Tenant’s Guide: Navigating Rental Agreements with NRI Landlords!
Are you contemplating renting a property from a landlord who may be an Indian NRI? There are several guidelines you should be aware of if you are. First and foremost, it’s crucial to confirm that your owner has named a representative in India who may act on their behalf in the event of any legal or support concerns. Make sure, without a doubt, that you have a written rental agreement in place that outlines the terms and circumstances of your lease. This should include information on lease payments, security deposits, and any other applicable costs or fees.
Subtract TDS from the rent.
In India, you must deduct TDS from the rent you pay when renting a property from an NRI landlord. By submitting Form 16A to the Wage Assess Office, you can deduct TDS. Whether the NRI landlord receives the rent in cash, via check, or in any other manner, you must deduct TDS as necessary.
How to get a TAN number?
For the purpose of deducting TDS from lease installment payments, a TAN number may be necessary as a charge derivation and collection account number. On the NSDL website, you can submit an online application for a TAN number.
Transferring the proper account’s TDS payment
The NRO (Non-Resident Ordinary) account of the NRI landlord must receive the rental payments. A designated bank account specifically created for NRIs to manage their Indian income, such as lease payments, profits, and annuities, is known as an NRO account. It enables NRIs to easily repatriate their foreign assets while also enabling them to hold and manage profits and business endeavors in Indian rupees. Even if the lease is paid in installments, you can still be required to pay the TDS. Since the TDS is often computed on the total amount of the lease, rather than the amount paid each month.
A TDS certificate is being issued
You must provide the NRI landlord in Frame 16A with a TDS certificate within 15 days of the end of each quarter. The owner will record wage charge returns using this certificate.
Lease Payment on Time
This is perhaps a resident’s most important duty. You could be asked to leave the property if you don’t pay your rent on time.
Maintaining the property
You take care to maintain the house in excellent shape and to make any necessary repairs. Additionally, you should notify the landlord of any support concerns right away. You take responsibility for any property damage you may cause. This includes harm done to the walls, furnishings, tools, etc.
Rental Contract
The rental agreement between a tenant and a landlord may constitute a contract with legal force. You must ensure that you follow all of the agreement’s provisions without a doubt. To prevent any confusion later, it is appropriate to include all the terms and conditions in the agreement.
Inform Support of Problems
The owner might not have as much access to the property as a local owner. This just suggests that you might need to be more proactive in outlining any maintenance concerns. If there is a problem with the property, don’t wait for the owner to get in touch with you. Report any problems as soon as you can.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
