Income type guide

Rental Income TDS

Tenants must deduct 31.2% TDS on rent paid to NRI landlords. While DTAA usually doesn't reduce this rate, proper planning can minimize the impact.

How it works

What happens to your rental income as an NRI

When an NRI earns rental income from Indian property, the tenant (or property manager) must deduct TDS at 30% plus 4% cess (31.2% effective). This applies to the gross rent, not net after expenses.

31.2%

Default TDS rate

Varies

DTAA rate by country

Overpaying on rental income?

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Typical savings: Limited DTAA benefit (source country taxation)