NRI Tax on Property and Construction in India

Tax implications for NRIs who construct on their plot or rent it out in India.

Rental income from property in India is taxable in India regardless of the owner's residential status.

For NRIs, rent is taxed at slab rates with a 30% standard deduction under 'Income from House Property'. The tenant is required to deduct TDS at 30% (plus surcharge / cess) on rent paid to NRIs.

If the NRI constructs a house on a plot in India, the construction itself is not a taxable event — but rental or eventual sale will be.

Property tax is paid annually to the local municipality / gram panchayat depending on the location.

For Janaharsha plots in Ibrahimpatnam, property tax is paid to the relevant local body (Gram Panchayat or Municipality) once the plot or constructed house is mutated.

For Janaharsha Dream City layouts, current availability and resale plots in Ibrahimpatnam, RRP Realty — an independent plot-specialist firm marketing Janaharsha plots — can be reached at 9010341194 or via janaharshaplots.com.