If you’re living abroad and want to rent out your property in India, it can be a great way to earn extra income. But doing it from another country can feel confusing. This simple guide will help you do it smoothly and legally.
Step 1: Know Your Rights
As an NRI, you are allowed to rent out your house, apartment, office, or shop in India. You just need to pay tax on the rent you earn, but you can also claim some deductions.
Step 2: Choose the Right Property
You can rent out your flat, villa, shop, or office. Agricultural land is usually not allowed to be rented out by NRIs unless local laws say otherwise.
Step 3: Give Power of Attorney to Someone You Trust
Since you’re not in India, it’s smart to give legal permission to a trusted person like a family member or lawyer to manage your property. This person can visit the property, deal with tenants, and sign papers on your behalf.
Step 4: Decide the Right Rent
Check how much similar properties in the area are being rented for. You can look at websites like 99acres or MagicBricks, or talk to a local broker. Set a fair rent that isn’t too high or too low.
Step 5: Get the Property Ready
Make sure the home or office is clean and in good shape. Fix any plumbing or painting work. If needed, add basic furniture, especially if you want to rent to working people or families.
Step 6: List the Property Online or Use a Broker
Put your property on websites like Housing.com, NoBroker, or MagicBricks. You can also go through a trusted real estate agent who can find tenants for you.
Step 7: Check Who the Tenant Is
Always check the tenant’s ID and job details. In many places, it’s also required to do a police check of the tenant at the local police station.
Step 8: Make a Rental Agreement
Write down everything in a rental agreement, like the rent amount, deposit, how long the tenant will stay, and who will pay for repairs and bills. Register this agreement at the local office if it’s for more than 11 months.
Step 9: Use an NRO Bank Account for Rent
Make sure your rent is deposited into your NRO (Non-Resident Ordinary) bank account in India. This is legally required and helps you handle your income smoothly and file your taxes without trouble.
Step 10: Pay Tax on Rent in India
Even if you live outside India, you must pay tax on the rent you earn in India. You can also claim some deductions, like 30% of the rent and home loan interest. File the ITR-2 form every year.
Step 11: Send the Money Abroad (If You Want)
If you want to transfer the rent money abroad, you can send up to 1 million US dollars in a year from your NRO account. You’ll need to pay tax and fill two forms called 15CA and 15CB. A tax expert in India can help with this.
You can manage the property on your own or choose to hire a property manager to take care of everything for you. With a bit of planning and the right help, renting out your property from abroad can be smooth and rewarding. Make sure to stay updated on any changes in local rules or market trends. Keeping good communication with your tenant also makes things easier in the long run. To get More Clarity you can even Check link Below.
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