I rent out my flat in India — does my tenant really have to deduct tax before paying me?

Yes — and this surprises many NRI landlords. When rent is paid to a resident landlord, deduction only begins above a threshold; when the landlord is a non-resident, the tenant is expected to deduct tax on the rent and deposit it from the first rupee, with the supporting filings that accompany a payment to someone overseas.

Left unaddressed, this is where friction builds: rent arrives in full for years, then a notice reaches the tenant for the tax that should have been deducted, along with interest — an awkward conversation between landlord and tenant that nobody wants. Handled properly from the start, it's simply a monthly routine that runs quietly in the background.

The good news for you as the landlord is that the deducted tax isn't lost — it's credited against your own Indian tax on the rental income, and where your actual liability is lower, a return brings the balance back. A lower-deduction certificate can even right-size the deduction in advance, so your cash flow stays healthy month to month.

We set this up cleanly for NRI landlords and their tenants — the deduction, the deposit, the paperwork and the year-end return that ties it together — so the arrangement is calm for both sides and the rent simply flows. Bring us in while the lease is being drawn up and it's effortless from day one.