Owning a property in a city like Pune when you live thousands of kilometres away can be really stressful. You start to worry at times. Like when you miss a rent payment or when a bill is overdue or when a tenant stops answering your messages. You also worry that something might be going wrong with your Pune flat and you will not know about it until it is too late. Many Non Resident Indians who own property in Pune face this problem. They like Pune because it gives rental income they are familiar with the city and many people work in the IT sector there.
The good thing is that managing a property in Pune from another country is now much easier. You just need to know about the laws, taxes and management systems and set them up correctly. If you do this you can manage your Pune property without much trouble. The difference, between someone who manages their property with ease and someone who is stressed is not because of bad luck. It is because they set up the systems from the start.
This guide will tell you everything you need to know if you are a Non Resident Indian who owns a property in Pune. It will explain the laws, how to manage your income how to take care of your property and how to deal with taxes so you can keep your rental income.
If there is one paper that decides whether managing a property from far away in Pune is easy or a big problem it is the Power of Attorney. Without it people who live outside India have to fly to India for every big deal. Like signing a new lease registering a sale or even just fixing something that is broken.
A Power of Attorney is a paper that lets someone else make decisions for you when you are not there. This person is called the attorney. For people who live outside India a Power of Attorney is very important for a few things: taking care of the property buying and selling the property, banking and dealing with the government.
There are two kinds of Power of Attorney that’re important for property owners. One is called a General Power of Attorney. This kind of Power of Attorney lets the attorney make a lot of decisions without needing a paper for each thing. The other kind is called a Special Power of Attorney. This kind of Power of Attorney only lets the attorney make decisions for one thing.
People who live outside India can make a Power of Attorney without having to come to India. They just have to make the paper sign it in front of a public and two witnesses and then send it to India. The paper has to be checked and stamped by the government.
For properties in Pune the paper has to be taken to the Superintendent of Stamps. There is a deadline for this. It has to be done within three months. If it is not done on time it can cause problems.
One thing that people who live outside India often do not think about is the cost of the stamp for the Power of Attorney. The government of Maharashtra has rules about this. The cost depends on who the attorney’s. If the attorney is a family member the cost is usually lower.
It is worth knowing that a lot of people use Power of Attorney. In fact 28 percent of all property sales by people who live outside India are done using a Power of Attorney. This number is getting bigger as more people start using professionals to manage their properties.
A Power of Attorney is an useful tool for people who live outside India and own property in Pune. It can make things a lot easier.. It is important to do it correctly and follow all the rules. The Power of Attorney can help with property management, property transactions, banking and dealings, with the government. The Power of Attorney is a paper that can help people who live outside India take care of their properties in Pune.
Once you understand that a Power of Attorney is essential the next critical decision is who to appoint as your Power of Attorney.. This decision deserves far more thought than most Non Resident Indians give it.
Appointing a trusted family member as your Power of Attorney is the way and it works well when that family member is really available good with money and willing to dedicate time to managing your propertys affairs. The risk is that family Power of Attorney arrangements can create problems in the relationship. Managing tenants, handling maintenance disputes and making decisions for someone else is really tough work and an informal arrangement often breaks down when the family members life changes or when disagreements arise about how the property should be managed.
The alternative. And a common choice among Non Resident Indians in 2026. Is appointing a property manager or lawyer as your Power of Attorney. Professional Non Resident Indian property management services usually charge either a fee in the range of ₹3,000 to ₹15,000 per month or a percentage of monthly rental income, typically 8 to 12 percent. In exchange a good professional service delivers structured and management that informal family arrangements often struggle to sustain: photo and video inspection reports, maintenance approvals through clear digital channels like WhatsApp or email online rent payment tracking and direct legal support when needed.
The key thing to understand is that a Power of Attorney is not required for every task. Day-to-day activities like property inspections coordinating maintenance and following up with tenants on rent payment do not necessarily require a registered Power of Attorney if you are working with a property management company under a service agreement. These can typically be handled under a standard management contract. A Power of Attorney becomes necessary when your representative needs to execute documents handle a formal property sale sign a fresh tenancy agreement that requires the landlords signature or represent you in a court or municipal dispute.
The right approach for Non Resident Indians is a hybrid one: appoint a trusted person. A family member or professional. With a properly registered Power of Attorney that is limited to the powers they will really need and supplement this with a professional property management service for the day-, to-day work. Rent collection, tenant sourcing, maintenance coordination and regular reporting. That does not require the weight of a full legal delegation of your Power of Attorney.
Rental income is the reason why most Non Resident Indian property owners hold onto a Pune property instead of selling it. If you do the rental management process correctly it can almost run by itself once you have the systems in place.
