Income tax liability for house rent for person with no indian salary

No he would not be liable to tax provided Your Rent Income does not gross the basic exemtion limit .

Hi Saurabh,

If your Brother Income exceeds the basic exemption limit i.e. 2.5 lakhs, then he shall be liable to pay Income tax under the Indian law due to the fact the property is own in his name.

Hey,

You can find your answer here in this video

https://www.youtube.com/watch?v=SnAVZ290SWo

This rental income will be taxable in your brother's hands as per Indian income tax law. However, if the total income (including this rental income) for the entire year is below INR 2.5 lacs, then your brother need not file a tax return in India, even if he files a return, there will not be any income tax liability. 

You can show this rent in your HRA tax calculation to your employer. Ensure you pay by cheque and fund transfer is clearly evident in bank statement. 

Since your brother is an NRI, you need to deduct TDS @ 30.90% from each rent payment and deposit in government account using ITNS 281 and file TDS return in Form 27Q - your brother can claim this TDS after filing his tax return in India.

On a safer side, ensure you and your brother have an agreement documenting term of lease and rent amount, to produce to an assessing officer in case of enquiry. 

From a US tax perspective, your brother will have to also offer this rental income from India in his USA tax return and pay applicable tax in USA.