Q321. RBI permission not required to rent property in India

Question: Hello,

My name is Prasanna Raya. I am a US citizen and hold a OCI card. I recently

purchased a immovable property(land) in India. Planning to rent it out.

I would like to know the RBI procedures.

1) Please advice me what kind of RBI procedures(tax) does Payer has to go through?

2) What kind of RBI Procedures(tax) should I go through?

Your advice is highly appreciated.

Thanks

Prasanna

Answer: OCI holders who own property in India do not require any RBI permission to rent out their properties in India. Normally it is better to rent out properties to reputable companies and register rental agreements. I have discussed property rental agreements in my book The NRI Guide from page 153, if you don’t have the book, information is certainly available on the Internet from various sources. Rental income is taxed in India depending on your income for the financial year. TDS of around 30% is deducted from the payable rent by the tenant and sent to the appropriate tax authorities.