NRI Owner Resource
NRI Rental Income & Tax Compliance in India — What Every Property Owner Abroad Must Know
A plain-English guide to income tax, TDS, GST, FEMA repatriation, and the new Income-tax Act 2025 — for NRI homeowners earning rental income from short-term and long-term rentals in Kochi and across India.
India taxes rental income earned on Indian property regardless of where the owner lives or where the rent is received. Whether you are in Dubai, London, Toronto, or Sydney, your Kochi property’s rental income carries statutory obligations — income tax, TDS withholding, potential GST, and FEMA rules governing every rupee moved abroad. This guide covers all of them in plain terms.
The rules have grown more precise in 2025–26. The Income-tax Act, 2025 came into force on 1 April 2026, renumbering key provisions and updating compliance forms. The GST Council revised short-term rental rates in September 2025. This guide reflects all of those changes. Read it and share it with your Chartered Accountant — tax compliance, return filing, and all statutory obligations under Indian law remain the responsibility of the property owner and, where applicable, the tenant.
This guide is for general information only. It does not constitute tax or legal advice. Laws and rates are subject to change. Consult a qualified Chartered Accountant and FEMA practitioner before making decisions specific to your circumstances.
Four numbers every NRI landlord must know
31.2%
TDS rate on rent paid to NRI landlords — applies to every payment with no minimum threshold
USD 1M
Annual NRO repatriation limit under FEMA — covers rent, dividends, and capital receipts combined
₹20L
GST registration threshold for short-term rental income — once crossed, 5% or 18% GST applies by nightly tariff
88+
Countries with India Double Tax Avoidance Agreements — including UAE, UK, USA, Canada, and Singapore
01 — Why It Matters
The stakes of getting it wrong are not small
Non-compliance triggers penalties, blocked repatriation, and in serious cases, prosecution under the Income Tax Act and FEMA. Thousands of NRI homeowners in India earn rental income — and most are unaware of the full web of obligations that income carries.
India taxes rental income earned on Indian property regardless of where the owner lives or where the rent is actually received. Whether you are in Dubai, London, Toronto, or Sydney, your Kochi villa’s rental income is subject to Indian income tax, TDS withholding, and potentially GST. If that income is ever moved abroad, FEMA governs every rupee of that movement.
The obligations do not fall on the landlord alone. Tenants paying rent to NRI owners carry their own statutory duties — chiefly TDS deduction — and failure on their part creates a chain of consequences that ultimately lands on the property owner through blocked refunds, Form 26AS mismatches, and notices from the Income Tax Department.
Tax compliance, return filing, TDS obligations, GST registration, and FEMA repatriation filings are the statutory responsibility of the property owner and tenant respectively — not of a property manager. This guide sets out what those obligations are so you can engage the right professionals to fulfil them. Cocoon’s role is to manage your property on the ground. The sections below explain what records and documentation Cocoon holds, and how your CA can request them.
02 — Income Tax
How your rental income is computed and taxed
NRI rental income from Indian property is assessed under “Income from House Property” — the same head that applies to resident Indians. The computation follows a structured deduction sequence that almost always produces a tax liability far lower than the 31.2% TDS rate deducted at source.
The computation sequence
Begin with the Gross Annual Value (GAV) — the actual rent received or receivable for the year. From this, subtract municipal property taxes paid by the owner during the year to arrive at the Net Annual Value (NAV). The Income Tax Act then permits two deductions on NAV: a flat 30% standard deduction under Section 24(a), representing repairs, maintenance, and management costs regardless of what was actually spent; and interest on any housing loan under Section 24(b), with no ceiling on the deductible amount for a let-out property. The result is taxable income under this head.
NRI owners who have taken a home loan will typically find that the combination of the 30% standard deduction and full loan interest reduces — or even eliminates — taxable income under this head. This is precisely why a Lower TDS Certificate application is strongly recommended. The process is initiated by the owner through a Chartered Accountant, not by a property manager.
