What TDS applies on interest or rent paid to an NRI?

Question

tdsguru.in (CA firm) · Accepted Answer

Deduct under Section 195 at the applicable rate (often around 30% for rent and varying rates for interest, subject to DTAA), file Form 15CA/15CB and report in Form 144. Interest and rent paid to a non-resident are covered by Section 195, not the resident sections. Rent to an NRI typically attracts TDS at around 30% (plus surcharge and cess), while interest rates vary by the type of borrowing and the DTAA. The payer needs a TAN, files Form 15CA/15CB before remittance, and reports the deduction in Form 144. A DTAA or a Section 197 certificate can reduce the rate where the NRI's actual liability is lower.