1. Home
  2. Guides
  3. For owners abroad

Owning in Bengaluru, living abroad: a guide for NRI owners

Rent, tax deducted at source, power of attorney, upkeep and what to plan for when you sell.

Renting while you are away

Most of the work of a rental happens on the ground: showing the home, checking tenants, handing over keys, fixing a leak at short notice. Decide early who will do it, whether that's family, a friend or a manager, and put that arrangement in writing.

Rent and tax deducted at source

When a tenant pays rent to a non-resident owner, the tenant is required to deduct tax at source before paying and deposit it with the government. Many tenants don't know this, so explain it at the start and build it into the agreement. Rent is usually received into an NRO account, and you can claim credit for the tax deducted when you file your return. Ask your chartered accountant about the details for your situation.

Power of attorney

A specific power of attorney lets someone in India sign on your behalf for a defined purpose, such as a lease or a sale. If you sign it abroad, it usually needs to be attested at an Indian embassy or consulate, or apostilled, and then stamped once it arrives in India. Keep its scope narrow and specific.

Keep the property in good order

Pay property tax and association maintenance on time, both can be done online, and keep receipts. Arrange an inspection at least once or twice a year, with photographs, so small problems don't become expensive ones.

When you sell

Sale proceeds can be repatriated within limits set by the Reserve Bank of India, and the paperwork includes certification from a chartered accountant. Capital gains tax applies, and the buyer must deduct tax at source when paying a non-resident seller. Plan this with your accountant months before you list the home, not after you find a buyer.

This guide is general information to help you ask the right questions. It isn't legal or tax advice, and rules change, so confirm the specifics for your situation before you act.

Your property deserves judgement, not just a listing.

Tell us what you're trying to achieve. If we're the right firm for it, we'll say so, and if we're not, we'll tell you that too.