Form 26AS: Your Receipt for Every Rupee India Took

Where it works differently

The tenant applies s.194-I (10%) or s.194-IB (5%)

Wrong section. Both are resident-payee provisions; rent to a non-resident falls under s.195.

The tenant becomes an assessee-in-default under s.201 for the shortfall.

There is no threshold

s.195 has no minimum. Even Rs 8,000 a month of rent attracts deduction.

Unlike 194-I (Rs 2.4 lakh) and 194-IB (Rs 50,000 a month).

The landlord obtains a Form 13 certificate

The AO can certify a much lower rate reflecting the 30% standard deduction and interest, often into single digits.

s.197. This is the standard fix for NRI landlords.

The tenant is an individual with no TAN

They must still obtain a TAN to deduct under s.195. This is the practical reason NRI landlords lose tenants.

s.203A.

Commonly got wrong

• Tenants deduct 10% TDS on rent under s.194-I. That applies to resident landlords. For an NRI landlord the section is 195 at 30% plus surcharge and cess.If your landlord is an NRI you deduct under section 195 at 30% plus surcharge and cess, you need a TAN, and there is no minimum threshold. The landlord can lower it with a Form 13 certificate.

Where it works differently

The gain is short-term

TDS is at the applicable slab rate, effectively 30% plus surcharge and cess for most NRI sellers.

s.195 requires deduction at 'rates in force' for the actual character of the income.

No lower-deduction certificate is obtained

TDS applies to the ENTIRE SALE CONSIDERATION, not to the gain.

s.195 operates on the sum paid unless the AO determines otherwise. This is the whole commercial case for Form 13 / Form 128.

There are joint NRI sellers

TDS is deducted separately against each seller's PAN in their ownership proportion.

Rule 37BA. Deducting entirely against one PAN strands the other's credit.

The buyer deducts 1% under s.194-IA

Wrong section. The buyer becomes an assessee-in-default under s.201 for the shortfall plus 1% per month interest and penalty under s.271C.

s.194-IA applies only where the seller is a RESIDENT.

Commonly got wrong

• TDS on property purchase is 1% over Rs 50 lakh. That is s.194-IA, for RESIDENT sellers only. For a non-resident seller it is s.195 at the full capital-gains rate, with no threshold.1% applies only if the seller is a resident. NRI seller means s.195 at 12.5% plus surcharge and cess on the whole consideration unless a certificate is obtained.
• The buyer files Form 26QB. 26QB (now Form 141) is for s.194-IA. An NRI-seller purchase needs a TAN and Form 27Q (now Form 144).Buying from an NRI, you need a TAN, you deduct under section 195, and you file Form 27Q (Form 144 from 1 April 2026). Form 26QB is only for resident sellers.

Where it works differently

A valid TRC and Form 10F (Form 41 from 1 Apr 2026) are furnished

The treaty rate applies, commonly 10-15% under Article 11.

s.90(2) gives the more beneficial of treaty or Act.

No PAN is furnished

s.206AA imposes at least 20%, but Rule 37BC allows escape by furnishing name, address, TIN and TRC. Courts have also held s.206AA cannot override a treaty rate.

Rule 37BC + settled case law.

Claiming the treaty rate at source

The s.115A(5) filing exemption is lost, so an Indian return becomes necessary.

That exemption requires TDS at not less than the s.115A rate.

The account is NRE or FCNR instead

Interest is exempt and no TDS applies, while the holder is a FEMA non-resident.

s.10(4)(ii) and s.10(15)(iv)(fa).

Commonly got wrong

• NRO interest TDS is 30%. Incomplete. Surcharge and 4% cess sit on top, so the effective rate is higher.30% plus surcharge and cess, around 31.2% at the base level.
• You can file Form 15G/15H to stop NRO TDS. Those are resident-only declarations. An NRI filing one makes a false declaration.Use Form 13 (Form 128 from 1 April 2026), or claim the treaty rate with a TRC.