India – Property Letting

How does the property letting process work in India?

India’s rental sector has a long history of operating without formal structures — verbal understandings, handwritten notes, widely varying deposit demands, and unpredictable rent increases were common features, leaving both landlords and tenants uncertain about their rights. That landscape is changing materially. Reforms introduced under the 2025 framework aim to standardise tenancy contracts, mandate digital documentation and registration, and establish clear protections alongside dedicated mechanisms for resolving disputes.

The practical starting point for any landlord is finding a suitable tenant. Most property owners market through established portals such as MagicBricks, 99acres, and Housing.com, or engage a local letting agent. Once a candidate has been identified, thorough due diligence is essential. Prospective tenants are expected to provide an Aadhaar card, PAN card, or passport for identity verification; supporting address proof such as a utility bill or bank statement; and recent passport photographs.

Police verification of a tenant before they move in is one of the most consequential steps in the onboarding process. It creates a formal official record of who occupies the property and shields the landlord from potential liability should problems arise later. The precise procedure differs across states — in Delhi, for example, both rental agreement registration and police verification of tenants are mandatory requirements, with online processes available to facilitate both.

Once a tenant has been selected, a written tenancy agreement must be drawn up. Under the 2025 rules, verbal or undocumented arrangements carry no legal validity whatsoever. A compliant agreement must clearly identify both parties, state the full property address, set out the agreed rent and payment schedule, record the deposit held, and specify notice and renewal terms. The agreement must carry a digital stamp and be registered online within 60 days of being signed; failure to register within this window risks a penalty starting at ₹5,000 and may render the agreement unenforceable (as of 2025).

The traditional 11-month tenancy term remains widespread in India. Historically, this structure was used to fall beneath the registration threshold that applied to longer leases, though under the 2025 framework registration is compulsory regardless of how long the agreement runs. Registration is administered at the state level through Sub-Registrar offices or dedicated state online portals, rather than through any centralised national system.

1. Advertise the property on major property portals or through a local letting agent.
2. Vet prospective tenants — collect ID documents, address proof, employment details, and references.
3. Arrange police verification of the tenant through the local police portal or station, as required in your state.
4. Draft a written tenancy agreement covering rent, deposit, duration, notice periods, maintenance responsibilities, and permitted use.
5. Apply a digital stamp to the agreement using e-stamp paper, available through your state government’s portal.
6. Register the agreement within 60 days — either online through the relevant state registration portal or in person at the Sub-Registrar office.
7. Collect the security deposit within the legal cap applicable in your state.
8. Hand over possession and ensure rent payment arrangements (ideally digital, to create a documented trail) are in place.

In certain apartment complexes or gated housing societies across India, landlords may additionally need to secure a No Objection Certificate (NOC) from the residents’ welfare association or managing committee before the tenancy can proceed, confirming that the incoming tenant will have no impediment to accessing shared common areas and facilities.

What types of rental arrangements are available in India — long-term, short-term, and holiday lets?

India’s rental market falls broadly into three distinct categories: long-term residential letting (by far the most common), short-term corporate or transit accommodation, and holiday or vacation rentals listed through platforms such as Airbnb. Each operates under different market norms and, increasingly, different compliance requirements.

Long-term residential letting centres on the standard 11-month agreement described above, with the bulk of the 2025 reform framework directed at this category. It remains the most legally well-defined and widely practised arrangement. Under the 2025 framework, every rental agreement — whether residential or commercial, short-term or long-term — must be formally registered.

Short-term corporate letting — where a furnished apartment is made available to a company for senior employee accommodation — is particularly prevalent in major business hubs including Mumbai, Bengaluru, Delhi NCR, and Hyderabad. These arrangements generally span one to twelve months and fall under the same tenancy registration requirements, though the parties involved typically negotiate more commercially oriented terms. Where total gross rental income from commercial property in any given year exceeds ₹20 lakhs, GST implications must also be considered; other income streams such as interest or residential rental receipts may need to be factored into the threshold calculation.

