Rent payable to NRI

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When paying rent to a Non-Resident Indian (NRI), Tax Deducted at Source (TDS) is applicable under Section 195 of the Income Tax Act. The standard TDS rate is 30% plus surcharge and cess. Tenants must obtain a TAN, deduct TDS at the time of payment or credit, and deposit it by the 7th of the following month using Challan ITNS 281. Quarterly TDS returns must also be filed using Form 27Q.

Chandra Kala

Chandra Kala (Querist)

17 May 2025 Rent payable by NRI. TDS under what section to be done. What formalaties to followed in remittence of rent to NRI

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 May 2025 TDS on rent payable to an NRI is governed by Section 195 of the Income Tax Act, 1961.
The standard TDS rate on rent paid to an NRI is 30% plus applicable surcharge and cess.
Obtain TAN: The tenant must first obtain a Tax Deduction and Collection Account Number (TAN).
Deduct TDS: Deduct TDS at the applicable rate from the rent at the time of payment or credit to the NRI's account, whichever is earlier.
Deposit TDS: The deducted TDS must be deposited with the government by the 7th of the following month using Challan ITNS 281. Payment can be made online or through authorized banks.
File TDS Returns: The tenant is required to file a quarterly TDS return in Form 27Q.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2025 Good luck.....

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