Tax rates, surcharge, and restrictions
NRIs are taxed at the same slab rates as resident Indians. The new tax regime under Section 115BAC applies by default, though NRIs retain the right to opt for the old regime. The 4% Health and Education Cess applies in every case. A surcharge applies once total Indian income crosses ₹50 lakh. One important restriction: the Section 87A rebate is not available to non-residents — meaning NRIs do not benefit from the zero-tax threshold available to residents under the new regime.
Filing obligations
NRIs earning rental income in India must file ITR-2 — not ITR-1, which is unavailable to non-residents. NRIs must reconcile all income and TDS credits in Form 26AS and the Annual Information Statement before filing. Mismatches between rent received and amounts reported by tenants in their TDS returns are the most common source of notices for NRI landlords. Where net tax liability after TDS credits exceeds ₹10,000, advance tax obligations arise — paid in four instalments across the financial year. ITR filing, advance tax computation, and all interactions with the Income Tax Department are the owner’s responsibility and must be managed through a qualified Chartered Accountant.
What Cocoon holds — available on request
Property records your CA may need for ITR-2 filing
In the normal course of managing your property, Cocoon maintains records including tenancy periods, rent payment logs, municipal tax payment receipts, maintenance expenditure records, and inspection documentation. These records are held for Cocoon’s own management purposes. If your Chartered Accountant requires any of these documents to support your ITR-2 filing or tax computation, you may request them directly from Cocoon. Cocoon does not prepare tax computations, file returns, or act as a tax agent for property owners.
03 — TDS Withholding
The 31.2% withholding — and how to reduce it
When an Indian tenant pays rent to an NRI landlord, the law requires the tenant to withhold 31.2% of every payment and deposit it with the government. This rate applies to every rupee of rent with no minimum threshold. The tenant does not have the option to ignore it — failure to deduct makes the tenant the “assessee in default.”
The over-withholding problem
31.2% on gross rent is almost invariably far more than the owner’s actual liability. After the 30% standard deduction and home-loan interest, many NRI owners have an effective tax rate of 10–15% on their rental income — or even nil in a loss year. The excess TDS sits with the government until the NRI files a return and claims a refund, which can take six to eighteen months. This is a real and recurring cash-flow cost.
The fix — Form 128 / Lower TDS Certificate
Section 395 of the Income-tax Act, 2025 (previously Section 197) permits an NRI to apply to the Assessing Officer for a certificate authorising deduction at a lower or nil rate, based on their estimated actual liability. The application is made via Form 128 (previously Form 13), supported by the last three years of ITR filings, a projection of current-year income and deductions, and bank statements. Where granted, the certificate instructs the tenant to deduct at the certified rate rather than 31.2%. Certificates are typically valid for the full financial year in which they are granted. This application is made by the owner through their Chartered Accountant — it is not filed by a property manager.
The tenant’s TDS compliance chain
Step 1 — Obtain TAN
The tenant must obtain a Tax Deduction Account Number (TAN) — PAN alone is insufficient for TDS on NRI payments. This is the tenant’s obligation.
Step 2 — Deduct and Deposit
31.2% (or certified lower rate) is deducted at payment and deposited with the government by the 7th of the following month. The tenant is responsible for this deposit.
Step 3 — File Form 27Q Quarterly
Quarterly TDS returns for payments to non-residents filed in Form 27Q — due July 15, October 15, January 15, and May 31. The tenant files these returns; the owner should confirm receipt of Form 16A each quarter.
Step 4 — Issue Form 16A
The tenant issues Form 16A (TDS certificate) to the NRI landlord within 15 days of the return due date. The owner must retain this certificate and provide it to their CA for ITR-2 filing.