Holiday and vacation rentals via platforms including Airbnb, StayVista, and SaffronStays represent a rapidly expanding segment of the market, especially in popular tourist destinations such as Goa, Kerala, Rajasthan, and Himalayan regions. Indian homestays typically cover stays ranging from a single night to several months, accommodating tourists as well as business travellers, and may involve entire homes, apartments, or individual rooms within a property.

No single national licensing or regulatory regime currently governs short-term rentals specifically in India. Online platforms facilitating such arrangements are nonetheless expected to ensure that listings comply with national and local laws, including verifying host identities and enforcing safety and zoning standards — platforms such as Airbnb and Booking.com maintain policies to monitor and remove listings that fall short of these requirements. For tax purposes, Airbnb acts as a withholding agent for Indian hosts: with effect from 1 October 2020, the platform deducts 1% of a host’s gross earnings and remits this directly to Indian tax authorities, with a higher rate of 5% applied where the host has not provided a valid PAN.

Landlords considering short-term lettings should also review any restrictions imposed by their housing society or building management, as many residential complexes prohibit short-term subletting. Documentation requirements for such rentals typically include proof of ownership, identity verification, and a no-objection certificate from the housing society or landlord; hosts should also confirm specific registration or permit requirements with local authorities.

What rental income can landlords expect in India, and how are rates set?

In India’s major urban property markets, rental rates are shaped primarily by supply, demand, and local market conditions rather than by any nationally mandated rent register or published benchmark index of the kind found in several European countries. Location, property size, furnishing level, and proximity to commercial districts or technology corridors are the most influential pricing factors. The range of achievable rents is considerable: a two-bedroom apartment in central Mumbai or Bengaluru might command anywhere from ₹30,000 to well over ₹1,00,000 per month, while comparable stock in Tier-2 cities may let for a fraction of those figures. Up-to-date market data for specific localities can be found on portals such as MagicBricks or 99acres.

Some states retain older Rent Control Acts that can, in principle, impose rent ceilings on certain tenancies — particularly legacy lettings predating more recent legislation in states such as Maharashtra and Tamil Nadu. Under such acts, tenants are entitled to pay only a fair and reasonable rent; in Tamil Nadu, for example, annual increases are pegged to fair market rates, while in Maharashtra landlords must operate within government-set guidelines and cannot raise rents mid-tenancy without following the prescribed legal process. These older acts primarily affect a shrinking pool of pre-existing tenancies; the majority of new lettings are now governed by the updated Model Tenancy Act framework.

Under the 2025 reform rules, rent increases are restricted to once per year and must fall within a 5–8% range, with a minimum of 90 days’ advance written notice required before any increase takes effect. Arbitrary or unannounced rent hikes are no longer permissible, and all increase provisions must be incorporated into the tenancy agreement from the outset. Landlords should consult the Ministry of Housing and Urban Affairs and their respective state housing authority for the most current guidance on applicable rent regulation in their specific location, given that rules vary by state and continue to evolve through ongoing legislative activity.

Do landlords need to provide a furnished or unfurnished property in India?

Indian law imposes no statutory obligation on landlords to provide a furnished property for residential letting. The choice is entirely a commercial one, and both fully furnished and unfurnished lets are widely available, with the degree of furnishing generally influencing the rent achievable.

In major urban and metropolitan centres, furnished or semi-furnished apartments — typically including fitted fixtures, white goods such as a refrigerator and washing machine, and basic furniture — command a notable rental premium. Such properties are especially attractive to corporate tenants, short-stay professionals, and international occupants who prefer not to purchase household goods for a temporary posting. Unfurnished or semi-furnished properties are more typical for longer-term family lettings where tenants arrive with their own belongings.

From a taxation standpoint, the entire rental income received — irrespective of whether a furnishing element is included — is treated as income from house property under the Indian Income Tax Act. There is no separate furnished lettings tax classification in India analogous to the Furnished Holiday Lettings regime that formerly applied in the United Kingdom. That said, the furnishing level does affect the gross annual value on which taxable income is calculated, meaning landlords who achieve higher rents through furnishing will have a correspondingly higher taxable base. Under Section 24A of the Income Tax Act, landlords may claim a standard deduction of 30% of the property’s Net Annual Value, which provides partial relief against maintenance and furnishing expenditure.

