How can tenants of NRIs apply for TDS reduction?
1 month ago

How can tenants of NRIs apply for TDS reduction?

Live Mint  

Under what circumstances a tenant whose landlord is a non-resident Indian can apply for a reduction in tax deducted at source on rent and what are the documents needed to support the application? However, the landlord's actual tax liability will generally be lower due to deductions available against the rent income or lower tax slabs. However, regardless of the landlord's actual tax liability, the tenant is legally obliged to deduct tax at the rate of 30% on rent payments to non-residents. It could be an error—here's how to resolve it While filing for the certificate for lower TDS, one must also submit supporting documents to substantiate the lower amount of tax payable by the landlord, such as computation of estimated income and tax of the landlord, rental agreement and a copy of interest schedule on the housing loan.

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History of this topic

What should be done if you fail to deduct tax on rent paid to an NRI?
1 year, 5 months ago

What should be done if you fail to deduct tax on rent paid to an NRI?

Live Mint  

My landlord is a non-resident Indian. —Name withheld on request Under India’s income tax laws, if the payee qualifies as non-resident in India during the relevant financial year, the payer is required to effect TDS at a specified rate on taxable income of the payee. It is the payer’s obligation to effect TDS on the taxable income of the non-resident …

How tax on rental income works for NRIs?
1 year, 7 months ago

How tax on rental income works for NRIs?

Live Mint  

How is income from house property taxed in India for NRIs or non-resident Indians? Rental income from the property situated in India is taxable in the hands of the owner of the house property, whether it is for an NRI or a resident Indian. The method of computing taxable rental income is prescribed under the income tax law as follows: …

How are NRIs taxed on rental income?
1 year, 9 months ago

How are NRIs taxed on rental income?

Live Mint  

My son is a non-resident Indian with a small rental income of ₹30,000. Neither he nor his tenant can afford a chartered accountant to submit the tax deducted at source on this income to the income tax department. —Name withheld on request As per income tax rules on TDS, the deductor is obligated to deduct TDS and deposit the same …

How NRIs can lower TDS on income generated from India?
1 year, 10 months ago

How NRIs can lower TDS on income generated from India?

Live Mint  

For income generated in India, non-resident Indians are required to file income tax returns. However, the provisions of the Income Tax Act provides certain relaxations or relief for the NRI being subjected to deduction of part or whole of the TDS as discussed below: Application for Lower Deduction by the Tax Deductee/ Payee As aforementioned, there could be certain instances …

How can NRIs claim tax deduction in India?
2 years ago

How can NRIs claim tax deduction in India?

Live Mint  

How can a Non-Resident Indian claim tax exemption of up to ₹1.5 lakh under 80C and other sections. For deductions under section 80C, the investments allowed to NRIs are: life insurance premium payment and children’s tuition fee paid to any school, college, university or educational institution situated in India for full-time education of any two children. They can also claim …

Onus on tenant to cut TDS for NRI payments
3 years, 5 months ago

Onus on tenant to cut TDS for NRI payments

Live Mint  

I am a non-resident Indian, and am earning ₹2.5 lakh every year as rental income from my property in India. Is this arrangement fine, or should I myself cut the 30% TDS every month on behalf of my tenant, and claim it while filing tax returns? —Name withheld on request According to the Income Tax Act, tenants must deduct TDS …

Deduct TDS on rent if your landlord is an NRI
5 years, 6 months ago

Deduct TDS on rent if your landlord is an NRI

Live Mint  

Non-resident Indians commonly invest in real estate in India, and rent it out. TDS needs to be 31.2% of the rent, unless the NRI landlord furnishes a certificate stating that his total income in India is estimated to fall below the tax exemption limit. For example, even if the rent is ₹5,000 per month, the tenant will have to deduct …

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