How to pay TDS on rent paid to NRI?

When tenants pay rent on NRI-owned properties, they must deduct 31.2% tax at the source and give the tax authorities the total amount. But do you know how to make TDS on rent payment to NRI? You can make the payment from the official TIN NSDL website.

How to Pay TDS on Rent to NRI?

You can follow the process I shared earlier here. Alternatively, you can follow the steps below.

1. Visit the

   TIN NSDL website

   and select Challan No./ITNS 281.

2. Fill in Details:

3. Select '0020' for companies or '0021' for non-companies under 'Tax Applicable'.

4. Choose '200' as the payment type (TDS/TCS payable by the taxpayer).

5. Enter TAN, assessment year, and other required details.

6. Make the payment through net banking or at authorized bank branches.  

7. File Form 27Q quarterly to report TDS deductions on payments to NRIs.

You can generate Form 16A from the

after filing the TDS return. Provide this certificate to the NRI landlord as proof of TDS deduction. This is all about the TDS on rent paid to NRI.

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How NRI should Pay Rent?

What is the Procedure for Rent Payment to NRI?

In India, non-resident Indians (NRIs) frequently purchase real estate and rent it out. Do you intend to rent a home from an NRI landlord? Here, certain regulations you must follow, such as withholding taxes before paying the NRI's rent. Now, the question is how to pay TDS on rent for NRI landlord? So, for this, the tenant is required to complete the respective form and send it to the income-tax authorities. I have shared more details with you below.

How to Pay TDS on Rent to NRI Landlord?

The 2017 budget amended India's laws governing the tax deduction for rent payments. TDS must be deducted at 31.2% of the rent amount unless the NRI landlord provides a certificate stating that their total income in India falls below the exemption limit.

• The tenant is required to complete Form 15CA and send it to the income-tax authorities. 

• There is no minimum threshold for TDS deduction, meaning even if your rent is Rs.5,000 per month, you must deduct TDS. As a tenant, it is your responsibility to verify whether your landlord is an NRI.

• Before deducting TDS, you must get a Tax Deduction Account Number (TAN) through the NSDL website.

• After deducting TDS, you must deposit it with the government by the 7th of the following month (e.g., if rent is paid in June, TDS must be deposited by July 7). You can make the payment through the income tax portal.

• You must submit Form 15CA online for each rent payment. If annual rent exceeds Rs.5 lakh, you must get Form 15CB from a Chartered Accountant.

Failure to deduct TDS results in a penalty equal to the tax amount under Section 271C. I hope you found this helpful.

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Do you rent out your property as an NRI or maybe you're a tenant residing in an NRI's property? Trying to figure out how to pay TDS on rent to NRI? Let me assist you with the same.

How to pay TDS on rent for NRI landlord?

Tenants who pay rent on properties owned by NRIs must deduct 31.2% tax at the source and report the total to the tax authorities. After payment, the tenant must fill out Form 15CA and electronically send it to the income tax division. TDS is required in this situation, regardless of the amount owed on the rent.

For the TDS paid on rent to an NRI landlord, tenants are required to file returns within a month of the end of each quarter. In addition, the tenant must give the landlord a TDS certificate using Form 16A within 15 days of the deadline for completing the quarterly TDS return.

I hope this helps you with the payment of TDS on rent to NRI.

Read More:

In India, real estate is a popular investment for NRIs. Don't neglect to subtract tax from your monthly rent payment if your landlord is an NRI. It is advised for all Indian taxpayers to deduct tax from the rent they pay to NRI. So let me tell you what is the TDS rate on rent paid to NRI and how to deduct it.

How to deduct TDS on rent paid by individual to NRI?

You as a tenant must first have a TAN. The NSDL website allows users to obtain this TAN, the tax account number. The TAN can be obtained online at

. After you have the TAN, or tax account number, you can easily deduct taxes each month and pay the balance due to the landlord in a similar manner. The tax must also be paid by the seventh day of the month after it is due, and the TDS for the month of March must be paid by the 30th day of April. 

Keep in mind that you must pay the TDS on time to avoid penalties. 3 to 7 months of imprisonment could result from this as Section 276B applies to this prosecution. If you miss deducting tax from the rent paid by the NRI landlord, there is no chance of a penalty. This helps you understand how to pay TDS on rent paid to NRI.

What is the example of TDS on rent paid to NRI in India?

Let's assume Mr Samar is an NRI. He is the owner of a home somewhere in Pune. This property was leased to Mr and Mrs Pande by Mr Samar. They pay Rs 20,000 per month in rent. In reference to discussing the rent, Mr Pande spoke to Mr Samar. He learned that Mr Samar is an NRI while this negotiation was still in progress. 

Mr Pande thus began deducting 31.2% of the rent each month. Similarly to that, he puts it to his TAN as well. Mr Pande began making rent payments and deducted TDS of 31.2% from the agreed fixed sum. Since Mr Pande moved in at the beginning of June, the rent was calculated beginning with that month.

This is all from my end about how to deduct the TDS rate on rent paid to NRI.