Landlords letting furnished properties are strongly advised to compile a thorough pre-tenancy inventory — complete with dated photographs and a written schedule of contents — before handing over the keys. This documentation provides the evidential foundation for any deposit deduction claim relating to damage or missing items at the end of the tenancy.

Do you need a licence or registration to let a property in India?

India does not operate a nationwide landlord licensing system of the kind found in certain other countries — there is no equivalent, for instance, to the mandatory landlord registration schemes administered by local councils in Ireland or Scotland. Nevertheless, there are several important registration and compliance obligations that all landlords, including non-resident property owners, must satisfy.

The most fundamental of these is tenancy agreement registration. Every rental agreement — whether for a residential or commercial property — must be formally registered; this can be done online through the relevant government portal or in person at the Sub-Registrar office, and must take place within 60 days of the agreement being signed.

Police verification of tenants constitutes a separate but equally significant requirement. In Delhi, for instance, online registration of the rental agreement is mandatory and confirms its legal enforceability, while tenant police verification is also compulsory and forms part of the broader framework for maintaining law and order. Most other major states impose comparable obligations; landlords should confirm the specific requirements with their local municipal authority or Sub-Registrar office.

Where a property is located within a managed housing society, a No Objection Certificate from the residents’ welfare association may be a prerequisite before any tenancy can commence. This certificate confirms that the association raises no objection to the specified tenant making use of the property’s shared common facilities.

For short-term and holiday lettings, requirements differ between states and municipalities. Documentation generally includes proof of ownership, identity verification, and a no-objection certificate from the housing society where applicable; landlords should always verify the precise local requirements with the relevant housing or municipal authority, as regulations in this area are actively developing.

How do you obtain a landlord licence or register as a landlord in India?

Given the absence of a single national landlord licence, the registration process in practice centres on registering the tenancy agreement and ensuring police verification is duly completed. The steps below reflect standard procedure under the 2025 framework. Requirements, fees, and portal addresses vary by state; always confirm current details with the relevant Sub-Registrar office or state authority before proceeding.

1. Prepare a written tenancy agreement covering all required terms: full names and addresses of both parties, a precise property description, the agreed rent and payment frequency, the deposit amount, the tenancy duration, notice periods, maintenance responsibilities, and the permitted use of the premises.
2. Obtain e-stamp paper of the appropriate value from your state’s Stock Holding Corporation or an authorised stamp vendor. From 1 July 2025, every rental agreement must carry a valid digital stamp; non-compliance may attract a penalty of ₹5,000. Stamp duty rates vary by state, typically falling between 0.25% and 2% of the annual rent value; consult your state revenue department for the current applicable schedule.
3. Execute the agreement in the presence of two witnesses, with signatures — or valid digital signatures — from both the landlord and the tenant.
4. Register the agreement within 60 days: either online through the relevant state registration portal (operational in most major states including Maharashtra, Delhi, Karnataka, and Tamil Nadu) or in person at the local Sub-Registrar office. NRIs can take advantage of online registration facilities provided by Indian registration authorities, which are available to non-resident owners. Registration fees vary by state but are generally modest, ranging from a few hundred to a few thousand rupees.
5. Complete police verification by submitting the tenant’s identification documents and a copy of the registered agreement to the local police portal or station. Online verification portals are available in many states, including Delhi and Maharashtra.
6. Obtain an NOC from your housing society where applicable, before the tenant takes up occupation.
7. For NRI landlords: ensure your PAN (Permanent Account Number) is active and linked to your NRO bank account so that the tenant is able to deduct and remit TDS correctly from rental payments.

Where registration is delayed or omitted entirely, the landlord may face financial penalties and the agreement may be rendered legally unenforceable. Non-resident landlords who need to manage the process from abroad should appoint a trusted local representative under a properly executed Power of Attorney to handle registration and related formalities on their behalf.

What are the rules around deposits in India?

