The RBI permits letting out of immovable property owned by NRIs
and PIOs in India and the income earned thereby can be deposited in the Non Resident External (rupee) account. This income is however subject to income
tax.
Conditions pertaining to Renting of Acquired Property
-
Any immovable property can be rented
out, as per RBI directives
-
Rental income is allowed even to those
who do not maintain NRO accounts. However, a certificate from
a Chartered Accountant certifying the eligibility of the remittance
is required and that applicable taxes are paid or provided for.
-
NRIs/PIOs can credit the rent income
to their NRE rupee account, after providing for tax. Again,
that this income represents current income of the account holder
has to be certified for by the authorized dealer.
