The 60-second version
Section 196I requires Indian resident tenant to deduct 30% TDS on rent paid to non-resident landlord — DTAA may reduce rate with Form 67 and lower-deduction certificate.
Section 196I applies when you pay rent to non-resident landlord from India
Section 196I requires person paying rent to non-resident to deduct TDS at 30% (plus surcharge and cess) unless DTAA provides lower rate.
Returning NRIs who retain foreign rental property and pay rent to overseas landlord must file Form 15CA/15CB for outward remittance.
Domestic lane: Section 194-I guide for rent paid to resident landlord in India.
Rent TDS sections
| Section | Landlord | Rate |
|---|---|---|
| 194-I | Resident | 10%/2% |
| 196I | Non-resident | 30% |
| 195 | Other NR payment | DTAA/20% |
| 194-IB | Individual/HUF tenant | 5% |
Section 196I compliance
Identify NR
Landlord tax status.
DTAA check
Treaty Article 6 rate.
Deduct TDS
30% or treaty rate.
Form 15CB
CA certificate.
Form 26Q
Quarterly TDS return.
Flow
Section 196I kit
- Rent agreement.
- Landlord TRC.
- TDS challan.
- Form 15CA/15CB.
- Form 26Q ack.
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30% default
Without DTAA certificate and lower-deduction approval, deduct 30% on gross rent before SWIFT.
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vs Section 194-I?
194-I is resident landlord; 196I is non-resident landlord.
DTAA rate?
India-US/UK DTAA Article 6 often 15% — Form 67 for credit.
Form 15CB?
Mandatory for rent remittance to NR landlord.
Own foreign property?
No 196I if you are landlord — tenant abroad deducts under local law.
Form 26Q?
File quarterly TDS return with landlord PAN if available.
Net vs gross?
196I applies on gross rent unless DTAA net-basis election.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.