I’ve given the flat of my Non-Resident Indian (NRI) grandson on hire. The tenant had agreed to deduct TDS (tax deducted at supply) on the relevant charge of 31.2%. But after taking possession of the home, he has denied deducting the TDS and deposit it within the authorities’s account citing tedious process. I’m a sick senior citizen girl and unable to take any authorized motion. Now, what could be executed to keep away from authorized motion by the Income Tax Department towards my grandson?
Under India’s ncome-tax regulation, if the payee qualifies as “Non-Resident” in India throughout the related monetary 12 months, the payer is required to deduct TDS (tax deducted at supply) at a specified charge (plus relevant surcharge and well being and training cess) on taxable revenue of the payee. In case of rental revenue, the desired charge is 30% (plus relevant surcharge and well being and training cess).
Accordingly, it’s the payer’s obligation to deduct and deposit TDS on the taxable revenue of the “Non-Resident”. In case of non-compliance, the payer shall be accountable for penal penalties.
As an revenue earner, your grandson might deposit the income-tax below advance tax mechanism or self-assessment mechanism. Advance tax must be deposited in 4 installments (15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March). In case of any default in fee of advance tax, curiosity on the charge of 1% per 30 days is payable for the interval of default of every installment. Self-assessment tax could be deposited on or earlier than submitting of income-tax return together with curiosity for delay in deposit of advance tax and self-assessment tax.
Sonu Iyer is tax accomplice and other people advisory companies chief, EY India. Queries at mintmoney@livemint.com
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