Rental Income Taxation for United States NRIs
Complete 2025 guide for United States-based NRIs investing in Indian real estate.Tax rules for rental income from Indian properties
United States NRI Quick Facts
NRIs from USA can invest in residential/commercial properties in India under FEMA regulations. LRS limit of $250,000/year applies.
Rental Income Taxation for United States NRIs
Rental income from Indian property is taxable in India at a flat 30% rate for NRIs. A standard deduction of 30% is automatically allowed for repairs and maintenance.
TDS on Rental Payments
Tenants must deduct TDS at 30% when paying rent to NRI landlords. The NRI can file returns to claim refund if actual tax liability is lower.
Reporting in United States
You must report global income including Indian rental income in United States. The DTAA allows you to claim tax credit for Indian taxes paid.
Repatriation of Rental Income
Net rental income (after taxes) can be freely repatriated to United States. Banks require Form 15CA/15CB certification for remittance above ₹5 lakhs.
Required Documents
- Rental agreement
- PAN card
- TDS certificates (Form 16A)
- Bank statements
- Form 15CA/15CB for repatriation
Important Notice
Laws and regulations may change. Always consult with a qualified legal professional before making investment decisions. EstateKart provides general guidance only.
Frequently Asked Questions
How much tax do I pay on rental income?
Flat 30% after 30% standard deduction. So effective tax is about 21% of gross rent.
Can I transfer rental income to United States?
Yes, after paying applicable taxes, you can freely repatriate rental income.
Who deducts TDS from my rent?
Your tenant is responsible for deducting 30% TDS and depositing with the government.
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