# 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.

## More free tools

- [NRI property-sale TDS & tax calculator](/tools/nri-property-sale-tds) — What the buyer cuts, your real tax, and the refund that gets stuck.
- [NRI residential status & RNOR calculator](/tools/nri-residential-status) — NRI, RNOR, or Resident? The full test, not half of it.
- [NRI repatriation calculator (NRO to NRE)](/tools/nri-repatriation) — How much you can send abroad, and the forms each transfer needs.
- [Cost of managing property from abroad](/tools/cost-of-managing-property-abroad) — The gap between the headline rent and what you keep.
- [Retire-in-India corpus calculator](/tools/retire-in-india-corpus) — How much you need, and what to save each month to get there.

## Related reading

- [How NRI rental income is taxed in India](/guides/nri-rental-income-tax-india)
- [TDS on rent to an NRI landlord, explained](/guides/tds-on-rent-nri-landlord)
- [Is NRO account rent taxable? What counts](/guides/nro-account-rent-taxation)

[All free tools](/tools) · [All NRI property guides](/guides) · [Get a proposal](/proposal) · [Transparent pricing](/pricing)

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Source: [https://66mgroad.com/tools/nri-rental-income-tax](https://66mgroad.com/tools/nri-rental-income-tax) · 66 MG Road. Full LLM brief: https://66mgroad.com/llms.txt