NRIs and Taxes

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).

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