Clarification on TDS payment on rent to non resident

Whether TDS is mandatory to deduct for the rent payment made to a nonresident by an Indian citizen who stays in a house owned by a non-resident in India ( He is claiming HRA on the rent payment ) - Rent Per month is 38000 per month.?

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Quick Summary
This discussion clarifies the mandatory requirement to deduct Tax Deducted at Source (TDS) when an Indian resident pays rent to a non-resident landlord for a property in India. Even if the rent is below the usual threshold, TDS under Section 195 is applicable. The payer must deduct TDS at a rate of 31.2% (including surcharge and cess) and may need to file Forms 15CA and 15CB before remitting the rent.

Yes. It is mandatory to deduct TDS on rent on NRI property. TDS @ 30% + Surcharge & cess @ 1.2% = @ 31.2%

Tenant has to file form 15CA on Income tax portal. If you rent paid more than 5 lakhs per annum. Tenant has to file 15CB by chartered accountant.

  • The person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct tax at source.

That means 194i is not applicable to you. I deal with company tds only 

Yes, TDS under section 195 is mandatory when rent is paid to a non-resident, regardless of the amount. Since the recipient (landlord) is an NRI, the payer (tenant) must deduct TDS even if the rent is below ₹50,000/month. Section 194IB (threshold ₹50,000) applies only to resident landlords.

So in this case, TDS under section 195 must be deducted, and Form 15CA & 15CB may also be required before remitting the rent to the NRI’s account.

For hassle-free Form 15CA/CB filing and bulk XML generation from Excel, try our simple utility tool — fully compliant with the IT portal.

Download here: https://xltool.in/15ca-15cb/ | www.xltool.in

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