For the single owned property from oci is self owned and not taxable by way of rent but more then one one house if owned is taxable by way of rent. 

Long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.

TDS Deductible

When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced  from the date of purchase) a TDS of 30% shall be applicable.

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1.  Income /Long Term Capital Gain (LTCG), resulting from properties situtated abroad of an OCI person, would depend on the Capital Funding infused for purchase of the House and further in whose Income Tax Returns (ITR), the House property is reflected.

2. IF the Funds (documentarily) are solely contributed by you (& documentarily not by Wife),  .AND.  "IF" house property is solely reflected ONLY in your ITR, THEN wife CANNOT claim any income /LTCG in her ITR, in anyway, whatsoever.

3.  To be eligible for LTCG (in India), you would need to hold the Title-Ownership of immovable property in your ITR, for atleast Two years.

yes single property is a self acquired property exempt from tax on rental income

1.Since we own a single property will the rental income from be taxed?. Also if taxed will the income from house be divided between me and my wife for tax filings.My wife does not work and hence it is beneficial if we can divide the rental income.


the property is situated in the foreign country. Therefore the tax laws of that country will apply. The rent is an income in the hands of the owner. If the income is below the exemption limit for taxation, then no tax will be required to be paid. For the tax slabs of the foreign country, you need to consult an accountant practicing the tax laws of that country. Also though the property is in joint names of you and your wife, the mortgage loan is paid by you and the rent is also deposited in your account. This means essentially you are the owner and your wife's name is added merely for sake of convenience and as a family arrangement. So the rental income will be taxed wholly in your hands, subject to the exemption limit. 

2.When we sell the house after some years how much capital gains tax will be applicable for OCI and how exactly is capital gains computed.
as the property is not in India, the tax laws of India will not apply. 

Tax shall be paid in one country-  income from house property and probably where property exits. It will taxed in your hand than you can share your net income with your wife.

LTCGT shall not be levy on you, but acc. to country tax rule where property exits.

No such law that income from signal house property exempted from tax, at least not in India.

1.  Property is outside India and Rent is also received in overseas account and you are not a Citizen of India .... In this scenario, you are not liable under Indian Income Tax laws, BUT "could" be liable to tax in the foreign country.

Yes the rental income from property situated out of India is taxable in India. 

Yes you can divide the taxable income between you and your wife only if your wife is contributing in the EMIs of the house. 

The  house is   at abroad and the same has been rented out at abroad, hence the income whatever has been drawn out of this rental amount also shall be taxed as per that country's laws.

Similarly the capital gains tax also may be suffered in the country where the property situate and being sold.

The law in this regard in India is different to that of the foreign country.

The property fetches you income in the foreign country  where your property situate.

You may have to adhere to the laws of that country however you may consult an auditor on all such further issues.

Dear Sir,

As a NOR or NR, if you sell any overseas assets and receive the sale proceeds outside India, you do not have to pay any taxes in India. ... While such rental income is taxable in India, returning Indians should note that the 'notional rental income' from more than one self-occupied property is also treated as taxable

1. It will be p[rudent on your part to divide the rental income amongst both of you for tax saving. However, if you are citizen of that country then you shall have to pay I.Tax in that country for earning the rental income at that country.

2. Capital gain tax is calculated on the profit you have earned after selling the property in India. However, since theproperty is in some other Country and you are theb citizen of that6 country, the sale proceeds will be deposited in your Bank account at that Country and after paying tax thereat, you can bring the balance amount to India if such transfer of money is permitted in that Country.

1. You are citizen of some other Country and hold OCI card only.

2. The property is situated in that country.

3. The rental income earned is in that country.

4. You shall have to pay the tax in that country for the said earnings.