| Question And Answer | |
|---|---|
| Subject: | Rent payment by Resident to NRI |
| Category: | Income-Tax |
| Querist: | Parikh |
| Answered by: | Mr . H. N. Motiwalla |
| Tags: | rent to NRI, TDS |
| Date: | October 14, 2024 |
A resident paying rent to NRI, deducting TDS @ 31.20%. However at the time of filing return (form 27Q), he did not mention the PAN and straight away mentioned “PAN not available” At what rate TDS is deductible ?
Section 206AA requires that PAN is to be given to deductor by deductee otherwise, he shall deduct the tax at higher rate. Sub section (1) of section 206 AA reads as under:
“Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amount on which tax is deductible under chapter XVIIB (hereinafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (hereinafter referred to as deductor) failing which tax shall be deducted at the higher of the following rates, namely:-
i) At the rate specified in the relevant provisions of this Act; or
ii) At the rate or rates in force; or
iii) At the rate of twenty percent
———————————-“
Thus in this case the resident has correctly deducted tax on the rent while paying to NRI i.e. @ 30% plus 4% cess. So deductor while filing form 27Q has correctly stated “PAN is not available” and therefore deducted the tax at maximum rate @ 30% plus cess @ 4%