TDS RATE ON RENT FOR NRI

Respected Members,

 

I am paying Rent of Rs. 1 Lakh to a NRI landlord. What is the Rate for TDS which i should deduct. 

Pls advice. 

Replies (2)
Quick Summary
When paying rent to a Non-Resident Indian (NRI) landlord, you must deduct Tax Deducted at Source (TDS) at a rate of 30%, plus any applicable surcharge and cess, under Section 195 of the Income Tax Act. This is different from the rate applied to resident landlords. The TDS for NRI landlords must be deposited using Form 27Q.

You must deduct TDS at 30% on rent paid to an NRI landlord under Section 195 of the Income Tax Act.

 

For rent paid to an NRI landlord, the tenant must deduct TDS under Section 195 at 30% (plus applicable surcharge and cess), not the 2% that applies to resident landlords under Section 194IB. The process also differs: deposit via Form 27Q, not Form 26QC. The [TDS rate changes guide for FY 2026-27](https://taxgarden.in/blog/tds-tcs-changes-fy-2026-27-complete-guide) covers both sections side by side if you need to cross-check the applicable rates.

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