Property
India — Property: Rental Market
Under RBI rules, balances in the NRO account of an NRI or PIO can be remitted abroad up to USD 1 million per financial year (April to March) along with their other eligible assets, under the Foreign Exchange Management (Remittance of Assets) Regulations 2016. An NRO account can be debited for local payments, transfers to other NRO accounts and remittance of current income abroad, and remittance of current income such as rent requires the authorised dealer bank to be satisfied that income tax and other taxes in India have been paid. An NRI without an NRO account can remit rent through a bank with a Chartered Accountant's certificate that the amount is eligible and taxes are paid or provided for. Check the Income Tax Department for how rental income is taxed.
Key facts
- NRO balances can be remitted abroad up to USD 1 million per financial year (April–March), together with other eligible assets.
- Current income such as rent can be remitted abroad only after the authorised dealer bank is satisfied that Indian income tax and other taxes have been paid.
- An NRI without an NRO account can remit rent via a bank with a Chartered Accountant's certificate that the amount is eligible and taxes are paid or provided for.
Common mistakes
- Remitting rent before taxes are paid — the bank must be satisfied about tax payment first.