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Rental Income Taxation
Complete 2025 Guide
Tax rules for rental income from Indian properties
Last Updated: 2025-01Applies to: 🇺🇸 🇬🇧 🇨🇦 🇦🇺 🇸🇬
Tax on Rental Income
NRIs are taxed at 30% on rental income from Indian property. Standard deduction of 30% available on gross rent. Municipal taxes also deductible.
TDS by Tenant
Tenants must deduct TDS at 30% before paying rent to NRI landlords. Monthly TDS deposit required.
Filing Requirements
NRIs must file ITR in India if rental income exceeds basic exemption limit. Return filing deadline is July 31.
DTAA Benefits
Tax paid in India can be claimed as credit in your country of residence under Double Taxation Avoidance Agreement.
Important Warnings
- Tenant must deduct 30% TDS
- File ITR even for loss scenarios
- Keep rent agreements and payment records
- Report foreign income in home country