Rent Agreement with an NRI Landlord: TDS, PoA and Clauses

Important: This article is general information, not legal or tax advice. Templates are informational and not legal advice. For power-of-attorney matters, consult a qualified advocate or legal professional; for other jurisdiction-specific guidance, consult a qualified legal professional; and consult a Chartered Accountant for TDS and Form 15CA/15CB.

Renting from an NRI owner raises questions that a standard tenancy form does not settle: who deducts tax on the rent, how a Power of Attorney (PoA) holder can sign for an owner abroad, and which clauses protect each party. This page covers a rent agreement for NRI landlord cases, answers what its sources support, and routes the rest to a Chartered Accountant (CA) or an advocate.

The short answer: for payments up to 31 March 2026, the provision the sources name for payments to non-resident payees is Section 195 of the Income-tax Act, 1961. For payments from 1 April 2026 the position may differ under newer law, so a CA must confirm the current section before any payment. A PoA holder can sign only within the scope written in the PoA, and an advocate should check that scope. No TDS rate is given here.

The TDS Provision for Rent Paid to a Non-Resident Landlord

Section 195 and non-resident payees

The sources name Section 195 of the Income-tax Act, 1961 for payments of other sums to a non-resident. The landlord is a non-resident. Whether Section 195 applies to a given payment, and who must make any deduction, is for the CA to confirm. This article does not state that a tenant is liable for a missed deduction, and it does not state that the tenant must make one.

The date caveat

On the sources checked, the provision above applies to payments made up to 31 March 2026 under the 1961 Act. One search summary suggests that payments from 1 April 2026 may fall under a different section of the 2025 Act. That summary was not confirmed against an official text, so this article does not name the newer section. If your payment falls on or after 1 April 2026, check the current rules with your CA before you pay.

Who does what

Table 1 lists the parties and what each should check before signing. The roles are practical, not legal conclusions.

Why the Rate Is Not Given Here

What is not stated and why

Many pages on this topic print a TDS rate. This one does not. The official TDS rate chart on the Income Tax Department website was not opened for this article, and the rate figures found in other sources disagree with one another. A number that cannot be traced to an official text is worse than no number. The India page on this site links a guide on TDS on rent under sections 194-IB and 194-I. This article does not state rules under either section; which one applies is for the CA to confirm.

Table 2 lists each item this article does not state, its status here, and who confirms it.

How to confirm before any payment

• Ask the CA which section applies to the payment date, which is the first point to settle, and read the official TDS rate chart together.
• Ask the CA for the current rate, any threshold, and the forms to file for each payment.
• Ask the advocate to confirm the PoA scope before the holder signs anything.
• Keep written confirmation of each answer in the agreement file.

The official reference the CA will use is the Income Tax Department website at incometaxindia.gov.in. Read the current TDS rate chart there with the CA, not from a summary page.

Forms to Ask Your CA About

Form 15CA and Form 15CB by name

The sources checked name Form 15CA and Form 15CB for payments to non-resident payees. This article names them only. It does not describe their contents, filing timing or signatories, because those points were not verified against the official instructions.

Confirm limits on the e-filing portal

Limits and timing for these forms must be checked on the Income Tax Department e-filing portal with a CA before any payment is made. Bring the payment date, the amount in rupees, and the PoA details to that meeting.

Power of Attorney: What to Check on Scope

Two questions decide whether a PoA can support the agreement: whether the holder can sign at all, and what the holder is allowed to do. The sources checked say a PoA is required for NRI agreements and that a holder can sign if authorised. Those are secondary statements, not checked against the statute, so treat them as a prompt to check rather than a rule.

The principal is the landlord who grants the PoA, and the attorney is the holder who acts for them. When a holder signs for the owner, the practical test is simple: does the written PoA authorise the holder to rent the property, sign the agreement, and deal with registration? The advocate should answer that question, not this article.

• Is the PoA special or general? Ask the advocate what special or general means for this agreement.
• Does the scope name renting, signing the rent agreement, and registration?
• Does the PoA name the property, and does the draft agreement match it?
• Is a copy of the PoA annexed to the rent agreement?

Where the document list lives

The document list, the NRI paper power of attorney, and the attestation steps are covered in the general online documents checklist. Attestation and apostille points belong there, not here. The Powers of Attorney Act 1882 is the law the sources name for PoAs in India; its text was not checked for this article.

Clauses an NRI Rent Agreement Should Carry

Table 3 maps each clause to the party it protects. The wording of the rent and deduction clause should be set with the CA, not copied from a template.

Rent and deduction clause

This clause should say what the tenant pays, how any deduction is handled, and who confirms it. This article gives no percentage or threshold to put in it. Whether the agreement should show gross or net rent is a wording question for the CA. Any landlord PAN details that the CA says are needed should be confirmed with the CA rather than assumed.

How This Differs From the General Online Documents Guide

The general online documents checklist covers the documents, the NRI paper power of attorney, and the attestation or registration steps, so this article does not repeat them. It adds three things specific to an NRI landlord: the TDS provision named for non-resident payees, the PoA scope questions for an advocate, and the clause checklist in Table 3. Use both: the document guide to gather papers, and this one to ask the right questions about tax, PoA scope and clauses.

Stamp Duty and Registration by State

Stamp duty for rent agreements is set by each state. The figures the sources checked were unsourced or contradictory, so no verified state figure and no registration threshold is given here. The Registration Act 1908 is the law the sources name for registration of leases; its threshold was not confirmed for this article. Check your state's official stamp portal, and ask the advocate which state stamp act applies. The India page on this site offers a free 11-month leave-and-licence agreement for any Indian state and lists 22 states; that is a template choice, not a stamp rate. For whether a Rs 100 stamp paper is valid, read the Rs 100 stamp paper guide.

Draft the Base Agreement, Then Get the NRI Items Checked

The free rent agreement generator from Rent Agreement Generator needs no signup and runs in the browser. The site states that data stays in the browser and that nothing is uploaded. If you need a base agreement for an Indian flat, it is a reasonable starting point.

The generator page does not mention NRI, TDS or power of attorney, so do not rely on it for those items. Create the base agreement, add the clauses from Table 3, and have a CA and an advocate check the NRI items before anyone signs or pays.

Frequently Asked Questions

Which TDS provision applies to rent paid to an NRI landlord?

For payments up to 31 March 2026, the sources name Section 195 of the Income-tax Act, 1961 for payments to non-resident payees. For payments from 1 April 2026, a CA must confirm the current section. Who deducts, and how much, is for the CA to confirm; this article does not settle it.

Can a Power of Attorney holder sign the rent agreement?

That depends on the scope written in the PoA. Ask an advocate to check whether the scope covers renting, signing and registration before the holder signs.

Which questions should I ask a CA about Form 15CA or 15CB?

Ask whether each form applies to your payment, and which limits and timing apply on the Income Tax Department e-filing portal. The sources name both forms, but their requirements were not verified for this article.

Is this article legal or tax advice?

No. This article is general information, not legal or tax advice. Templates are informational and not legal advice. Consult a qualified advocate for power-of-attorney matters, and a Chartered Accountant for TDS and Form 15CA/15CB.

This article is general information, not financial, tax or legal advice. Figures are approximate and change over time — always verify with a qualified professional or the official source before making a decision.

Written and reviewed by the Rent Agreement Generator editorial team. Facts checked against primary sources; see the reference above.

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