Simplifying Income Tax for NRIs with Expert Services
A guide on managing Indian income, TDS on rent, and filing returns as an NRI.
The Discussion
Sameer (NRI based in Dubai)
Hi, I moved to Dubai three years ago and became an NRI. However, I still earn rent from my apartments in Bangalore and have fixed deposits in India. Do I have to file taxes in India?
CA Expert (Aftab & Associates)
Hello Sameer! Yes, as an NRI, any income that accrues or arises in India—like your rental income and interest from Indian FDs—is taxable in India. You must file an Indian Income Tax Return if this income exceeds the basic exemption limit.
Sameer (NRI based in Dubai)
My tenant said he has to deduct TDS on the rent. Is that correct?
CA Expert (Aftab & Associates)
Yes, your tenant is legally required to deduct TDS at 30% (plus surcharge and cess) on rent paid to an NRI under section 195. Our NRI taxation services can help you apply for a lower TDS deduction certificate if your actual tax liability is much lower, ensuring your cash flow isn't locked up.
Quick Knowledge Check
What is the TDS rate generally applicable on rental income paid to an NRI?
Glossary of Terms
- NRI (Non-Resident Indian)
- An Indian citizen who has resided in India for less than 182 days during the course of the preceding financial year.
- TDS under Section 195
- Tax Deducted at Source on payments made to Non-Resident Indians or foreign entities.
- Lower Deduction Certificate
- A certificate obtained from the Income Tax Assessing Officer to deduct TDS at a rate lower than the standard specified rate.
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