What documents would I need to claim the foreign tax credit?

You will need: Proof of US tax payment (IRS Form 1040 or 1040-NR). Rent agreements or the documents of ownership. Bank statements showing the rent has been received. Form 67 filed online before you submit your ITR.

NRI Returning to India

USA Rental Income Tax for RORs in India

By Pankaj Shaw |Last Updated: November 5, 2025

For an individual returning to India with rental income in the USA, understanding the taxation of foreign income in India is essential. Upon returning to Indian and after attaining resident and ordinarily resident status, your global income becomes taxable in India, including your USA rental income.

Yes, after being an ROR, if you are still earning income from the USA, the Indian taxation also applies to it.

Pankaj Shaw(Tax Expert)

Mr Shaw brings 8 years of experience in auditing and taxation. He has a deep understanding of disciplinary regulations and delivers comprehensive auditing services to businesses and individuals. From financial auditing to tax planning, risk assessment, and financial reporting. Mr Shaw's expertise is impeccable.

Frequently Asked Questions

Yes, upon returning to India and qualifying as a resident and ordinary resident (ROR), your global income, including rent from your US property, becomes taxable. While filing the income tax return in India, you must declare it under "Income from House Property

Initially, yes, you have in India, and to pay taxes both in India and the USA. However, as per the India-US DTAA benefits, you can claim the Foreign tax credit in India on the taxes you have already paid in the United States to avoid being taxed twice.

You must use ITR-2, as it applies to individuals who have foreign assets and income. You will be required to fill the schedule FA (foregin Assets) and schedule FSI (foreign source Income) for the disclosure to be proper and accurate.

You will need:

Proof of US tax payment (IRS Form 1040 or 1040-NR).
Rent agreements or the documents of ownership.
Bank statements showing the rent has been received.
Form 67 filed online before you submit your ITR.

USA Rental Income Tax for RORs in India

Frequently Asked Questions

Is my USA rental income taxable in india after I return and become ROR?

Do I have to pay tax both in the USA and India on the same rental income?

Which ITR form should I use to report USA renal Income in India?

What documents would I need to claim the foreign tax credit?

USA Rental Income Tax for RORs in India

Frequently Asked Questions

Is my USA rental income taxable in india after I return and become ROR?

Do I have to pay tax both in the USA and India on the same rental income?

Which ITR form should I use to report USA renal Income in India?

What documents would I need to claim the foreign tax credit?