Security deposits have long been a contentious issue in the Indian rental market. In some cities — notably Bengaluru — landlords have historically demanded deposits equivalent to six to twelve months’ rent, placing a significant financial burden on incoming tenants. The 2025 reform framework addresses this directly by introducing explicit caps. For residential properties, the deposit is now capped at 2 months’ rent, while for commercial premises such as offices or retail units, the ceiling is set at 6 months’ rent. Some sources indicate that a 3-month limit applies in non-metropolitan areas rather than the 2-month cap used in larger cities; landlords should verify the precise rule applicable in their state.

Unlike the United Kingdom or Ireland, where government-backed tenancy deposit protection schemes require deposits to be held in authorised third-party accounts, India does not currently have a mandatory centralised deposit protection scheme at the national level. Deposits are typically retained directly by the landlord. Under the 2025 rules, all deposit terms — including the amount held and any conditions governing deductions — must be explicitly stated within the tenancy agreement.

Tenants bear responsibility for damage beyond ordinary wear and tear, and landlords may make proportionate deductions from the deposit to cover such costs. All deductions must, however, be clearly documented and justified. Landlords are strongly advised to record the condition of the property in detail at the outset of the tenancy — using dated photographs and a written inventory — to provide an evidential basis for any deduction claimed when the tenancy concludes.

There is currently no nationally mandated timeframe within which deposits must be returned after a tenancy ends, though the terms specified in the registered agreement are legally enforceable. Disputes over deposit deductions may be referred to the Rent Authority or Rent Tribunal established under the Model Tenancy Act framework, which is designed to offer faster resolution than the general civil courts. Landlords should consult their state’s housing authority for any prescribed deposit return deadlines applicable in their jurisdiction.

Who is responsible for maintenance and repairs in India?

The allocation of maintenance obligations between landlord and tenant has historically been one of the most contested areas of Indian tenancy practice. The 2025 framework brings a considerably clearer structure to this question, requiring that all maintenance responsibilities be explicitly delineated within the tenancy agreement at the point of signing.

Significant structural repairs — covering issues such as roof leaks, plumbing failures, and safety-related faults — remain the landlord’s responsibility. Tenants, by contrast, are expected to handle routine day-to-day upkeep, including minor tasks such as replacing light bulbs and keeping the property clean. This defined split makes it substantially easier to determine accountability when something goes wrong, reducing the potential for protracted disagreements.

Every tenant is entitled to occupy a property that is safe and genuinely habitable. Where a property develops a serious defect — such as a compromised roof or defective electrical wiring — the landlord is obligated to address it promptly upon being notified. Should the landlord fail to carry out essential repairs within 30 days of being informed, the tenant may lodge a formal complaint with the Rent Authority.

This approach broadly mirrors the minimum habitability standards enshrined in rental legislation across a number of other jurisdictions — for example, the obligation to maintain properties in a safe and liveable condition parallels requirements under the Residential Tenancies Acts in Ireland and comparable standards in other countries. What distinguishes India’s model is that these obligations are enforced chiefly through the tenancy agreement and the Rent Tribunal mechanism, rather than through proactive inspection regimes operated by local government bodies.

Landlords are advised to ensure that the agreement sets out maintenance responsibilities in precise terms from the outset, so that both parties have clearly established expectations before any issue arises. It is also important to note that landlords are prohibited from disconnecting electricity, water, internet, or other essential services as a means of pressuring tenants.

How are letting agents used in India, and what do they charge?

Property brokers and professional property management companies occupy an important role in India’s rental ecosystem, particularly in major urban centres. For non-resident landlords overseeing property from overseas, a reliable local agent or property manager is frequently indispensable rather than merely convenient.

Agents typically offer a broad spectrum of services, encompassing tenant sourcing and marketing, tenant due diligence, tenancy agreement drafting, registration assistance, rent collection, maintenance coordination, and ongoing liaison with occupants. Comprehensive property management services — where the agent serves as the primary day-to-day point of contact for the tenant — are increasingly offered by specialist NRI-focused agencies operating across cities such as Mumbai, Bengaluru, Delhi NCR, Chennai, and Hyderabad.

