Tax Example: Rent

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
Over INR1,000,000 30% - 10,708 25,828
Annual Income Tax Due 1,417 12,546 27,666
Tax Due as % of Gross Income 7.87% 17.43% 19.21%
Source:
Global Property Guide

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.

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.

INCOMTE TAX

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%
 

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