NOTE – To deduct and pay TDS on rent payable to an NRI Landlord, tenant should get TAN ( Tax Deduction and Collection Account Number ) issued from Income Tax Department.
- TAN of tenant is mandatory
- Register TAN on Income Tax Portal
Online Steps to Pay TDS on Rent
- STEP 1 – TAN Login Login to Income Tax Portal with Tenant’s PAN – https://eportal.incometax.gov.in/iec/foservices/#/login
- STEP 2 – Go to header menu of “e-File“, and click on “E-Pay Tax” from drop down menu
- STEP 3 – Click on “New Payment” on Right Hand Side of the screen
- STEP 4 – Select “Assessment Year”, Double Check data of “Assessment Year” and Corresponding “Financial Year”. Click on “Proceed” of section “Pay TDS/TCS“
- STEP 5 – Search of Description “Other sums” and Section “195”. Select it.
- STEP 6 – Select option “Other than Company Deductee – Income Tax (Other than Companies) (0021)“. Enter TDS amount @ 31.2% of rent amount in the “(a) Tax” field. Click Continue
- STEP 7 – Select Bank. In case canNOT find bank, then select “Other Bank“. Click Continue
- STEP 8 – Follow rest of the screens till payment is completely successfully
- STEP 9 – On successful payment, download tax payment receipt or challan
- STEP 10 – Around 7 days after the TDS payment, this TDS data in reflected in tenant’s “AIS” and “Form 26AS” statements