In contrast to the United Kingdom, where letting agents have been prohibited from charging fees to tenants since 2019, or Germany, where the party engaging the broker is generally responsible for the fee, India does not currently operate a nationally regulated fee structure for property brokers. Market convention is that brokerage fees equate to approximately one month’s rent, split equally between landlord and tenant — each contributing half a month’s rent — although this varies notably between cities and is subject to negotiation. In certain markets, particularly Bengaluru, it is not unusual for the tenant to bear the full one-month brokerage fee. Landlords should confirm prevailing local norms directly with agents operating in their specific area, as practice differs considerably across cities (as of 2025).

Ongoing property management fees — where an agent assumes responsibility for day-to-day management on the landlord’s behalf — typically range from 8% to 12% of the monthly rent, though rates vary between providers. Transparency obligations have been tightened under recent regulatory changes, and all fees must be disclosed clearly to the landlord before any management agreement is signed. Landlords should verify an agent’s professional credentials, seek references from existing clients, and ensure that any management contract clearly defines the scope of services, the fee structure, and the notice terms for termination. For NRI landlords in particular, engaging an agent who is registered under the Real Estate (Regulation and Development) Act 2016 (RERA) provides a meaningful additional layer of accountability — registration status can be verified via your state’s RERA portal.

What taxes apply to rental income in India?

Rental income derived from property in India is taxable under the head “Income from House Property” within the Indian Income Tax Act. The tax treatment differs significantly depending on whether the landlord is a resident of India or a non-resident — NRI or foreign — making it essential to establish which category applies before calculating your obligations. From April 2025, rental earnings are classified as “income from housing property,” establishing a cleaner and more transparent framework for landlords.

For resident landlords, rental income is aggregated with total income and taxed at the applicable slab rate under the default new tax regime. Under Section 24A of the Income Tax Act, a standard deduction of 30% of the property’s Net Annual Value is available as relief against painting and maintenance costs. Municipal taxes paid during the year and home loan interest deductible under Section 24B may also reduce taxable income. From April 2025, the new tax regime operates as the default, though eligible taxpayers retain the option to elect the old regime in order to claim additional deductions. Current slab rates are published on the Income Tax Department of India portal.

For non-resident landlords, the mechanism operates differently. NRIs are subject to distinct provisions under the Income Tax Act, most significantly Section 195, which mandates Tax Deducted at Source (TDS) on virtually all categories of income arising in India. Under Section 195, the tenant occupying a property owned by an NRI must deduct TDS at approximately 31.2% — comprising 30% tax, a surcharge, and 4% cess — before remitting rent to the landlord (as of 2025).

Critically, TDS on rent paid to an NRI falls under Section 195 rather than Section 194I, which means the threshold exemption applicable under Section 194I does not apply; TDS must be deducted by the tenant on every rental payment regardless of its amount. While the obligation to deduct and remit TDS rests with the tenant, the NRI landlord bears responsibility for ensuring that the correct figures are accurately reflected in Form 26AS.

Rental income for NRIs is assessed on the Net Annual Value (NAV) of the property, arrived at by deducting municipal taxes from gross annual rent and then applying a standard 30% deduction; additional reliefs such as home loan interest deductions can further reduce the taxable figure.

NRIs who have had excess TDS deducted may recover the overpayment by filing an Indian Income Tax Return. Under Section 197 of the Income Tax Act, NRIs may apply to the Assessing Officer for a Certificate of Exemption if their total Indian income falls below the exemption threshold, which may result in a reduced tax liability or exemption from tax on rental income.

Where a Double Taxation Avoidance Agreement (DTAA) exists between India and the NRI’s country of residence, the landlord may be entitled to relief from double taxation on rental income or access to a reduced applicable tax rate. More than 90 countries — including the USA, Canada, the United Kingdom, and Australia — have such agreements in force with India.

Residential property rental income is exempt from Goods and Services Tax (GST), whereas rental income from commercial property attracts GST at 18%. All landlords — resident and non-resident alike — should engage a qualified Indian tax adviser and consult the Income Tax Department for the most current rates and requirements, as the rules are subject to revision with each annual Finance Act.

What are the rules around ending a tenancy or evicting a tenant in India?

