Is your landlord an NRI? Know what you must do as a tenant

financialexpress.com:

Are you planning to rent a property from a landlord who is a non-resident Indian (NRI)? If you are, there are certain rules you need to be aware of. First and foremost, it is important to ensure that your landlord has appointed a representative in India who can act on his or her behalf in case of any legal or maintenance issues. Additionally, make sure you have a clear and detailed rental agreement in place that outlines the terms and conditions of your tenancy. This should include information on rent payments, security deposits, and any other fees or charges that may apply.

Adhil Shetty, CEO, Bankbazaar. com, says, “Anyone who pays rent must know the requirements if the landlord is an NRI. Simply paying rent on time may not be enough to comply with Indian income tax laws. You must also identify if your landlord qualifies as an NRI. There are many other obligations that you must fulfil, and failure to comply can result in monetary and legal consequences.”

It is also advisable to keep a record of all communication with your landlord and their representative, including emails, letters, and phone calls. These tips can be helpful ensuring your tenancy runs smoothly and that you are protected under Indian law. To ensure a smooth and respectful tenant-landlord relationship, here’s what you must do if your landlord is an NRI:

When you rent a property from an NRI landlord in India, you are required to deduct TDS on the rent you pay. The TDS rate for rental income of an NRI is 31.2%. You can deduct TDS by filing Form 16A with the Income Tax Department. You must deduct TDS as applicable, no matter the rent is paid via cash, cheque or any other mode to the NRI landlord.

A TAN number is a tax deduction and collection account number