Rent Repatriation for NRIs: NRO Account Rules, TDS & RBI Guidelines Explained

Earning Rental Income in India as an NRI

NRIs owning residential or commercial real estate in Bangalore can legally rent out their properties and transfer the income to their overseas bank accounts under Reserve Bank of India (RBI) FEMA guidelines.

Key RBI Rules & Account Types

• NRO (Non-Resident Ordinary) Account: Rental income earned in India MUST be deposited into an NRO account.
• Repatriation Limit: NRIs can repatriate up to USD 1 Million per financial year from their NRO accounts after fulfilling tax obligations.

TDS Rules for Tenants Renting from NRI Landlords

Under Section 195 of the Income Tax Act, tenants renting property from an NRI landlord are legally obligated to deduct 31.2% TDS (tax plus surcharge) before remitting rent, unless the landlord possesses a Lower Tax Deduction Certificate from the IT department.

Steps for Remitting Funds Abroad

1. Maintain proper lease agreements and rent receipts.
2. File Form 15CA online via the e-Filing tax portal.
3. Obtain Chartered Accountant (CA) certification via Form 15CB.
4. Submit documents to your NRO bank branch for international wire transfer.

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