NRIs, your rental income for properties in India is subject to tax in India. While filing taxes you can take a standard 30% deduction on annual value of property, which includes the cost of maintaining the house. Other deductions are home loan interest paid, property and water taxes. Regarding filing of taxes, you don’t need to file until your income exceeds 2 lakhs annually.
Your interest from NRE account, dividend income and interest income from PPF is TAX EXEMPT.
For details on other taxes, check out this NRI Taxes link on Mint (a WSJ partner).
Whether you are an NRI or not, your PAN needs to be furnished if you fit the following criteria…
1. If your tenant is using HRA (House Rent Allowance) from his company AND
2. If your rent is more than 1 lakh per year
When a tenant claiming HRA rents a house, their company furnishes a form which asks for landlord’s name, contact, PAN number and other pertinent details. If the landlord does not have a PAN, they ask you to declare as such.
For the complete article, check out the Mint (A WSJ partner) article
This week, Live Mint (a WSJ partner in India) had an article detailing the nuances with selling property inherited by NRIs.
For the complete article, see link at the end of this post. In short, here’s what needs to be done…
Rest is the regular sales process of hiring an agent and finding buyers.
Read the entire article at Mint How NRIs can sell inherited property in India?
Prime minister Manmohan Singh has announced that NRIs will get a chance to vote in the national elections. The process on how to vote will be laid out soon.
Two more schemes have been enacted – The government will sponsor a new Pension and Life Insurance Fund for overseas Indian workers. This seems to be targeted for low income overseas workers
Again, the government has just announced these plans, stay tuned to find out how to register and benefit from these plans.