NRI rental income : Rs.16000 pm

This query is : Resolved

CA Sireesh Rao (Querist)
Follow

31 December 2009 Hi

My client is an NRI who purchased a flat in Bangalore out of his foreign remittance.

The flat will be let out for rent effective Jan '10. Rental income is Rs.16000 pm.

Currently my client has no other income.

What is the tax liability to my client. Since,the income is less than the maximum amount not chargeable to tax. Is he exempt from filing return?

Rakesh Jain

Rakesh Jain (Expert)
Follow

31 December 2009 Since income is below taxable limit. it is Exempted.

CA Sireesh Rao

CA Sireesh Rao (Querist)
Follow

01 January 2010 Thanks. But, looking at taxability, since he is not a resident,THe tax rates does not apply. Should he be paying maximum marginal tax ie.30% and education cess?