Income tax on rent, worked example, in India
October 18, 2018
|Non-resident couple´s rental income1|
|Monthly Rental Income||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|Less Expenses (30%)3||5,400||21,600||43,200|
|= Taxable Income||12,600||50,400||100,800|
|Income Tax 4|
|Up to INR200,000||nil||-||-||-|
|INR200,000 - INR500,000||10%||368||368||368|
|INR500,000 - INR1,000,000||20%||1,049||1,471||1,471|
|Annual Income Tax Due||1,417||12,546||27,666|
|Tax Due as % of Gross Income||7.87%||17.43%||19.21%|
Global Property Guide
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1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 68.00 INR
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at progressive rates.
|TAXABLE INCOME, INR (US$)||TAX RATE|
|Up to 200,000 (US$ 3,676 )||0%|
|200,000 - 500,000 (US$ 7,353 )||10%|
|500,000 - 1,000,000 (US$ 14,706 )||20%|
|Over 1,000,000 (US$ 14,706 )||30%|