Earning Rental Income in India as an NRI? 🏠 Here’s What You Should Know

Understand taxation, TDS, deductions, and how to repatriate your rental income.

If you're an NRI earning rental income from property in India, it's important to know how it’s taxed — and how you can optimize what you keep.

Here’s a simple breakdown to help you stay compliant and make the most of your earnings:

🧾 How Is Rental Income Taxed for NRIs?

Rental income from property in India is considered India-sourced income — which means it is fully taxable in India, even if you live abroad.

This income is taxed under the head "Income from House Property", and the final amount is added to your total taxable income in India.

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💸 TDS on Rent Payments to NRIs

If your tenant is an Indian resident, they are legally required to deduct TDS at 30% (plus surcharge & cess) before paying you the rent.

• Tenants must deposit this TDS with the Indian government

• You will receive the remaining net rent

• To claim any refund (if due), you must file your income tax return in India

✅ Deductions Available

The good news? NRIs are eligible for the same deductions as resident Indians on rental income:

• 30% Standard Deduction: Automatically allowed for maintenance expenses — no proof needed

• Home Loan Interest Deduction: If you're paying a home loan, interest can be deducted under Section 24

• Municipal Taxes: Property taxes paid during the year can also be deducted

These deductions can significantly reduce your taxable rental income.

🌍 Repatriation of Rental Income

Want to send your rental income back to your country of residence?

You can easily repatriate up to $1 million per financial year from your NRO account — provided you’ve:

1. Paid applicable Indian taxes

2. Filed your ITR for the year

3. Submitted Form 15CA/CB for compliance

Filing your return ensures clean documentation and smoother fund transfers abroad.