Legal HubProperty Taxation for NRIs
Property Taxation for NRIs
Complete 2025 Guide
Tax implications on property investment and rental income
Last Updated: 2025-01Applies to: 🇺🇸 🇬🇧 🇨🇦 🇦🇺 🇸🇬
Capital Gains Tax
Long-term capital gains (property held > 2 years) are taxed at 20% with indexation benefits. Short-term gains are added to income and taxed at applicable slab rates.
TDS on Sale
Buyer must deduct TDS at 20% for LTCG or 30% for STCG on property sales by NRIs. Lower TDS certificates can be obtained from income tax department.
Rental Income Tax
Rental income from Indian property is taxable in India at 30% for NRIs. Standard deduction of 30% is available on gross rent.
Double Taxation Avoidance
India has DTAA with many countries allowing NRIs to claim tax credits for taxes paid in India against their home country tax liability.
Important Warnings
- TDS must be deducted by buyer at source
- Rental income TDS at 30% is mandatory
- File ITR in India even for nil tax liability
- Keep all documents for 7 years minimum