India’s older tenancy legislation was widely criticised for being heavily weighted in favour of tenants, with eviction proceedings through the civil courts regularly taking months or years to resolve. The absence of proper documentation and limited legal awareness among both landlords and tenants frequently compounded these difficulties, leaving many parties at a serious disadvantage. The 2025 framework introduces significant reforms designed to redress this imbalance.

Tenants retain strong protections against summary or arbitrary eviction: a landlord is not permitted to remove a tenant without following a formal legal process and providing appropriate notice. Specifically, the landlord must serve at least 90 days’ prior written notice before terminating any tenancy.

Recognised grounds for eviction under the 2025 framework include non-payment of rent, misuse or unauthorised alteration of the property, the landlord’s bona fide need to occupy the premises, and requirements for substantial structural renovation. Where a tenant fails to pay rent for two consecutive months, eviction proceedings may be initiated. Cases involving three or more instances of missed rent payments within a single year may be referred directly to the Rent Tribunal for accelerated resolution.

The 2025 rules also afford landlords meaningful protection against holdover situations: where a tenant remains in occupation beyond the lease expiry date, the landlord may apply to the Rent Tribunal for a swift eviction order. This represents a material improvement on the previous regime, under which overstaying tenants could sometimes retain possession for years while civil court cases worked their way through a congested judicial system.

It is essential to emphasise that eviction orders may only be issued by a Rent Tribunal — landlords cannot take unilateral steps to remove a tenant, interrupt utility supplies, or change the locks on a property. Self-help eviction is illegal in India under any circumstances. Because land and tenancy matters fall within the State List of the Indian Constitution, each state must individually adopt, adapt, or legislate to give effect to the 2025 framework; landlords should confirm the implementation status of these rules in their specific state with a qualified local legal adviser.

What should expat landlords know about managing property remotely in India?

Overseeing a rental property in India from abroad is a genuinely complex undertaking. State-specific legal requirements, intricate tax compliance obligations, and the practical challenges of managing maintenance and tenant issues at a distance all create real difficulties. Absentee owners also face specific risks — including fraudulent documentation and illegal occupation of premises — that warrant careful attention.

Power of Attorney (PoA) is the cornerstone of any effective remote management arrangement. A non-resident landlord may appoint a trusted individual in India — whether a family member, solicitor, or professional agent — to act on their behalf across all property-related matters, including signing the tenancy agreement, overseeing registration, collecting rent, and managing disputes. Delays in PoA notarisation, or Powers of Attorney that have expired or been improperly attested, are a frequent source of compliance difficulty. A PoA must be notarised in the landlord’s country of residence and authenticated at the relevant Indian consulate or embassy before being registered in India to secure maximum enforceability.

FEMA compliance and income repatriation are critical considerations for any non-resident property owner. As an NRI or OCI, you are permitted to let immovable property — both residential and commercial — in India in accordance with FEMA and its regulations, and you may let to any person or entity in India or to another NRI. Rental income from Indian property may, subject to applicable laws, be deposited into and repatriated from a Non-Resident Ordinary (NRO) account or a Non-Resident External (NRE) account; where the tenant is also an NRI or Person of Indian Origin (PIO), the landlord may receive rent directly into their NRE account.

Under FEMA, NRIs may repatriate up to USD 1 million per financial year (April to March) from their NRO account, provided the funds derive from legitimately acquired assets such as rental income, all applicable Indian taxes have been settled, and the transfer is conducted exclusively through authorised dealer banks. The requisite documentation includes Form 15CA — a declaration of remittance submitted online through the Income Tax portal — and Form 15CB, a certificate issued by a Chartered Accountant confirming that the relevant taxes have been duly paid.

Tax compliance from abroad demands particular vigilance. Mandatory submission of Form 10F and a Tax Residency Certificate (TRC) is required even for those who are not registered on the Indian Income Tax portal, as these documents are now essential for claiming benefits under any applicable DTAA. Regularly checking Form 26AS via the income tax portal is equally important, as this statement consolidates all tax deductions recorded against your PAN and enables you to reconcile tax payments against what has actually been remitted.

