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Form 15CA Applicability to House Rent Payments to NRI in Indian Account

04 June 2025

I am a resident of India and I pay monthly rent to my landlord, who is an NRI currently residing in the USA. However, the rent is transferred to his HDFC bank account in India in INR (Indian Rupees). There is no foreign remittance involved in this transaction.

In such a scenario, where the payment is made in India to an NRI's Indian bank account, would Form 15CA (and possibly 15CB) still be required as per the Indian Income Tax regulations?

Your insights or any references to relevant provisions or circulars will be highly appreciated.

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8045 Points)
Replied 04 June 2025

When paying rent to an NRI landlord with an Indian bank account, the requirement for Form 15CA and 15CB depends on the nature of the payment and tax implications.

*Key Points:* - *Tax Deduction at Source (TDS)*: As a resident of India paying rent to an NRI, you are required to deduct tax at source.

The tax rate will depend on the DTAA provisions or the Income Tax Act. -

*Form 15CA*: This form is required for payments made to non-residents, including rent payments.

However, there's an exception for certain payments specified under Rule 37BB. -

*No Foreign Remittance*: Since the payment is made in INR to the NRI's Indian bank account without any foreign remittance, it might not require RBI approval.

*Form 15CA Requirements:* - If the payment exceeds INR 5 lakh, you'll need to submit: -

*Part B of Form 15CA* - *Certificate in Form 15CB* from a chartered accountant - *Part C of Form 15CA* - If the payment is below INR 5 lakh, you'll need to submit *Part A of Form 15CA*.

*Exemptions:* - Payments specified under Rule 37BB don't require Form 15CA and 15CB. However, rent payments to NRIs aren't explicitly mentioned in the -

Verify the tax implications and DTAA provisions applicable to your NRI landlord's tax residency status. By following these guidelines, you can ensure compliance with Indian Income Tax regulations when paying rent to your NRI landlord.