Income tax on rent, worked example, in India
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| 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 |
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Notes
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 |
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| 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% | |