Non-resident landlords are strongly encouraged to retain both a local property manager and a qualified Indian chartered accountant with specialist expertise in NRI taxation. The consequences of non-compliance with FEMA can be severe — penalties of up to three times the transaction value, property attachment orders, and restrictions on future repatriation. The Reserve Bank of India and the Income Tax Department are the principal official sources for current compliance requirements.

Frequently asked questions

Can a non-resident own and let property in India?

Yes. As an NRI or OCI, you are entitled to let out immovable property — both residential and commercial — in India in accordance with FEMA and its regulations, and you may let to any person or entity in India, or to another NRI. Foreign nationals who are not of Indian origin face additional restrictions on property ownership in India and should obtain specialist legal advice before taking any steps in this direction.

Do I need a local agent to let my property in India?

There is no legal requirement to use a letting agent, but for non-resident landlords the practical case for doing so is compelling. A local property manager can attend to tenant vetting, agreement registration, rent collection, maintenance oversight, and dealings with authorities — all tasks that are exceptionally difficult to handle from overseas. Any agent appointed should be engaged through a formal written contract, and their RERA registration should be verified where applicable.

How much security deposit can I charge as a landlord in India?

Under the 2025 framework, the deposit for residential premises is capped at 2 months’ rent, while for commercial premises such as retail units or offices the limit is 6 months’ rent (as of 2025). Some states apply a slightly higher ceiling of 3 months’ rent in non-metropolitan areas. Landlords should confirm the specific limit applicable in their state, as the 2025 framework is adopted and implemented on a state-by-state basis.

What is TDS on rental income for an NRI landlord, and who pays it?

Under Section 195 of the Income Tax Act, TDS is required on virtually all forms of income arising in India for NRIs. A tenant occupying a property owned by an NRI must deduct TDS at approximately 31.2% — comprising 30% tax, a surcharge, and 4% cess — before remitting rent (as of 2025). The obligation to deduct and remit TDS falls on the tenant, but the NRI landlord is responsible for ensuring that the correct amounts are properly reflected in their Form 26AS. Consult the Income Tax Department for current applicable rates.

Can I repatriate rental income from India to my overseas bank account?

Under FEMA, NRIs may repatriate up to USD 1 million per financial year from their NRO account, provided the funds originate from legitimately acquired assets, all applicable Indian taxes have been paid on those funds, and the transfer is effected exclusively through authorised dealer banks (as of 2025). Forms 15CA and 15CB are required for remittances exceeding ₹5 lakhs. Always verify the current limit and procedure with your authorised dealer bank and a qualified chartered accountant before initiating any transfer.

Do I need to file an Indian income tax return as a non-resident landlord?

Where total income from India exceeds ₹2.5 lakh under the old regime or ₹3 lakh under the new regime, filing an Indian income tax return becomes mandatory (as of 2025). Filing is also necessary in order to claim available deductions, ensure rental income is accurately reported, and obtain refunds where excess TDS has been deducted. Consult a qualified Indian chartered accountant for the current applicable thresholds and filing obligations.

What happens if my tenant refuses to leave at the end of the tenancy?

Under the 2025 rules, where a tenant remains in occupation after the lease expiry date, the landlord may apply to the Rent Tribunal for an expedited eviction order. However, only a Rent Tribunal has the authority to issue such an order — landlords cannot take unilateral action to remove a tenant, disconnect utilities, or change door locks. The key improvement over the previous regime is that the Rent Tribunal process is specifically designed to operate considerably faster than proceedings through the general civil courts.

Are Airbnb and short-term holiday lets permitted in India?

Short-term holiday letting through platforms such as Airbnb is lawful and represents a growing segment of the Indian rental market, but there is no single national regulatory framework specifically addressing it. Online platforms are required to ensure that listings comply with national and local laws, including host identity verification and adherence to safety and zoning requirements. Airbnb acts as a tax withholding agent for Indian hosts, deducting 1% of gross earnings and remitting this amount to Indian tax authorities — an obligation in force since October 2020. Landlords should also review any restrictions imposed by their housing society and confirm specific registration or permit requirements with local municipal authorities before listing a property for short-term rental.