Owner responsibility — supported by your CA
Lower TDS Certificate — your CA applies; Cocoon can provide supporting rental records on request
The Form 128 Lower TDS application is filed by your Chartered Accountant directly with the Income Tax Department. Your CA will require documentation of the property’s rental income — tenancy agreements, rent amounts, and payment records — to prepare the application. If your CA requests this documentation from Cocoon, it will be provided. Cocoon does not assess your tax liability, initiate Lower TDS applications, or correspond with the Income Tax Department on your behalf.
04 — STR vs LTR
Two different regimes, two different compliance maps
The distinction between short-term rentals and long-term residential tenancies is not merely one of duration. It triggers different income classifications, different GST obligations, different registration requirements, and different liability profiles. Each of these obligations rests with the owner or tenant as a matter of law — not with the property manager.
| Dimension | Short-Term Rental (STR) | Long-Term Rental (LTR) |
|---|---|---|
| Income classification | Business Income (PGBP) where management is active with hotel-like services — often more tax-efficient. CA opinion required. Owner and CA determine classification. | “Income from House Property” — default classification. 30% standard deduction applies automatically. Owner’s CA applies this in ITR-2. |
| GST applicability | Yes. 5% (≤₹7,500/night, no ITC) or 18% (>₹7,500/night, with ITC). Registration mandatory above ₹20L turnover. Effective 22 Sep 2025. Owner’s obligation to register and file. | Exempt. Residential letting for residential use is GST-exempt with no threshold. No GST obligation on the owner for residential LTR income. |
| TDS on rent to NRI | Section 393(2): 31.2% with no threshold. Tenant’s obligation to deduct and remit. Owner should confirm compliance and collect Form 16A. | Section 393(2): 31.2% with no threshold. Same tenant obligation. Lower TDS Certificate reduces this — applied for by owner’s CA. |
| Kerala/Kochi licensing | Serviced Villa classification (Kerala Tourism) + Kochi Corporation D&O Trade Licence required for the operating entity. Form C/FRRO within 24 hours for every foreign guest — filed by the operator. | Standard tenancy agreement. RERA registration for eligible projects. No tourism licence required. |
| Deductible expenses | Under PGBP: actual costs — staff, utilities, platform fees, furnishing depreciation, maintenance. No 30% notional deduction. Owner’s CA computes this. | 30% standard deduction (flat, no receipts) + home loan interest + municipal taxes paid. Owner’s CA computes this in ITR-2. |
| Platform obligations | OTAs (Airbnb, Booking.com) collect 1% TCS and remit GST for unregistered hosts under Section 9(5) CGST. Once registered, owner manages GST and invoices directly. | Not applicable. Direct tenancy arrangement. |
| FEMA / NRO | Income credited to NRO account — owner’s responsibility to maintain correct account type. Repatriation subject to USD 1M annual limit and Forms 145/146 — owner and CA file. | Income credited to NRO account — same owner obligation. Repatriation process identical. |
When a managed villa is let for short stays with housekeeping, linen, and maintenance services, the income can be characterised as business income (PGBP) rather than House Property income. The Supreme Court in Chennai Properties & Investments (2015) held that the classification turns on the primary object of the activity and the nature of services rendered. For professionally managed serviced villas, PGBP can be the more accurate and more tax-efficient classification — allowing deduction of actual running costs that often exceed the flat 30% standard deduction. This decision must be made per property, with a CA, and applied consistently. It is the owner’s decision, taken with professional tax advice.
05 — GST on STR
GST on short-term rentals after September 2025
The GST Council’s 56th meeting on 3 September 2025, and the CBIC notification giving effect to it from 22 September 2025, restructured hotel and accommodation GST rates. If you operate a short-term rental in Kochi, these are the rates that apply today. GST registration, filing, and payment are the owner’s statutory obligation — not the property manager’s.
5%
Tariff ≤ ₹7,500 per night
No Input Tax Credit available. Registration mandatory once ₹20L annual turnover is crossed. Owner registers and files returns.
18%
Tariff > ₹7,500 per night
Full Input Tax Credit available on furnishings, renovation, and operating costs. Owner registers, files GST returns, and claims ITC through their CA.
