NRI rental income tax & tenant-TDS calculator

Rent paid to an NRI has two confused parties. The landlord thinks the tax is brutal because 31.2% vanishes from every rent cheque. The tenant often has no idea they were the one meant to cut it, until a notice arrives. Both are looking at the same Section 195, from opposite ends.

This calculator runs both. As a landlord, it shows your real tax after the 30% standard deduction and loan interest, against the 31.2% withheld, and the refund you are usually owed. As a tenant, it tells you whether you must deduct, how much, and which form, because getting that wrong makes you liable for the tax plus penalty.

What it does

Landlord: taxable rent after 30% deduction and loan interest, versus the 31.2% withheld
The refund a landlord is usually owed, and why a Lower Deduction Certificate helps
Tenant: are you liable to deduct, at what rate, under which section
The NRI vs resident landlord fork that changes everything
A downloadable report for either side

Common questions

How much tax does an NRI pay on rental income in India?

Rental income is taxed at your slab after a flat 30% standard deduction on net annual value and a deduction for home-loan interest. Because the tenant withholds 31.2% of gross rent under Section 195, most NRI landlords have more tax withheld than they owe and are due a refund, which a Lower Deduction Certificate can avoid.

Does a tenant have to deduct TDS on rent paid to an NRI?

Yes. A tenant paying rent to an NRI must deduct 31.2% TDS under Section 195, from the first rupee, with no threshold. The tenant needs a TAN, files Form 27Q, and files Form 15CA. This is different from paying a resident landlord, where an individual deducts only if rent exceeds ₹50,000 a month.

What is the TDS rate on rent to a resident landlord?

An individual or family tenant deducts 2% under Section 194-IB only if the rent exceeds ₹50,000 a month (the rate dropped from 5% to 2% on 1 October 2024), once a year, with no TAN and Form 26QC. A business tenant deducts 10% under Section 194-I if annual rent exceeds ₹2.4 lakh.

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