I am a NRI, co-owning an apt with my mother who is a resident Indian. The apt is let to an MNC which plans to pay the rent by 2 cheques of equal amount in my mothers and my name. In this regards
1) Does the MNC have to pay TDS and give us cheques of the net amount after deduction
2) What is the computation of the tax for the rent? VISHY241@GMAIL.COM
1) Does the MNC have to pay TDS and give us cheques of the net amount after deduction
2) What is the computation of the tax for the rent? VISHY241@GMAIL.COM
Since you are Non Resident and your mother is resident , the MNC has to deduct the tax at two different rates and in two different sections because section 194I is applicable only to residents.The TDS on the payment to mother is required to be done u/s 194 I @ 15% where as to you u/s 195 of the I T Act @ 30% .If you find that the tax rate at which TDS is made is higher keeping in mind the taxable income , you and your mother can apply before the A.O for certificate for lower rate .For this your mother can apply in form 13 before her A.O
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