the Qs
the Qs

I am a tenant with an NRI landlord. I’ve been informed that the TDS on my rent will be deducted at 30%, but I believe my landlord’s tax liability could be lower. Can I apply for a reduction in TDS, and if so, how?

Tax
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Yes, as a tenant paying rent to an NRI landlord, you are required to deduct TDS at the rate of 30% on rent payments. However, if your landlord's actual tax liability is lower, you can apply for a reduction in TDS. The application can be made either by you, as the tenant, under Section 195, or by the landlord under Section 197. You’ll need to submit supporting documents like - the rental agreement, -computation of the landlord's estimated income and tax, and -the housing loan interest schedule. It’s typically better for the landlord to apply, as they have the necessary details.
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the Qs

I am a tenant with an NRI landlord. I’ve been informed that the TDS on my rent will be deducted at 30%, but I believe my landlord’s tax liability could be lower. Can I apply for a reduction in TDS, and if so, how?

Yes, as a tenant paying rent to an NRI landlord, you are required to deduct TDS at the rate of 30% on rent payments. However, if your landlord's actual tax liability is lower, you can apply for a reduction in TDS. The application can be made either by you, as the tenant, under Section 195, or by the landlord under Section 197. You’ll need to submit supporting documents like - the rental agreement, -computation of the landlord's estimated income and tax, and -the housing loan interest schedule. It’s typically better for the landlord to apply, as they have the necessary details.
Rectangle 5937

Get access to Personal Finance Insights you will actually want to read!

Join 12,000+ readers who receive practical and actionable insights decoding Personal Finance right to their mail box to learn all about money!
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Recent Posts

Expense Ratio

How the rich save taxes?

Direct or Regular Mutual fund—which one should you pick?

ETF

Where does the richest people live?

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Tax Saving Strategy, Personal finance course, Finance with Dime, Financial freedom guide, Wealth-building strategies, Investing tutorials, Financial planning tools, Interactive finance classes, Finance community app, Master personal finance, Step-by-step guide to financial freedom,Tax-saving strategies', Mutual fund SIP guide, Income tax calculator,Best investment plans for 2024, NPS tax benefits, HRA tax exemption guide,Equity vs. debt mutual funds, How to file ITR online, Tax-free income sources, Old vs. new tax regime comparison, Top-performing SIPs in India, Retirement planning tips, Financial planning for millennials, Budgeting tips for professionals, Government schemes for senior citizens

Why join Dime's Tax Strategy Masterclass?

Comprehensive

Practical

Case Studies

This isn’t a normal masterclass. You will get a comprehensive hands-on experience of various “Tax Strategies” with our proven case-study based approach.

Get access to in-house built powerful Old vs. New Tax regime calculator, tax handouts, and more.
Thousands have benefited you can too!

2000+ People have already saved Taxes

Tax Saving Strategy, Personal finance course, Finance with Dime, Financial freedom guide, Wealth-building strategies, Investing tutorials, Financial planning tools, Interactive finance classes, Finance community app, Master personal finance, Step-by-step guide to financial freedom,Tax-saving strategies', Mutual fund SIP guide, Income tax calculator,Best investment plans for 2024, NPS tax benefits, HRA tax exemption guide,Equity vs. debt mutual funds, How to file ITR online, Tax-free income sources, Old vs. new tax regime comparison, Top-performing SIPs in India, Retirement planning tips, Financial planning for millennials, Budgeting tips for professionals, Government schemes for senior citizens

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