Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less Municipal Taxes2		(478)	(2,226)	(4,515)
Less Costs (30%)3		(5,257)	(20,932)	(41,846)
= Taxable Income		12,265	48,842	97,640
Income Tax Rates4
Up to INR100,000	nil	-	-	-
INR100,000 – INR150,000	10%	142	142	142
INR150,000 – INR250,000	20%	870	870	870
Over INR250,000	30%	419	11,392	26,031
= Income Tax Due		US$1,431	US$12,404	US$27,043
Additional Taxes
Surcharge5	10%	-	1,240	2,704
Education cess6	2%	29	273	595
Annual Income Tax Due		US$1,460	US$13,917	US$30,342
Tax Due as % of Gross Income		8.11%	19.33%	21.07%
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on Nov 15, 2006.

Notes

Grant Thornton India is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

¹ The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: US$1 = INR46.

² Estimated values only.

³ The 30% deduction is applicable to the annual rent arrived at after deducting the municipal property taxes. This standard deduction covers the repairs and maintenance costs.

⁴ The tax bands used for the computation of the wife’s income are as follows:
Up to INR135,000 (0%)
INR135,000 – INR150,000 (10%)
INR150,000 – INR250,000 (20%)
Over INR250,000 (30%)

⁵ This is applicable only in cases where income exceeds INR1,000,000 (US$21,739).

⁶ All taxpayers are liable for the education cess levied on the income tax liability at 2%.