Registration and the OTA override
GST registration becomes mandatory once aggregate turnover crosses ₹20 lakh per financial year. However, accommodation supplied through OTAs such as Airbnb and Booking.com triggers a special rule: under Section 9(5) and Section 24 of the CGST Act, the platform becomes the deemed GST supplier for unregistered hosts. In practice, Airbnb collects GST from guests and remits it to the government, and the host faces 1% TCS on receipts. Once a host registers for GST — voluntarily or after crossing the threshold — the owner is responsible for issuing GST-compliant invoices to guests, filing returns, and reconciling ITC claims through their CA.
Residential property let for residential use under a standard long-term tenancy remains fully exempt from GST under the GST Exemption Notification — no threshold, no registration required for the rental income itself.
Clarity on Cocoon’s GST position
Cocoon invoices for its management fee only — accommodation GST is the owner’s obligation
Cocoon issues GST-compliant invoices for its own property management and STR management fees (GSTIN: 32AAZFG7923K1ZR). GST on the accommodation supply itself — the income earned from guests — is an obligation that rests with the property owner or the registered supplier of the accommodation. If the owner is below the ₹20 lakh threshold and using an OTA, the platform manages GST collection. If the owner crosses the threshold or registers voluntarily, the owner is responsible for their own GST registration, returns, and ITC reconciliation through their CA. Cocoon’s booking records are available on request by the owner or their CA.
06 — FEMA & Repatriation
Moving your rental income out of India
Earning rental income in India is one thing. Moving it to your bank account in Dubai, London, or Toronto is governed by FEMA and the RBI. FEMA violations carry their own penalty regime independent of income tax. Repatriation compliance is entirely the owner’s responsibility and must be managed with a CA and the owner’s bank.
The NRO account — where Indian rent must sit
All Indian-source rental income for an NRI must be credited to a Non-Resident Ordinary (NRO) account held in India. Continuing to use a resident savings account after acquiring NRI status is itself a FEMA contravention. The obligation to maintain the correct account type rests solely with the owner. Cocoon directs all rent payments only to the NRO account specified by the owner in the management agreement — it is the owner’s responsibility to ensure that account is correctly classified and maintained.
The USD 1 million annual repatriation limit
From an NRO account, an NRI may repatriate up to USD 1 million per financial year (April to March). This limit covers all remittances from the NRO account in that year: rent, dividends, interest, and sale proceeds combined. Rental income is treated as a current income transaction and is freely repatriable within the limit after tax. Once funds are transferred to an NRE account, they are fully and freely repatriable with no additional cap. All repatriation filings are the owner’s responsibility, executed with their bank and CA.
Forms 145 and 146 — effective 1 April 2026
Forms 15CA and 15CB — previously required for remittances abroad — have been renumbered as Forms 145 and 146 under the Income-tax Act, 2025. Form 145 is the remitter’s declaration (four parts by amount and type). Form 146 is the CA certificate required where the remittance exceeds ₹5 lakh. These forms are filed by the owner and their CA directly with the Income Tax Department and the owner’s bank. Cocoon is not a party to the repatriation process.
Key distinction
FEMA residency ≠ Income-tax residency
A person’s FEMA status and income-tax residency status are determined by different tests and can change independently. FEMA residency turns on intent and period of stay abroad. Income-tax residency is a day-count test assessed annually. Anyone spending 120 or more days in India in a year with Indian-source income exceeding ₹15 lakh should verify their tax residency status with a CA before filing — misclassification can affect both Indian and foreign tax obligations.
07 — DTAA
Avoiding double taxation on your Indian rental income
India has signed comprehensive Double Taxation Avoidance Agreements with 88 countries. For rental income from Indian property, India taxes first. The NRI’s country of residence then either exempts the income or credits the Indian tax paid against the local tax liability. DTAA relief must be claimed actively by the owner through their CA — it is not automatic.
