InvestorQ : Do I have to deduct TDS when I pay rent to my landlord for the flat I have rented in Chennai? My landlord is an NRI based out of Germany and monthly rent is Rs.25,000.
Dilmini Mercia made post

Do I have to deduct TDS when I pay rent to my landlord for the flat I have rented in Chennai? My landlord is an NRI based out of Germany and monthly rent is Rs.25,000.

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Dhwani Mehta answered.
2 years ago
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TDS deduction for NRIs has a different set of rules. Here is what you need to keep in mind when paying rent to your landlord for the apartment.

· It is incumbent on you to deduct TDS at the rate of 31.2% of the rent, irrespective of the amount of rent. The Rs.50,000 pm limit only applies to resident landlords.

· The exception is if the NRI landlord furnishes a certificate stating that his total income in India is estimated to fall below the tax exemption limit. As a tenant, first check the residential status of landlord before signing rent agreement.

· In order to deduct TDS, you must obtain TAN through the NSDL website. Then you can deduct TDS tax each month at 31.2% month pay online. Only the balance is paid to the landlord.

· TDS has to be paid by you into the government account by the seventh of each calendar month, following the month in which tax is deducted. Failure to do so attracts penal action.

· You also need to file tax return for TDS paid on rent to NRI landlord within a month of the end of each quarter. Subsequently, you can issue TDS certificate in Form 16A to the landlord within 15 days from the due date for filing quarterly eTDS returns.

· Make it a point to fill in Form 15CA online on the IT portal while paying rent each month. If annual rent is more than Rs.5 lakh, obtain Form 15CB from a CA.

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