TDS on rent paid to an NRI landlord: what a Hyderabad tenant must do (TAN, Form 144)

Official pages read on 23 Oct 2026 · Not legal advice · Government websites change, so re-check before you rely on a step.

Short answer: if you rent a flat or house in Hyderabad, Secunderabad, Gachibowli, Kondapur or anywhere in Telangana from an owner who is a non-resident (NRI), the Rs. 50,000-a-month, 2%, PAN-only route under section 194-IB does not apply: the Income Tax Department's own note says that for a non-resident the tax is deducted under section 195. That means a TAN, a quarterly TDS statement (Form No. 144 from the 2026-27 tax year, earlier Form 27Q) and a certificate to the owner. The rate is not quoted here because we could not read it on an official page today: treat it as to verify with a chartered accountant.

Resident landlord or NRI landlord: what changes for the tenant

Point	Landlord resident in India (individual or HUF tenant)	Landlord is a non-resident (NRI)
Which rule	Section 194-IB of the Income-tax Act, 1961 (the Income Tax Department's note on it, read today)	The same note says: "The tax shall be deducted under Section 195 if the sum is payable to a non-resident." From 1 April 2026 the Income-tax Act, 2025 applies; the exact new section for your rent is to verify.
When TDS starts	Only if rent exceeds Rs. 50,000 for a month or part of a month	The 194-IB threshold does not apply, because that section covers only resident landlords. Whether any threshold applies to your case is to verify with a tax adviser.
Rate	2% under 194-IB (no surcharge or cess added)	We did not find the rate on an official page today, so we don't quote one. It can also change with a tax treaty (DTAA) or a lower-deduction certificate.
TAN	Not needed; the tenant can use their PAN	The TRACES FAQ says PAN cannot be used to pay TDS in such cases; a separate TAN is needed (applied for in Form 49B).
Return and certificate	Form 26QC challan-cum-statement within 30 days from the end of the month of deduction; Form 16C certificate	Quarterly statement: Form 27Q up to the 2025-26 year, and Form No. 144 from the 2026-27 tax year. Certificate: Form No. 131 (earlier Form 16A), issued within 15 days from the Form 144 due date.

Sources: Income Tax Department, TDS on Rent by Certain Individual or HUF (written under the 1961 Act); Income Tax Department, Comprehensive Note on Form 27Q / Form No. 144 (8 March 2026); TRACES general TDS FAQ. All read on 23 Oct 2026.

Form No. 144: the quarterly statement for payments to non-residents

What it replaced. Form 27Q under the 1961 Rules became Form No. 144 under the Income-tax Rules, 2026 (section 397(3)(b) of the Income-tax Act, 2025; rule 219), per the Income Tax Department's note of 8 March 2026.
Due dates in that note: Q1 (April to June) by 31 July, Q2 (July to September) by 31 October, Q3 (October to December) by 31 January, and Q4 (January to March) by 31 May after the tax year.
What the tenant needs to file it: the challans for tax paid, the landlord's PAN (the form asks for it "if available"), the country the money is sent to, the rate used (as per the Act or a tax treaty), and the landlord's Form 10F / Tax Residency Certificate if a treaty rate is claimed.
The landlord's credit. TRACES generates Form No. 131 from the filed statement, and the TDS then shows in the landlord's Form No. 168 / AIS. The note says non-residents can claim the credit in their Indian return, or in their home country under a tax treaty.

Seven steps for a tenant renting from an NRI owner

Confirm the owner's residential status in writing. Ask the owner (or the agent managing the flat) whether they are a non-resident for the tax year. Living abroad is not the same test, so let their adviser confirm it.
Get a TAN before the first rent payment you will deduct tax from, using Form 49B.
Ask the owner for their PAN, and for a Tax Residency Certificate and Form 10F if they want a treaty rate.
Ask whether the owner has a lower or nil deduction certificate. The TRACES FAQ says the recipient can apply to their Assessing Officer, and the payer can apply to the officer handling non-resident taxation for an order on how much to deduct. If there is one, keep a copy and quote its number.
Deduct, deposit and file each quarter (Form No. 144 from the 2026-27 tax year), and issue Form No. 131 to the owner.
Write it into the rental agreement. State the gross rent, that tax will be deducted as required by law, and that the owner gets the certificate. Pay rent only to the owner's bank account named in the agreement.
Keep the file: agreement, TAN letter, challans, filed statements, certificates and the owner's PAN and tax-residency papers.

Why it matters: the same Income Tax Department note says a person who fails to deduct or deposit TDS is treated as an assessee in default, with interest and penalties. We have not seen figures on how often tenants of NRI owners in Telangana or Andhra Pradesh miss this, so we don't quote any.

Telangana: the rental agreement side

TDS is a central income-tax rule, so it is the same in Hyderabad as anywhere in India. What is local is the agreement itself: registration and stamp duty on a lease in Telangana are covered in our lease deed guide below. If the NRI owner signs through a power of attorney holder, check that the power of attorney covers letting the property and receiving rent, and that rent still goes to the owner's own account.

Related guides

Renting in Andhra Pradesh? See the Andhra Pradesh guide.

Not tax or legal advice. This page summarises Income Tax Department and TRACES material read on 23 Oct 2026. The 194-IB note was written under the Income-tax Act, 1961, and the Income-tax Act, 2025 applies from 1 April 2026, so confirm the current section, rate and forms with a chartered accountant before you pay rent.

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FAQ

Do I need to deduct TDS on rent paid to an NRI landlord in Hyderabad?

Yes. The Income Tax Department's note on rent TDS says section 194-IB covers resident landlords only, and that tax is deducted under section 195 if the rent is payable to a non-resident. Confirm the current section under the Income-tax Act, 2025 with a chartered accountant.

Is the Rs. 50,000 a month limit relevant for an NRI owner?

That limit belongs to section 194-IB, which applies only to resident landlords. For an NRI owner, check with a tax adviser whether any threshold applies.

Can I use my PAN instead of a TAN for an NRI landlord?

The PAN-only route is a 194-IB feature. The TRACES FAQ says PAN cannot be used to pay TDS in other cases and a separate TAN, applied for in Form 49B, is needed.

Which form replaces Form 27Q?

Form No. 144 under the Income-tax Rules, 2026, for the 2026-27 tax year onward, with Form No. 131 as the certificate to the owner (earlier Form 16A).

Official sources

Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.