House Property of NRI

This query is : Resolved

Shantanu Mahato (Querist)
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03 December 2009 A person who is NRI purchases three House Properties. In Two properties he let their relatives to stay and in the third one to carry on business of a company of whom he himself is Director and Shareholder and charges very nominal rent simply to execute a rent deed as required by various Government department.However all the properties are registered in his name by someone else whom he has given General Power of Attorney to register.
Is he liable to pay tax in India under the head Income from House property if it is so then what will be the rent recieved from these properties?

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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03 December 2009 Yes he is liable to pay income tax. The properties if not self occupied shall be treated as deemed let out and Fair rental value in that area shall be taken as rent recd. from the properties