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 ?

  • There are two kinds of accounts that can be termed NRI accounts (NRE and NRO). Which kind do you mean? – Dilip Sarwate Jun 30 '19 at 21:07
  • An NRE account. – Sonu VR Jul 1 '19 at 2:37
  • 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 Sarwate Jul 1 '19 at 10:36
  • @DilipSarwate I don't have any other accounts in India, just this NRE account. – Sonu VR Jul 3 '19 at 2:31

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.

  • so is it against the law if the rent is transferred to the nre account? – Sonu VR Jul 29 '19 at 13:25
  • @SonuVR NRE account is meant to credit foreign income that is not taxable in India – Dheer Jul 29 '19 at 16:43

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