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Paying rent to a landlord who lives abroad? Under Section 195, you must deduct TDS from the very first rupee — there is no ₹50,000 threshold. Enter the rent to see exactly how the money splits.
Surcharge depends on the landlord's total Indian income, not the rent alone. Most rental-only cases fall in the first band.
Obtain a TAN (Tax Deduction Account Number) via Form 49B. A PAN alone is not enough under Section 195.
Deduct TDS when rent is paid or credited — whichever is earlier — and deposit it by the 7th of the next month.
File the TDS return in Form 27Q reporting the payment to a non-resident.
Issue Form 16A to the landlord so they can claim credit for the tax deducted.
The flat 30% rate assumes the entire rent is taxable. In reality, the landlord can claim the 30% standard deduction, home-loan interest, and their basic exemption — so the real tax due is often far lower, sometimes nil.
The fix is a lower/nil deduction certificate under Section 197 (applied for in Form 13). With it, the tenant deducts at the certified rate instead of the flat rate. Without it, the excess sits with the tax department until the landlord files a return and waits for a refund.
InSafeHands collects rent with the paperwork done right — verified tenants, transparent records, and guidance on TDS compliance — across Visakhapatnam, Bengaluru, Hyderabad, and Chennai.