Can an NRI rent out an apartment he has bought in India ?
Yes. He can either opt for repatriation of the rental income or it can be credited to the NRO account. If he wants to remit the funds, he can do so via his authorised dealer or bank. This rent will be taxable subject to the following deduction: Repairs and collection charges: 1/4th of the Net Annual Value (rent- municipal taxes) irrespective of the amount actually spent Insurance premium: Amount of premium actually paid to insure the property against risk to damage or destruction is allowed fully Ground Rent: Payable only in case of leasehold property. Ground rent allowed on accrual basis whether paid or not.
