For NRI Owners
NRI Tax Benefits & Obligations
Understand TDS deductions, DTAA relief, income tax filings, and how to repatriate your rental earnings abroad.
This page provides general tax information for NRI property owners. Tax laws change frequently. Consult a qualified Chartered Accountant or tax advisor for personalised advice before making any financial decisions.
TDS on rental income
When an Airbnb host pays rent to an NRI owner, they are required by law to deduct Tax Deducted at Source (TDS) at 30% (plus applicable surcharge and cess) before making the payment. This is under Section 195 of the Income Tax Act. The host must obtain a TAN (Tax Deduction Account Number) and deposit the TDS to the government, then provide you Form 16A as proof of deduction.
Filing an Indian income tax return
NRIs who earn rental income from Indian property must file an Indian Income Tax Return (ITR-2) if total income exceeds ₹2.5 lakh per year. Your rental income is taxable in India regardless of your country of residence. You can claim deductions: a standard 30% deduction on gross rent (for repairs/maintenance), property tax paid, and home loan interest (if applicable).
DTAA — avoiding double taxation
India has Double Taxation Avoidance Agreements (DTAA) with over 90 countries including the USA, UK, UAE, Canada, and Australia. Under DTAA, you typically only pay tax once — either in India or in your country of residence — not both. The mechanism (exemption or credit) depends on the specific DTAA with your country. Consult a tax professional familiar with both jurisdictions.
Repatriating rental income
Rental income credited to an NRO account is repatriable up to USD 1 million per financial year after payment of applicable taxes. You must provide a CA certificate (Form 15CB) and complete Form 15CA before remitting funds abroad. If rent is credited to an NRE account directly (allowed only from rental income), it is freely repatriable without limit.
Key numbers at a glance
30%
TDS rate
30%
Standard deduction
$1M/yr
Repatriation limit
90+
DTAA countries
Common questions
Can the Airbnb host (Indian resident) deduct 30% TDS?
Yes, Section 195 requires the payer to deduct 30% TDS on payments to NRIs. The host can apply for a lower TDS certificate from the Income Tax Department if your effective tax rate is lower due to DTAA benefits.
Is UAE-based NRI rental income tax-free?
The India-UAE DTAA allows India to tax rental income sourced in India. Since the UAE has no income tax, the income is only taxed in India. You pay Indian tax, and nothing in UAE.
What is Form 15CA / 15CB?
Form 15CA is a self-declaration by the remitter (or bank). Form 15CB is a certificate from a Chartered Accountant confirming that taxes have been paid before money is sent abroad. Both are required for most international remittances from NRO accounts.
Can I claim depreciation on my property?
Under Indian income tax law, depreciation is not separately claimable on residential property for rental income. Instead, a flat 30% standard deduction on gross rent is allowed to cover repairs, maintenance, and depreciation.
Need help understanding your tax situation?
Email us — we can connect you with a CA who specialises in NRI taxation.