Under Article 6 of most Indian DTAAs — including those with the USA, UK, Canada, UAE, and Singapore — rental income from immovable property is taxable in the country where the property is situated. To claim DTAA relief, the owner must provide three documents to the payer (for lower TDS) and to their CA (for ITR filing): a Tax Residency Certificate (TRC) from the country of residence, Form 10F (Indian declaration), and a valid PAN. Obtaining these documents and submitting them in the correct form is entirely the owner’s responsibility.
| Country of Residence | DTAA Treatment on Indian Rental Income |
|---|---|
| UAE | No UAE personal income tax — no double-tax burden. India taxes only. DTAA (Article 6) confirms India’s right to tax. Gulf NRIs pay Indian tax only. |
| United Kingdom | India-UK DTAA Article 6 — India taxes first. HMRC credits Indian tax paid against UK liability under the arising-basis rules. |
| United States | India-USA DTAA Article 6 — India taxes first. IRS credits Indian tax against US liability under the foreign tax credit provisions of the IRC. |
| Canada | India-Canada DTAA Article 6 — India taxes first. CRA grants a foreign tax credit on the Indian tax paid. |
| Singapore | Singapore generally exempts foreign-source income for resident individuals. India taxes only in most circumstances. |
| Australia | India-Australia DTAA Article 6 — India taxes first. ATO credits Indian tax paid against Australian liability. |
08 — New Law
The Income-tax Act, 2025 — what actually changed
After more than a decade of discussion, the “new Direct Tax Code” arrived — not as a radical overhaul, but as a comprehensive consolidation. The Income-tax Act, 2025 came into force on 1 April 2026. Tax rates are unchanged. The substantive treatment of NRI rental income is unchanged. What changed is section numbering, form numbers, and a modest tightening of NRI residency conditions.
Key renumbering — old vs new
| Old Reference (1961 Act) | New Reference (2025 Act) | What it covers |
|---|---|---|
| Section 195 | Section 393(2) | TDS on payments to non-residents (including NRI rent) — tenant’s obligation |
| Section 197 | Section 395 | Lower / Nil TDS Certificate application — filed by owner’s CA |
| Form 13 | Form 128 | Lower TDS application form — submitted by owner’s CA to Assessing Officer |
| Form 15CA | Form 145 | Remitter’s declaration for overseas payments — filed by owner |
| Form 15CB | Form 146 | CA certificate for overseas remittances >₹5 lakh — issued by owner’s CA |
| Previous Year / Assessment Year | Tax Year | Single unified year reference throughout the Act |
Income earned up to 31 March 2026 continues to be governed by the Income-tax Act, 1961. The 2025 Act applies to income earned from 1 April 2026 onward. During the transition, correspondence from the Income Tax Department may reference either numbering. Your CA should be familiar with both.
One meaningful procedural simplification from 1 October 2026: a resident purchasing property from an NRI seller will be able to deposit TDS via a PAN-based challan without obtaining a TAN — under Section 397(1)(c) of the new Act. This reduces friction for buyers in NRI property sale transactions.
09 — AML & PMLA
Anti-money laundering obligations in the rental context
The Prevention of Money Laundering Act, 2002 (PMLA) extended its reach to real-estate agents in November 2022. A property management company with annual turnover above ₹20 lakh that facilitates rental placements is a reporting entity under the PMLA — with its own direct KYC, record-keeping, and FIU-IND reporting obligations. These are Cocoon’s obligations as a business, not services provided to clients.
For NRI landlords — what this means in practice
Any NRI owner placing a property under Cocoon’s management is required to provide standard KYC documentation as part of onboarding: a copy of the passport, proof of NRI status or NRO account, and identity documentation for any Power of Attorney holder operating in India. This is Cocoon’s own statutory requirement as a PMLA reporting entity — it is not optional and it is not a service Cocoon provides to the owner. The owner’s separate PMLA or AML obligations, if any, are the owner’s responsibility.
