New Delhi, Oct. 13 -- If your landlord is a non-resident Indian, you must know some income tax rules that can affect you as a tenant. From the rent you pay to your NRI landlord, you must deduct a certain percentage of the rent at source-tax deduction at source, or TDS-and pay to the Indian government. If you do not deduct the tax and pay that to the government, you may be held liable for that amount plus interest and penalty.

TDS provisions on rent to a resident landlord are simpler and do not apply unless the monthly payout exceeds Rs.50,000. In the case of NRI landlords, any rent amount is subject to TDS.

Even when TDS is applicable for a resident landlord, the rate is only 2% of the rent paid for an entire financial year. That amount...