{"id":91045,"date":"2026-11-12T20:30:00","date_gmt":"2026-11-12T15:00:00","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/?p=91045"},"modified":"2026-11-12T20:30:00","modified_gmt":"2026-11-12T15:00:00","slug":"nri-rental-income-kolkata-tds-tenant","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/nri-rental-income-kolkata-tds-tenant\/","title":{"rendered":"NRI Rental Income from a Kolkata Property: TDS by the Tenant, Deductions, NRO Account and Repatriation"},"content":{"rendered":"

When an NRI lets out a flat in Kolkata, the tenant must deduct TDS on every rent payment at 30% plus surcharge and cess (31.2% for most landlords), whatever the amount of rent. The tenant needs a TAN, files a quarterly TDS return in Form 27Q, and issues Form 16A. Because 31.2% is usually far more than the actual tax, many NRI landlords apply for a lower deduction certificate before the tenancy starts.<\/strong> Rent goes into an NRO account, and up to USD 1 million a year can be repatriated after the tax forms are filed.<\/p>\n

How the tenant deducts TDS<\/h2>\n
\n\n\n\n\n\n\n\n\n\n
Point<\/th>\nRule<\/th>\n<\/tr>\n<\/thead>\n
Rate<\/td>\n30% plus surcharge (if any) and 4% cess; 31.2% without surcharge<\/td>\n<\/tr>\n
Threshold<\/td>\nNone for payments to non-residents<\/td>\n<\/tr>\n
Tenant needs<\/td>\nTAN, challan payment by the 7th of the next month, quarterly Form 27Q<\/td>\n<\/tr>\n
Certificate to landlord<\/td>\nForm 16A every quarter<\/td>\n<\/tr>\n
Lower deduction<\/td>\nIf the landlord has a certificate from the income tax department, the tenant deducts at the lower rate<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

Tenants who are individuals often do not know they must take a TAN. If they do not deduct, they can be treated as defaulters and the expense is not allowed if they are businesses. A company tenant renting your Kolkata flat as a guest house will usually insist on deducting correctly. See our TDS return Form 27Q service<\/a>.<\/p>\n

How rent is taxed in your hands<\/h2>\n
    \n
  1. Start with the annual rent.<\/li>\n
  2. Deduct KMC or municipal property tax actually paid by you.<\/li>\n
  3. Deduct a standard 30% for repairs and maintenance (no bills needed).<\/li>\n
  4. Deduct interest on a home loan for the property.<\/li>\n
  5. Add the result to your other Indian income, and apply the slab rates for non-residents.<\/li>\n<\/ol>\n

    For a \u20b930,000 a month Salt Lake flat, rent of \u20b93.6 lakh less KMC or municipal tax of \u20b912,000 and 30% standard deduction gives taxable income of about \u20b92.44 lakh. If that is your only Indian income, the tax may be very low, while the tenant would have deducted over \u20b91.1 lakh at 31.2%. This is why a lower deduction certificate is worth getting.<\/p>\n

    Lower deduction certificate<\/h2>\n

    Apply online to the income tax department with your estimated income, the tenancy agreement and tenant details. The certificate names the tenant and the rate, and is valid for the financial year. Apply well before the first rent payment.<\/p>\n

    Bank account and repatriation<\/h2>\n