Deductor: Any person, paying Rent to Non-Resident shall be responsible for deduction of tax at source under Section 195.
Deductee: Tax shall be deducted if the recipient is a non-resident person and the sum received is chargeable to tax in India by virtue of Income-tax Act or Double Taxation Avoidance Agreements. Since the property is located in India, rental income from the property is taxable in India.
Rate of TDS: Rate of TDS under Section 195 are prescribed in Part II of First Schedule of Finance Act 2022. These rates shall be further increased by applicable Surcharge and Health & Education Cess.
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