Non-Resident Property Tax in India: What You Need to Know

When you own property in India but live overseas, you’re subject to non-resident property tax, tax obligations on Indian real estate income for people living outside India. Also known as NRI property tax, it’s not optional—it’s enforced by the Income Tax Department, and ignoring it can lead to penalties, frozen bank accounts, or trouble selling your property later. This isn’t about paying more—it’s about paying correctly. Many non-residents assume they’re exempt because they don’t live in India, but the law doesn’t care where you sleep. It cares where your money comes from.

If you rent out your property in India, that rental income is taxable. The tenant or property manager must deduct TDS (Tax Deducted at Source), a mandatory tax withheld by the payer before paying rent to a non-resident at 30%—sometimes higher if you don’t have a PAN card. You can’t just ignore this. Even if you’re not filing taxes abroad, India still wants its share. And if you sell the property? capital gains tax, tax on profit from selling real estate kicks in. Long-term gains (after 2 years) are taxed at 20% with indexation, short-term at your income tax slab rate. There’s no escape just because you’re living in Dubai, Toronto, or London.

Here’s what most non-residents miss: you can reduce your tax burden legally. If you’re earning rent, you can claim deductions for property maintenance, municipal taxes, and even a standard 30% deduction on net rent. If you’re selling, you can reinvest in another Indian property to defer capital gains. And yes, you can file tax returns from abroad—many NRIs use online portals or hire local chartered accountants for under ₹10,000 a year. It’s not complicated. It’s just ignored.

What you’ll find below are real, practical posts that break down exactly how this works. You’ll see how rental income is calculated, what forms you need to file, how TDS works in practice, and how to avoid being overcharged by property managers. There’s no theory here—just what you need to know to protect your investment and keep more of your money. Whether you own a flat in Bangalore, a plot in Pune, or a villa near Chennai, the rules apply the same. Don’t guess. Don’t assume. Get clear.