Managing a Chandigarh rental from abroad: the 2026 NRI owner's guide

• 30%TDS on rent to an NRI+ surcharge and 4% cess; no threshold
• 393(2)Replaced Section 195Income-tax Act, 2025, from 1 Apr 2026
• 144New quarterly return formwas Form 27Q
• 7thTDS deposit deadlineof the following month

Most guidance written for NRI landlords in India is out of date in a way that is easy to miss, because the money is unchanged and only the labels moved. If your chartered accountant, your tenant or your own reading still refers to "Section 195 TDS" and "Form 15CA", they are describing a statute that was repealed on 31 March 2026. The obligations survive under new numbers. This guide is written for an owner of a flat in Chandigarh, Mohali or Panchkula who lives outside India and wants the thing let, lawfully, without a broker and without a monthly crisis.

Who deducts the tax when an NRI rents out a flat in India?

The tenant does, and this is the single most misunderstood point in the whole arrangement. When the landlord is a non-resident, tax is deducted at source by the person paying the rent, under Section 393(2) of the Income-tax Act, 2025 — the provision that carries forward the old Section 195. It applies from the first rupee. There is no monthly or annual threshold of the kind that exists for rent paid to a resident landlord.

Practically, this has consequences you should plan for rather than discover:

• The tenant generally has to obtain a TAN (Tax Deduction and Collection Account Number) to deposit the tax. A salaried tenant renting from a resident landlord never has to do this, so expect it to be a genuine objection during negotiation.
• The tax must be deposited by the 7th of the following month.
• The tenant files a quarterly statement in Form 144 (previously Form 27Q) and issues you a TDS certificate in Form 131 (previously Form 16A). You need that certificate to claim credit.
• If the tenant does not deduct, the exposure sits with the tenant — interest and penalty — not with you. That is exactly why an informed tenant may walk away from an NRI-owned flat. Say it up front and price it in.

What changed on 1 April 2026, and what did not?

The Income-tax Act, 2025 replaced the 1961 Act with effect from 1 April 2026. Most TDS rates and thresholds were carried over substantially unchanged; the architecture was consolidated, so many scattered sections collapsed into a few. Here is the mapping that matters to a non-resident landlord.

One change is worth raising with your CA specifically. Under the old law, a landlord whose actual tax liability was well below 31.2% could apply under Section 197 for a lower — or nil — deduction certificate, which is the standard fix for an NRI whose Indian rental income is modest. The successor provision is Section 395, applied for in Form 128, and its scope is wider in one respect: it is no longer restricted to specified payments. But commentary at the Bill stage flagged that the wording provides for deduction at a lower rate rather than nil. If a nil certificate is central to your plan, get that confirmed for the current year before you rely on it.

Do I have to file an Indian tax return if TDS has already been deducted?

Usually yes, and usually in your favour. Deduction at 30% plus surcharge and cess is a flat withholding on gross rent. Your actual liability is computed on income from house property — that is, after the standard 30% statutory deduction on net annual value, after municipal taxes actually paid, and after interest on a home loan where applicable. For a great many NRI landlords the tax finally payable is materially lower than the amount withheld, and the difference comes back only if a return is filed. Treat the TDS as an advance, not a settlement.

Where does the rent have to be paid, and can I take it out of India?

Rent from Indian property received by a non-resident is credited to an NRO account. From there:

• Rent is current income, and current income is repatriable from an NRO account without the USD 1 million per financial year ceiling. That ceiling applies to capital items — most commonly the proceeds of selling the property. This is a distinction a lot of published summaries get wrong by collapsing the two.
• Repatriation runs through your authorised dealer bank against Form 145 and, where required, a chartered accountant's certificate in Form 146.
• Taxes have to be paid or provided for before the remittance goes out. That is what the accountant is certifying.

How do I actually run the flat from another country?

The tax is the part people worry about. The part that goes wrong is the geyser. Four decisions carry almost all of the operational risk:

1. Appoint a real attorney, on paperGive a specific, registered power of attorney to one person in India — a sibling, a parent, a paid manager. Keep it narrow: let, collect, sign an agreement, deal with utilities. A broad POA that also permits sale is a liability, not a convenience.
2. Take rent only by bank transferInto the NRO account, on a fixed date, with the flat's address in the reference. Cash creates a rent history you cannot prove and a TDS trail that does not exist.
3. Set a repair threshold in advanceGive your attorney standing authority to spend up to a fixed amount — many owners use ₹5,000 — without calling you, against a photograph and a bill. Everything above it needs approval. Without this rule, small problems wait for a time zone and become large ones.
4. Insist on written verificationThe tenant's ID, the signed agreement, and completed tenant verification with the police. Ask for photographs of the flat at handover and at every renewal. You are not there to see the wear.

