Renting out a flat from abroad

Yes. A payment of rent to a non-resident falls under Section 393(2), Table Serial No. 17, of the Income-tax Act, 2025, at the rates in force. For an individual landlord, the general rate is 30 per cent plus surcharge where it applies and 4 per cent cess, which is 31.2 per cent on ordinary rents.

The relaxation from 1 October 2026 for buyers of property from non-residents does not cover rent. The simpler Form 141 rent schedule relates to residents under Section 393(1). So a tenant paying rent to a non-resident should plan on getting a TAN and filing the TDS statement for non-resident payments.

You can apply in Form 128 for a certificate of lower or nil deduction under Section 395(1) of the Income-tax Act, 2025. The Assessing Officer may issue one if your expected income justifies it. Your tenant then deducts at the certificate rate for the period it covers. Otherwise, claim any excess by filing a return.

Yes. Section 55 of the Maharashtra Rent Control Act, 1999 requires any agreement for leave and licence or letting of premises to be in writing and registered, and puts the responsibility on the landlord. If the agreement is not registered, the landlord can face penalties, and the tenant’s version of the terms can prevail.

Rent can be credited to an NRO account. RBI’s Master Direction also treats rent as a permitted credit to an NRE account when the bank is satisfied that it is your current income and that tax has been deducted or paid. Ask your bank which it will accept and what proof it needs.

Section 22 of the Income-tax Act, 2025 allows a deduction of 30 per cent of the annual value, plus interest on a loan taken to buy, build or repair the property, subject to the conditions of that section. The annual value is worked out after property tax paid. File a return to claim any refund.