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Clarification on TDS payment on rent to non resident

13 February 2024

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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3 Replies

Saravanan nagaraj (463 Points)
Replied 14 February 2024

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.

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Yasaswi Gomes new (Finance ) (4545 Points)
Replied 20 February 2024

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

Roodita Gaikwad (Practice) (4395 Points)
Replied 22 April 2025

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.

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