I am a NRI and bought a property in India by availing a home loan from India. I pay regular mortgage payments to this loan. I have rented this property now and I get rental income.
Given that I am a NRI, what are my options ?
1. Should I file a tax return in India for my rental income ? Can I deduct the mortgage interest in my tax return ?
2. Can I file the tax returns in USA instead ?
What are the benefits of both approaches ?
2007-01-25 06:34:07 · 1 answers · asked by sramanathan13 2 in Business & Finance ➔ Taxes ➔ India
In the U.S.,you need to keep your rental property seperate from your personal property.
You will have to pay income taxes on your rental property income,but that is offset by any legitimate expenses incurred from your rental property. Mortgage interest,repairs,legal fees, and taxes may qualify.
AS for taxes in India,you will need to consult with authorities in India or a tax lawyer familiar with tax laws in both countries.
You may be able to claim taxes paid in India on your U.S. taxes as well as any state return you file.
YOU will need to consult a tax professional about your issues.
2007-01-29 02:38:08 · answer #1 · answered by Ralph T 7 · 0⤊ 0⤋