Indian Rental income when you are us citizen

[beerboy17]

If you are us citizen and have good rental income from India..is it allowed? Do you know how much taxes need to pay and if there is any limit on rental income ? Experts pls suggest

[ManOffSteel]

You need to file a tax return in India and pay taxes in India first. After that you can report the same income on your US tax return and take a credit for the income tax you have paid in India.  In India upto 12L you don't need to pay tax now, so if your rental income is below 12 L directly report this income on your US tax return and pay taxes in US. 

[rmJU72]

It’s not just US citizens, even if you are a tax resident of the US you need to do that. Reporting is similar to rental income reporting in the US, but you can additionally deduct India taxes in case you paid any

[krishnaaa]

45 minutes ago, ManOffSteel said:

You need to file a tax return in India and pay taxes in India first. After that you can report the same income on your US tax return and take a credit for the income tax you have paid in India.  In India upto 12L you don't need to pay tax now, so if your rental income is below 12 L directly report this income on your US tax return and pay taxes in US. 

And can claim rental property depreciation as well.

Just the building.

[beerboy17]

thanks for the valuable inputs

[vkk]

India and US has a dual taxation avoidance treaty in place. US tax residents will be liable to pay taxes on worldwide income. Pay taxes in India and get credit for it in the US. Income needs to be declared in both the countries.

You should find related info in some taxation forums or best to go with a CPA.

[beerboy17]

11 minutes ago, vkk said:

India and US has a dual taxation avoidance treaty in place. US tax residents will be liable to pay taxes on worldwide income. Pay taxes in India and get credit for it in the US. Income needs to be declared in both the countries.

You should find related info in some taxation forums or best to go with a CPA.

got it bro.. just want to understand if the laws are diff for US citizen vs any other indian visa ?