Regarding Payment of Rent by Resident to NRI


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Quick Summary
This discussion clarifies the tax compliance for UK residents paying rent to Non-Resident Indian (NRI) landlords when the monthly rent exceeds £50,000. The key takeaway is that tenants must deduct Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act. Payments made to an NRI's NRO account via cheque, demand draft, or bank transfer only require TDS deduction, not the filing of Forms 15CA/CB. These forms are typically needed for overseas payments or payments to NRE accounts.

09 June 2025 Respected Colleagues,
If Resident tenant pays rent to NRI landlord above 50k per month, then what are the compliances due under Income tax act from the tenant point of view like Form 15CA, Form 27Q (TDS) etc................Please guide

10 June 2025 Deduct TDS as per sec. 195 IT act & file relevant returns.
Pay the amount by cheque or DD, or bank transfer to his/her NRO account. No need to file form 15CA/CB.

10 June 2025 ok thank you sir for your valuable feedback....
But Sir in which case Form 15CA is must filed because on some websites mentioned form 15CA is required to be filed in case payment to NRO account of NRI? or if payment made to indian bank of NRI, then what are the compliances?

10 June 2025 FORM 15CA/CB required to be filed in case you are making overseas payment or to any NRE account. When paid to any local bank's NRO account via bank transfer or through cheque, only TDS deduction is mandated.

10 June 2025 ok Sir thank you............

10 June 2025 You are welcome.

28 September 2025 Good luck.....


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