Indian expats in UAE: How is your rental income from your property taxed back home?

Indian expats in UAE: How is your rental income from your property taxed back home?

Dubai: If you are a Non-Resident Indian (NRI) who has rented out a property to tenants in India, you may be wondering what the tax is on the rental income you earn. When it comes to taxation, the government of India seeks taxes on almost all the earnings made by resident Indians as well as non-resident Indians within the country. According to Indian law, any individual whose income exceeds a specific slab (as per the tax brackets existent during that financial year), irrespective of their citizenship status, is required to file an income tax return in the country. “While income from a property which is located in India is taxable, keep in mind that the tax being calculated is just as much for a resident Indian,” said India-based tax consultant Brijesh Meti. “If an NRI decides to rent out their India-based property, the rent proceeds of these are credited to the NRE accounts after paying taxes and can easily be repatriated.” (While the interest on a Non-Resident External Rupee (NRE) account is exempt from tax, the interest on a Non-Resident Ordinary Rupee (NRO) account is subject to normal taxation in India.) But before you understand how to calculate taxable rental