GST & TDS on Property Rent in Maharashtra – Resident & NRI Landlord Guide

🏢 GST & TDS on Renting Property in Maharashtra – Complete Guide for Indian & NRI Owners

Renting out property in Maharashtra — whether in Pune, Mumbai, Thane, or Nagpur — involves two key tax components: GST (Goods & Services Tax) and TDS (Tax Deducted at Source). Understanding both is crucial for owners and tenants to stay compliant.

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🧾 What is GST & TDS in Simple Terms

GST (Goods and Services Tax):
A tax on the supply of goods and services — in property terms, it’s charged on commercial rental income if the landlord’s turnover crosses ₹20 lakh in a year.

TDS (Tax Deducted at Source):
A portion of rent the tenant deducts before paying the landlord, directly depositing it to the government. It ensures that the landlord’s rental income is reported and taxed correctly.

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💼 GST on Rental Income in Maharashtra

When GST Applies:

• If property is commercial (office, showroom, warehouse, etc.), and

• Landlord’s total taxable turnover exceeds ₹20 lakh/year.

When GST Doesn’t Apply:

• Residential property for residence → fully exempt.

• Residential used for commercial purpose → GST @18% applicable.

Who Pays GST:

• If landlord is GST-registered → they collect & pay GST.

• If landlord is unregistered and tenant is a GST-registered business, the tenant pays GST under Reverse Charge Mechanism (RCM).

Example (Pune Office Space):
Rent ₹1,00,000/month → GST @18% = ₹18,000 → Total ₹1,18,000.
If landlord not GST-registered → tenant pays ₹18,000 under RCM.

If Property Owner is NRI:
Same GST rules as residents.
NRI can appoint an authorized representative in India.
In most cases, RCM applies, so NRI need not register under GST.

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💰 TDS on Rent under Income Tax Act

For Resident Indian Landlords:

Condition	Section	Rate	Who Deducts	Remarks
Rent > ₹2.4 lakh/year	194-I	10%	Tenant (business)	Residential & commercial
Rent > ₹50,000/month	194-IB	5%	Individual tenant	Personal/residential use

Tenants must deposit TDS online and issue Form 16A/16C to the landlord.

For NRI Landlords (Section 195):

Particular	Details
Applicability	All rent paid to NRI owners
Rate	30% + surcharge + cess (~31.2%)
Who Deducts	Tenant
Compliance	Tenant obtains TAN, deposits via Form 27Q, issues Form 16A
Lower TDS Option	NRI may apply for Form 13 to lower the rate

💡 Example: Rent ₹1,00,000/month → TDS @30% = ₹30,000 → Tenant pays ₹70,000 to NRI and ₹30,000 to Govt.

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🧮 Summary Table

Owner Type	Property Type	GST	TDS	Key Compliance
Resident Indian	Residential (for residence)	❌ No	✅ 10% if > ₹2.4L/year	Form 16A / 16C
Resident Indian	Commercial	✅ 18%	✅ 10%	GST + TDS
NRI	Residential	❌ No	✅ 30%	TAN + Form 27Q
NRI	Commercial	✅ 18% (usually RCM)	✅ 30%	TAN + Form 27Q + GST if applicable

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🏠 Maharashtra Context

Major rental hubs: Pune, Mumbai, Navi Mumbai, Thane, Nagpur, Nashik.
In these cities, corporate and NRI leases are commonly registered and monitored.
High-value rentals often fall under TDS and GST compliance review by authorities.

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⚖️ Important Disclaimer

The above information is general and publicly available online, meant only for basic awareness. Every case differs depending on ownership, tenant type, and lease structure. Always consult a qualified Chartered Accountant (CA) or tax professional before taking any action.

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🧭 Real Estate Consultancy Support

If you’re renting, leasing, or investing in Pune or Mumbai, we provide end-to-end real estate consultancy services including:
• NRI property management & compliance support
• Residential & commercial leasing
• Investment advisory for developers and end-users
• High-ticket property deals and premium investments
• Transaction documentation and hand-holding throughout

📞 Deepak Sundrani
The Guru Realty – Real Estate Consultancy Services
📱 +91-9822052388