Guides · 6 min read
Renting out your Hyderabad property as an NRI: tax, TDS and tenants
How rental income is taxed for NRIs, the 30% TDS every tenant must deduct, Form 15CA/CB, and how to manage tenants without a relative chasing rent.
How is an NRI's rental income taxed?
As income from house property: gross rent minus municipal taxes paid, minus a flat 30% standard deduction, minus home-loan interest. The net figure is taxed at slab rates when you file your Indian return. Most NRIs get a refund because TDS is deducted at a higher rate than their final liability.
What TDS must my tenant deduct?
Under Section 195 the tenant of an NRI landlord must deduct TDS at 30% plus surcharge and 4% cess (about 31.2%) on every rupee of rent — there is no ₹50,000/month threshold as there is for resident landlords. The tenant needs a TAN, deposits the tax monthly, files Form 15CA (and 15CB via a CA above ₹5 lakh), and issues you Form 16A. Rent should be paid into your NRO account.
Managing tenants from abroad
Use a registered rental agreement (11 months or longer, registered at the SRO where required), tenant KYC with Aadhaar and employer verification, a security deposit of 2–3 months in Hyderabad, and rent to NRO by standing instruction. Our Manage desk does move-in/move-out inspections, quarterly checks, and repairs, and follows up TDS certificates so your return is easy.
General information only; rules vary by state and change often. Confirm with a lawyer or CA before acting.