Is your landlord a non-resident Indian? Know your tax compliances.

livemint.com:

If your landlord is a non-resident Indian, you must know some income tax rules that can affect you as a tenant. From the rent you pay to your NRI landlord, you must deduct a certain percentage of the rent at source—tax deduction at source, or TDS—and pay to the Indian government. If you do not deduct the tax and pay that to the government, you may be held liable for that amount plus interest and penalty. 

TDS provisions on rent to a resident landlord are simpler and do not apply unless the monthly payout exceeds ₹50,000. In the case of NRI landlords, any rent amount is subject to TDS.

Even when TDS is applicable for a resident landlord, the rate is only 2% of the rent paid for an entire financial year. That amount has to be deducted from the rent for the last month of the financial year or the last month of tenancy.

For an NRI landlord, the TDS rate is 31.2% of the rent and should be deducted every month. However, income tax authorities can issue a certificate authorising you to deduct TDS at a lower rate based on your application and supporting documents.

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It is the tenant’s responsibility to ascertain if their landlord is a ‘resident’ or an NRI for that financial year. You need to collect a written confirmation from the landlord each year declaring their status. 

If you fail to deduct TDS from the rent payable to an NRI landlord, you cannot claim ignorance of the landlord’s residential status; tax authorities can still hold you responsible for non-compliance.

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You have to obtain a tax deduction account number (TAN) from income tax