On the local legal frame: Chandigarh, Mohali and Panchkula sit in three different jurisdictions, and the tenancy statute that governs your flat is not the one most articles assume. We set that out in detail in which rent law actually applies in Chandigarh, Mohali and Panchkula. The deposit norms, agreement mechanics and police verification steps are covered in security deposit, rent agreement and police verification in the Tricity.

Should an NRI use a broker, a management company or a listing platform?

Be clear-eyed about which problem each option solves. A full-service management firm solves the ground problem and charges for it, typically as a share of monthly rent. A broker solves the finding-a-tenant problem once, for a fee, and disappears. A listing platform solves discovery and gives you direct contact with tenants, which is the part that repeats every eleven months.

Hoomzz is the third of those, and we would rather be precise about it than oversell: Hoomzz is a listing platform, not a broker and not a property manager. Listing a property for rent in Chandigarh, Mohali, Panchkula, Zirakpur or Kharar is free, we take no brokerage from either side, and enquiries come to you directly. What Hoomzz does not do is hold your keys or meet your plumber — that is what the person with your POA is for. If that division suits you, you can list your property free on Hoomzz; our broader comparison of the channels is in where to list your property for rent in the Tricity.

Frequently asked questions

What is the TDS rate on rent paid to an NRI landlord in 2026?

30% plus applicable surcharge and 4% health and education cess — commonly 31.2% where no surcharge applies — deducted from the first rupee of rent, with no threshold. It is deducted under Section 393(2) of the Income-tax Act, 2025, the provision that replaced Section 195 with effect from 1 April 2026.

Does the tenant need a TAN to pay rent to an NRI?

Yes, generally. Deduction on a payment to a non-resident is made against a TAN, unlike the resident-landlord route where an individual tenant can deduct using PAN alone. Expect this to be a point of friction and disclose it before the agreement is signed.

Has Form 15CA been replaced?

Yes. Under the Income-tax Act, 2025, Form 15CA became Form 145 and Form 15CB became Form 146 with effect from 1 April 2026. Form 27Q became Form 144 and Form 16A became Form 131. The underlying requirements are substantially unchanged.

Can an NRI repatriate rental income from India?

Yes. Rent is treated as current income and can be repatriated from an NRO account without the USD 1 million per financial year limit, which applies to capital items such as sale proceeds. Repatriation is processed by your authorised dealer bank against Form 145 and, where required, an accountant's certificate in Form 146, after taxes are paid or provided for.

Can an NRI reduce the 30% TDS on rent?

By applying for a certificate for deduction at a lower rate under Section 395 of the Income-tax Act, 2025 in Form 128 — the successor to Section 197 and Form 13. Confirm with your chartered accountant whether a nil certificate remains available for the current year, as the new provision is framed around a lower rate.

Do I need a power of attorney to rent out my flat in Chandigarh from abroad?

Not strictly to let a property, but in practice yes. A specific, registered power of attorney authorising one person to show the flat, sign the agreement, handle utilities and deal with repairs is what makes remote ownership workable. Keep the powers narrow and avoid including a power to sell.

Is a rent agreement signed from abroad valid?

An agreement executed by your attorney under a valid registered power of attorney binds you. Have the agreement stamped and, where the term requires it, registered in the correct jurisdiction — the rules differ between Chandigarh, Punjab and Haryana.

Rules, sections and forms cited on this page

Statute. The Income-tax Act, 1961 stood repealed on 31 March 2026 and the Income-tax Act, 2025 came into force from 1 April 2026. TDS provisions were consolidated: Section 392 covers salary, Section 393 covers other payments, with Section 393(1) carrying the former Section 194-I (rent) and Section 393(2) carrying the former Section 195 (payments to non-residents). Rates and thresholds were largely carried over unchanged.

Rate. 30% plus applicable surcharge and 4% health and education cess on rent paid to a non-resident, from the first rupee, with no threshold. Deposit by the 7th of the following month.

Forms. 27Q → 144; 16A → 131; 15CA → 145; 15CB → 146; Form 13 → Form 128 (lower-deduction certificate under Section 395, formerly Section 197).

FEMA. Current income such as rent is repatriable from an NRO account without the USD 1 million per financial year ceiling; that ceiling applies to capital items including sale proceeds.

This is general information, not tax advice. Surcharge depends on income slab, DTAA relief depends on your country of residence and a tax residency certificate, and the transition year has moving parts. Confirm your position with a chartered accountant before you act on it.