Rent payment to nri

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When paying rent to a Non-Resident Indian (NRI) for property in India, tenants must deduct Tax Deducted at Source (TDS) at a rate of 31.2%. This TDS payment is mandatory regardless of the rent amount. While Form 15CA and 15CB are generally required for remittances, they are not needed when the payment is made in Indian currency within India. The tenant is responsible for submitting the deducted TDS to the tax authorities and completing the necessary online forms.

Neha Juyal

Neha Juyal (Querist)
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18 March 2021 payment of rent to nri whose bank account is in India...at what rate tds should be deducted ?? Also requirement of 15ca or cb??

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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18 March 2021 Since you will be making the remittance in India in Indian currency, Form 15CA & CB will not be required.

Deduct the applicable TDS rate of TDS and make the payment.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2021 Tenants paying rent on properties owned by NRIs are required to deduct 31.2% tax at source and submit the aggregate amount to the tax authorities.
Upon payment, the tenant must fill-in Form 15CA and submit it online to the income tax department.
In this case, TDS is mandatory on the rent paid irrespective of the amount payable.

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