What taxes do NRIs need to pay while buying property?
- Stamp duty & registration fees
- TDS (if applicable) on property purchase from another NRI seller
What taxes apply on rental income?
Rental income is taxable in India. The tenant is required to deduct TDS (generally 30%) before paying rent to the NRI owner.
Can NRIs repatriate rental income abroad?
Yes, after paying applicable taxes, rental income can be repatriated through NRE/NRO accounts.
What about selling property—can NRIs repatriate sale proceeds?
- If purchased with NRE/FCNR funds → Repatriation allowed up to 2 properties.
- If purchased with NRO funds → Sale proceeds can only be deposited into an NRO account, with limited repatriation after approvals.
What is Capital Gains Tax for NRIs on property sale?
- Short-term (within 24 months): Taxed at slab rate.
- Long-term (after 24 months): 20% with indexation benefits.