Tenants need a TAN Investments in real estates have enticed the NRI’s in recent years. The fact remains that maintaining these assets becomes a formidable task for these NRI’s. The tenants of these properties must be aware of tax implications. Under the section 195 of Income-tax Act, it is obligatory on tenant to deduct 30% of monthly rental value at source. This value excludes the figure permitted for repairs. This duty becomes substantial on part of tenant, as the individual has to apply for TAN (tax deduction and collection account number) with the tax department. The individuals carrying TAN card are only eligible for TDS (tax deduction at source). This tax has to be deposited at specific counters of authorized banks, with the TAN no. on the deposit slip. Similar to the Form 16, the tenant has to declare the tax proceeds to the landlord. The responsibility of TDS lies with the tenant. The tenant is subjected for penalty on account of violation of any tax laws. It is important on part of tenant to check that the required form is filed with the assessing officer to waive off the TDS. Than he or she could apply for nil TDS or low TDS. Seen from the NRI’s perspective, the TDS on rentals becomes hassle free for an NRI carrying PAN card. This makes the NRI entitled for rebate under Section 80 C, to claim for reimbursement. The rent is credited to NRI account a little later. In order to reduce the tax burden, filling Form 13 for lower TDS or no TDS lies within the interest of NRI. The refunds could be claimed after filing IT returns. The remittances of rental from NRO account are likely to be questioned for TDS 30%, on account of his failure on this part.