Income tax on rent

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This query is : Resolved

Brijesh Gupta (Querist)

08 July 2018 I am an NRI based in UAE earning 5lakhs annual rental income from lease of my apartment in India . 30 of rental income is allowed as deduction for income tax calculations . My tax liability on the balance income of Rs 3,50,000/- is Rs 10000/- Can I repatriate in foreign exchange to my overseas bank account in UAE : Rs 5,00000/- less Tax of Rs 10,000/- i.e. RS 4,90,000/- OR Rs 3,50,000/- being the income after standard 30 deduction and less tax of Rs 10,000/- i.e. Rs 3,40,000/- Please advise .

ALOK GOEL

ALOK GOEL (Expert)

09 July 2018 This is your inr 5 lakh earned in india and it can go to your NRO account only in india. However in UAE , you can transfer it after depositing in NRE account. But for depsiting in NRE account , you need to take permission from RBI through union bank.. Hence better keep this 5 lakh in NRO and pay tax of 10,000/- by ITR filling. And if u donot want to use this money in India then you can ask Bank to shift from NRO to NRE account ( Normally Bank ask for RBI clerence for this) then you can transfer to UAE a/c as u mentioned above.You can deposit full 5 lakhs or 4.9 Lakh or less in NRO after paying Tax and file ITR.

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