Praveen J & Associates
TDS & TCS · TDS on Rent to NRI (Section 195)

TDS on Rent Paid to NRI Landlord (Section 195) — Rules, Rates & Filing

NRI landlord ko rent de rahe ho? 194I / 194IB nahi — Section 195 applicable hota hai.

Monthly TDS, 27Q return aur 15CA / 15CB for remittance — full NRI rent compliance.

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Common Problems Faced

Wrong section (194I/IB vs 195)

Wrong TDS rate applied

TAN not obtained

27Q not filed

15CA / CB missed for remittance

About Section 195 (NRI rent)

  • Applies whenever rent paid to NRI landlord
  • TDS rate ~31.2% (subject to DTAA / cert)
  • Deduct monthly at credit / payment, whichever earlier
  • Filed via Form 27Q quarterly
  • 15CA / 15CB needed for remittance abroad
Note: TRC + Form 10F can unlock lower DTAA rate; lower cert u/s 197 also possible.

Who Should Use This Service?

Tenants of NRI-owned property

Corporates leasing from NRIs

Family / individual tenants with NRI landlord

High-value rentals

Remittance abroad cases

Benefits

  • Correct Section 195 compliance
  • DTAA / 197 rate optimisation
  • 27Q + 16A delivered
  • Remittance through 15CA/CB
  • Penalty & disallowance avoided

Important Points

  • TAN of tenant mandatory
  • Deduct monthly (not annually like 194IB)
  • Higher TDS without PAN of NRI
  • Remittance triggers 15CA / 15CB
  • DTAA relief with TRC + Form 10F

Our Process

1

Confirm NRI status

2

Obtain TAN if not held

3

Compute TDS — domestic vs DTAA rate

4

Deposit monthly & file 27Q quarterly

5

Coordinate 15CA / 15CB & remittance

Documents Required

PAN of tenant & NRI landlord
Lease agreement
NRI residency proof
TRC + Form 10F (DTAA)
Lower deduction cert (if any)

Frequently Asked Questions

Nahi — Section 195 applies.

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