Compliance red line
Cash transactions — the rule every landlord must follow
Rental payments in cash exceeding ₹2 lakh in a single transaction are prohibited under Section 269ST of the Income Tax Act, attracting a 100% penalty on the amount received. Cash above ₹10 lakh in aggregate triggers PMLA reporting obligations. For NRI landlords, insisting on bank transfers for all rent payments is not merely convenient — it is a compliance requirement that protects the owner. Cocoon’s service agreements specify electronic payment as the required payment method for all managed properties. This protects both parties and creates a clear audit trail for the owner’s CA.
10 — What Cocoon Provides
Your property managed. Your obligations, clearly defined.
Tax compliance, return filing, GST registration, TDS applications, and FEMA repatriation are the statutory responsibility of the property owner — and in the case of TDS deduction, the tenant. These obligations cannot be delegated to a property manager. What Cocoon does is manage your property on the ground and maintain records in the normal course of that work. Below is a clear account of what Cocoon holds and what remains with you and your CA.
NRO Account on File
Cocoon: Directs all rent payments only to the NRO account number confirmed by the owner at onboarding.
Owner: Responsible for maintaining a correctly classified NRO account and notifying Cocoon of any changes.
Lower TDS Certificate
Cocoon: Can provide rental income records on request to support the owner’s CA in preparing the Form 128 application.
Owner: Responsible for instructing their CA, applying for the certificate, and notifying the tenant of the certified rate.
TDS & Form 27Q
Cocoon: Not responsible for TDS deduction, Form 27Q filing, or Form 16A issuance — these are the tenant’s statutory obligations.
Owner: Must confirm the tenant holds a TAN and is filing quarterly returns. Collect Form 16A from the tenant each quarter.
GST — Cocoon’s Own Invoices
Cocoon: Issues its own GST-compliant invoices for management fees (GSTIN: 32AAZFG7923K1ZR). Does not manage the owner’s GST obligations.
Owner: Responsible for their own GST registration, returns, and ITC claims on accommodation income through their CA.
Form C / FRRO Filing
Cocoon: As the STR operator on the ground, files Form C/Form-III with the FRRO within 24 hours of check-in for all foreign guests — this is Cocoon’s operational obligation as the property operator.
Owner: Ultimate responsibility for compliance with immigration reporting law rests with the property owner; confirmed in the service agreement.
Property Records
Cocoon: Maintains tenancy records, rent logs, maintenance records, and inspection documentation in the normal course of property management. Available on request by the owner or their CA.
Owner: Responsible for using these records to prepare and file ITR-2 through their CA.
Repatriation
Cocoon: Not involved in repatriation. Cocoon is not a party to Forms 145/146, NRO-to-NRE transfers, or FEMA filings.
Owner: Responsible for all repatriation filings, CA certification, and bank submissions. Rent payment logs available from Cocoon on request.
KYC & PMLA — Cocoon’s Own Obligation
Cocoon: Collects KYC documentation from all owners, tenants, and PoA holders as Cocoon’s own PMLA reporting-entity obligation. Five-year retention as required by law.
Owner: Must provide complete KYC documents at onboarding. Failure to do so prevents Cocoon from onboarding the property.
Serviced Villa Licensing
Cocoon: Holds and renews the Kerala Tourism Serviced Villa classification and Kochi Corporation D&O trade licence for STR properties under its operational management.
Owner: Responsible for authorising Cocoon to apply for these licences and for ensuring the property meets the classification requirements.
Cocoon does not provide tax advisory, tax filing, or compliance management services. Where an owner requires a CA familiar with NRI property income — for ITR-2 filing, Lower TDS applications, GST registration, or FEMA repatriation — Cocoon can make an introduction. The engagement is directly between the owner and their CA.
Frequently Asked Questions — NRI Rental Income & Tax Compliance
Is my Kochi rental income taxable in India even though I live abroad?
