Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

TDS for rent paid to non-resident under Income Tax Act 2025

TDS / TCS 807 views 3 replies

Sayantan

Engineer

27 Points Posted on 03 April 2026

Hi, until March 2026, each month I had been deducting the TDS under section 195, from rent paid to my landlord who is a non-resident, at the rate 31.2% (30% + 4% cess). Every quarter, I had been filing form 27Q as well. From 1st April 2026, the Income tax Act 2025 has come into effect and I am not able to understand the following.

Under which section, sub-section should I deduct the TDS for rent paid to my landlord who is a non-resident
The rate of TDS.

It will be of much help if someone can respond to my query. Thank you.

Replies (3)

Quick Summary

Section 195 continues for rent to non resident. Deduct TDS at about 31.2 percent unless DTAA or lower rate applies. File Form 27Q. Portal issues are temporary; compliance rules remain unchanged.

Aashok FC Advisory

Finance Compliance Consultant

1025 Points Posted on 03 April 2026

No change for your case after April 2026
Continue deducting TDS under Section 195
Standard rate remains ~31.2%, unless DTAA or lower certificate applies
Your current compliance (27Q, deduction, etc.) is correct and safe

Sayantan

Engineer

27 Points Posted on 03 April 2026

Thank you for responding to my query. However, I do not see Section 195 in the drop-down list under 'TDS/TCS Section wise payment details', when I had selected, 'Income-tax Act, 2025, TDS/TCS payments for Tax Year 2026-27 and onwards' in https://eportal.incometax.gov.in/iec/foservices/#/dashboard/e-pay-tax/e-pay-tax-dashboard. Kindly let me know if I am doing anything wrong. Thank you.

Tax Garden

Tax Consultant

790 Points Posted on 09 April 2026

This seems to be a portal update lag, not a change in applicability. Even under the new Act, TDS on payments to non-residents continues on the same principle as earlier Section 195.

For now, you can continue selecting Section 195 in the portal and apply the correct TDS rate (DTAA or rates in force). Ensure proper documentation and consistency in Form 27Q.

Once the portal is updated, the new section mapping should reflect accordingly.