TDS on Rent Paid to NRI (Section 195) – Rules, Rates & Filing Compliance
Paying rent to an NRI landlord in India?
You are required to deduct TDS under Section 195 — non-compliance can lead to penalties and notices. 👉 Get expert CA support for monthly TDS calculation, filing & compliance.
Need Instant Guidance?
Connect directly with a Chartered Accountant to structure rent payments to non-resident landlords smoothly.
TAN Registration Support
Quick TAN allocation for tenants
Form 27Q Quarterly Returns
Accurate & timely filing
Form 16A TDS Certificates
Issued to NRI landlord for tax credit
About TDS on Rent (NRI)
When rent is paid to a Non-Resident Indian (NRI), the tenant must deduct TDS under Section 195 of the Income Tax Act.
Key Rules Under Section 195
Mandatory requirements every tenant paying rent to an NRI must follow
TDS must be deducted on entire rent amount
No minimum threshold — applicable from ₹1 onwards
Tenant must obtain a TAN
TDS must be deducted every month
TDS return must be filed using Form 27Q
TDS Rate on Rent to NRI
Statutory rate breakup and applicable surcharges
Plus applicable surcharge & health/education cess.
Effective deduction may exceed 30%+ depending on the NRI landlord's total income slab & surcharge applicability.
Common Mistakes by Tenants
Frequent errors that attract heavy tax interest and penal notices
Not deducting TDS at all
Deducting incorrect rate (e.g., 5% or 10%)
Not applying for TAN
Missing monthly deductions
Delay or non-filing of Form 27Q
Lower TDS Option (Important)
The NRI landlord can apply for a Lower TDS Certificate under Section 197.
💡 We assist with:
How We Help You
We offer complete end-to-end TDS compliance services
Monthly TDS calculation
TAN application
TDS payment & challan handling
Filing of Form 27Q (quarterly returns)
Issuance of Form 16A (TDS certificate)
Ongoing compliance & reminders
Our Process
Reliable, accurate & fully managed compliance workflow
Understand rent agreement & details
Calculate monthly TDS
Deduct & deposit TDS
File Form 27Q
Issue TDS certificate (Form 16A)
Who Needs This Service?
Applicable entities and individuals paying rent to NRIs
Tenants paying rent to NRI landlords
Corporates leasing property from NRIs
Individuals renting residential or commercial property
Anyone responsible for rent payments to non-residents
Documents Required
Simple documentation required to initiate compliance
PAN of tenant & landlord
Rent agreement
Monthly rent details
TAN (if available)
Lower TDS certificate (if applicable)
Trusted by Tenants Paying Rent to NRI Landlords
“Handled monthly TDS for my NRI landlord smoothly.”
“Saved me from compliance issues and notices.”
“Very professional and responsive CA team.”
Frequently Asked Questions
Avoid penalties and stay compliant while paying rent to an NRI.
Get expert CA support for monthly TDS calculation, filing & compliance.