Yes. India taxes income from property situated in India regardless of where the owner is a tax resident. Whether you receive the rent in your UAE or UK bank account or in an Indian NRO account, the income is assessable in India under the “Income from House Property” head. The applicable DTAA with your country of residence then determines how your home country treats the same income — typically through a foreign tax credit. Consult your CA to file ITR-2 and claim the benefit.
My tenant is deducting 31.2% TDS — but my actual tax should be much less. What can I do?
Apply for a Lower TDS Certificate under Section 395 of the Income-tax Act, 2025 (Form 128). This certificate, issued by your Assessing Officer, instructs your tenant to deduct at a lower rate reflecting your actual estimated liability after deductions. This application is made by you through your Chartered Accountant — Cocoon does not file it on your behalf. Your CA will need rental income records from Cocoon to prepare the application; these are available on request. Without the certificate, you file ITR-2 and claim a refund — but the refund cycle can take twelve to eighteen months.
Does my short-term rental on Airbnb attract GST?
Yes, if your nightly tariff is above ₹7,500 or your aggregate annual turnover exceeds ₹20 lakh. GST applies at 5% (≤₹7,500/night, no ITC) or 18% (>₹7,500/night, with ITC) effective from 22 September 2025. For bookings through Airbnb below the ₹20 lakh registration threshold, Airbnb collects and remits GST on your behalf as the deemed supplier — and deducts 1% TCS from your receipts. Once you cross the threshold or register voluntarily, you are responsible for your own GST registration, return filing, and ITC claims through your CA. Cocoon issues its own GST invoices for its management fee only.
Can I move my rental income from India to my UAE account? What are the limits?
Yes. Post-tax rental income in your NRO account can be repatriated abroad up to USD 1 million per financial year (April–March) under FEMA. Repatriation requires Forms 145 and 146 (effective 1 April 2026, replacing Forms 15CA and 15CB) — filed by you and your CA with your bank. Cocoon is not a party to the repatriation process. Rent payment logs held by Cocoon are available on request if your CA requires them. You may also transfer from NRO to NRE account within the same limit — NRE funds are then freely repatriable without a separate cap.
What has changed under the Income-tax Act, 2025?
The Income-tax Act, 2025 — in force from 1 April 2026 — is a comprehensive rewrite and consolidation of the 1961 Act. Tax rates on NRI rental income are unchanged. Key changes are in numbering: Section 195 becomes Section 393(2), Section 197 becomes Section 395, Forms 15CA/15CB become Forms 145/146, and Form 13 becomes Form 128. The term “Assessment Year” is replaced by “Tax Year.” NRI residency rules are modestly tightened for those spending 120+ days in India with income above ₹15 lakh. Your CA should be updated on these new references before the next filing cycle.
Does Cocoon file my income tax return or handle my tax compliance?
No. ITR-2 filing, advance tax computation, Lower TDS applications, GST registration, FEMA repatriation filings, and all DTAA benefit claims are the responsibility of the property owner and their Chartered Accountant. Cocoon does not provide tax advisory or filing services. In the normal course of managing your property, Cocoon maintains records — tenancy agreements, rent payment logs, maintenance records, and inspection reports. If your CA requests any of these to support your filing obligations, they are available on request from Cocoon.
Legal Disclaimer. This article is published for general information and educational purposes only. It does not constitute tax advice, legal advice, or financial advice. Laws and rates cited reflect the position as at June 2026 and are subject to change. NRI homeowners should consult a qualified Chartered Accountant and, where relevant, a FEMA practitioner, before taking decisions specific to their circumstances. Cocoon Property Management (Gallivant Ventures LLP, LLPIN: ACB-5193) does not provide tax or legal advisory services and does not accept liability for any action taken or not taken on the basis of this publication. | Last updated: June 2026
Talk to Cocoon about managing your Kochi property
Your property managed. Your home protected. Your records available when your CA needs them.
+91 98470 88888 | [email protected] | www.liveincocoon.com