TDS RATE ON RENT FOR NRI

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.

For rent paid to a non-resident landlord, TDS is governed by Section 195, not the rent-TDS provisions for residents. Deduct at the rates in force on the amount chargeable to tax in India; where the full rent is taxable and no lower/nil-deduction certificate applies, the usual rate is 30% plus applicable surcharge and 4% health and education cess. The ₹1 lakh monthly rent does not by itself make the resident-landlord threshold or rate applicable.

The landlord may seek a lower/nil deduction certificate from the Assessing Officer under Section 197. Check the applicable surcharge based on the landlord’s status and income, and any relevant treaty position. Rent payments to a non-resident may also involve TAN, TDS deposit, return and certificate compliance.

This rent-payment workflow needs accurate payee residency details, rate checks and timely TDS reporting. Manual practice work is difficult, and automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a practical walkthrough, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1