From an Indian booking to your bank abroad

Rent is income earned in India, so it arrives in rupees in India. Getting it to London or Dubai is allowed, but the bank will want to see that tax has been dealt with first.

This page follows the money: where it lands, how the Reserve Bank of India classifies it, what limits apply and which documents your bank will ask for. It describes the general framework; your bank and chartered accountant apply it to your case.

Step one: the right account

The Reserve Bank of India defines a Non-Resident Indian as a person resident outside India who is a citizen of India. Income you earn in India, such as rent, is credited to a Non-Resident Ordinary (NRO) account. Interest and income in an NRO account are taxable in India. By contrast, income in a Non-Resident External (NRE) account is exempt from income tax, which is why the rules on what may be credited there are strict.

Step two: rent counts as current income

RBI guidance repeatedly names rent, alongside dividends, pension and interest, as current income. Remitting current income outside India is a permissible debit to the NRO account. The RBI's FAQ also treats current income such as rent as a permissible credit to an NRE account. Either way, the bank will ask you to show that the funds are genuinely current income and that tax has been handled.

Step three: the yearly ceiling on NRO balances

Separately from current income, an NRI or person of Indian origin may remit up to USD 1 million per financial year (April to March) from NRO balances, including eligible asset sale proceeds. Rent that you let accumulate for years becomes part of those balances; regular remittance of current income keeps the picture simpler.

Step four: the tax paperwork

Banks allow these remittances on production of an undertaking in the format prescribed by the Central Board of Direct Taxes. For years these have been known as Forms 15CA and 15CB, the second being a chartered accountant's certificate; ask your bank which forms it currently requires. The declarations tie back to the tax deducted at source on your rent, which is why the tax guide should be read first.

• Keep TDS certificates for every payer.
• Keep the monthly owner statements showing gross income, costs and net amounts.
• Remit in regular intervals rather than one large transfer, so each tranche is easy to document.

Step five: tax where you live

Your country of residence may tax the same rent. India has double taxation agreements with many countries; relief usually requires proof of Indian tax paid. Share the Indian TDS certificates with your adviser abroad.

Common mistakes

• Having rent paid into an old resident savings account after becoming an NRI.
• Asking a friend in India to receive the money and wire it informally.
• Remitting before tax has been deducted or declared, then struggling to explain the gap.
• Mixing rental income with unrelated transfers, which makes the trail hard to follow.

Where Hexuvium comes in

We do not move your money across borders and we do not give tax advice. Under our management mandate, payouts are directed to your own account in India, and every month you receive a statement per stay that your bank and chartered accountant can use. Ownership, bank accounts and remittance decisions remain entirely yours.