I'm residing in USA and have some property in India. An acquaintance of mine who is residing in Dubai has rented that property. Can he send the rent to the NRE bank account I had taken for while I was coming to USA ? I understand that for the money I send to my NRE account from USA will fall under TDS. But how will the money sent from Dubai by my acquaintance be taxed ? Should I pay taxes for those ?
asked Jun 30, 2019 at 13:59
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There are two kinds of accounts that can be termed NRI accounts (NRE and NRO). Which kind do you mean?– Dilip SarwateCommented Jun 30, 2019 at 21:07
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An NRE account.– Alejandro VargasCommented Jul 1, 2019 at 2:37
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So, why not edit your question to add this information to the question itself? Also, have you converted your other accounts in India to NRO accounts or are you keeping them as ordinary Indian savings accounts?– Dilip SarwateCommented Jul 1, 2019 at 10:36
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@DilipSarwate I don't have any other accounts in India, just this NRE account.– Alejandro VargasCommented Jul 3, 2019 at 2:31
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2 Answers
Rental income is taxable in India. I suggest you open an NRO account and have the rent deposited there.
Transfer into NRE are tax free in India.
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so is it against the law if the rent is transferred to the nre account? Commented Jul 29, 2019 at 13:25
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@SonuVR NRE account is meant to credit foreign income that is not taxable in India– DheerCommented Jul 29, 2019 at 16:43
If you are paying taxes in the US, then you are required to declare on your US tax return all of your worldwide income, including this rental income. This is independent of which account the money is paid into.
answered Aug 22, 2020 at 1:43
