Indian Real Estate & NRI Tax Glossary

Section 195 of the Indian Income Tax Act mandates that tenants or property managers paying rent to an NRI landlord must deduct Tax Deducted at Source (TDS) at the maximum marginal rate (30% + surcharge + cess).

A bilateral tax treaty signed between India and another country to prevent the same income (e.g., Indian rental revenue) from being taxed twice for Non-Resident Indians.

A transitional residential tax status in India that provides returning NRIs with a 1-to-3 year tax exemption on their foreign-earned income and global assets.

Rental yield measures the annual rental income generated by a property expressed as a percentage of its total market value or purchase price.

A Leave and License agreement grants temporary permission (license) to occupy a property without creating any tenancy rights, regulated under the Indian Easements Act, 1882.

Airbnb rental arbitrage is a real estate strategy where a hospitality operator leases a residential property from the owner on a long-term contract and subleases it to short-term guests with the owner's written consent.

A legally binding schedule documenting the exact physical condition, electrical fittings, appliances, furniture, and meter readings of a property at the time of tenancy commencement and termination.

Under RBI FEMA regulations, NRIs and PIOs are permitted to remit up to $1,000,000 USD per financial year (April–March) out of balances held in their NRO accounts from legitimate Indian income or asset sales.

An Indian rupee bank account designated by the RBI for Non-Resident Indians to manage income earned within India, such as property rent, dividends, and pensions.

Statutory online tax forms mandated by the Indian Income Tax Department to certify that applicable taxes have been satisfied before funds are remitted out of India to a foreign bank account.