Finding and Vetting Tenants Remotely
You do not need to be present in person to find a tenant for your Pune property. Professional property management platforms and local agents can visit the property check the identity and background of tenants and give you updates at times that work for you. This means you can look at tenant profiles approve or reject them and finalize the terms through video calls and digital documents without being there.
For Non Resident owners it is even more important to verify the tenants. This is because it is harder to handle problems with tenants when you’re far away. Make sure to get a police verification, which is required in Maharashtra for any rental and verify the employer for tenants who are paid a salary. It is also an idea to have a security deposit that protects you financially usually one to three months rent in the current Pune market.
Drafting and Executing the Rental Agreement
A agreement that is legally sound is the most important document that protects your interests as a landlord who is not present in person. Non Resident Indian owners can have an agreement prepared and finalized remotely without needing to visit India. These agreements can be finalized digitally. Delivered to the property for signing and registration.
Make sure your rental agreement clearly says what will happen with the rent increase, five to ten percent each year in Punes mid-segment rental market. It should also say who is responsible for maintenance and repairs how much notice is required to end the agreement and who is responsible for paying taxes on the income. This is important because your tenant is required by law to deduct taxes from your income and you need to understand this to avoid disagreements.
Rent Collection and Direct Transfer
The process of getting your rent should be clear and automatic. Most professional management arrangements ensure that the rent is collected on time and transferred directly to your bank account your Non Resident Ordinary account since this is required by law for Non Resident Indian owners. You can set up debits from the tenants account or use a property management service that collects and transfers the rent, on a fixed schedule. This removes the uncertainty that Non Resident Indian landlords often face.
A property that is empty or not taken care of does not just mean you lose money from rent. It also loses value over time.. If you do not fix small problems they can become big and expensive problems to fix. To take care of a property in Pune that you are not living in you need to have a plan for maintenance not just fix things when they break.
Periodic Inspections
Checking on the property regularly is very important for taking care of it. This means scheduling inspections not just going to the property when something is wrong. A good property manager will make sure the property is maintained, repaired and inspected on a basis. They will also take photos and videos after each visit so you can see how the property is doing without having to be. If you are an NRI owner you should make sure your property manager checks on the property at times like every quarter and has a clear plan for what to do if they find any problems.
Common Area Coordination
If your property in Pune is part of a housing society, which most apartmentsre your property manager needs to deal with the societys management committee. This means paying maintenance fees on time going to society meetings and knowing about any extra fees that might be charged to owners. Many NRI owners do not realize how much it can cost if they do not stay on top of these things. If you miss a payment you might have to pay fees or you might not be able to use the societys amenities. These problems are not hard to avoid if you have a system but they can be very hard to fix if you are not in the country.
Handling Major Repairs and Renovation
For maintenance jobs like fixing a leaky roof or rewiring the electricity your property manager should have a clear plan for getting your approval for the cost. The best way to do this is to set a limit so that small repairs can be done without you having to sign off on them but bigger jobs require your approval before they start. This way small repairs do not get stuck waiting for you to sign off on them. You still have control, over how your money is being spent on bigger jobs.
Managing a property from away can be really confusing especially when it comes to taxes. If you do not understand the tax rules and do not set up your finances correctly from the start it can cost you a lot of money. Understanding the tax rules clearly and setting up your finances correctly makes a difference to the money you actually get to keep.
Rental Income Is Taxable in India
If you own a property in India and rent it out you have to pay taxes on that money no where you live. Even if the property is empty you still have to pay taxes on it. You have to file a tax return in India and pay taxes even if it is not a lot of money.
The tax calculation starts with the money you get from renting out your property. You can subtract 30 percent of this money for maintenance and repairs. You do not have to prove that you actually spent this money. You can also subtract the property taxes you paid and the interest on your home loan. There is no limit to how interest you can subtract, which is different from if you were living in the property.
TDS: Your Tenants Legal Obligation
There is something that surprises people who own properties in India but live in another country: your tenant has to subtract 30 percent of the rent for taxes. This is a lot higher than if you were living in India. The tenant also has to fill out some forms when they pay the rent.
This 30 percent tax rate is often a lot higher than what you owe after subtracting all the expenses. This means you will probably pay much tax and have to file a tax return to get some of that money back. You cannot just ignore this. Hope it goes away. If you do not file the tax return you will lose a lot of money that’s yours.
There is a way to do this: you can ask for a special certificate that lets your tenant subtract less money for taxes. If you get this certificate your tenant can subtract the amount of taxes from the start and you will not have to wait to get your money back.
The NRO Account: Where Your Rental Income Goes
If you own a property in Pune and rent it out the money has to go into an account called an NRO account. This is the account that the law says you have to use for money you earn in India. The interest you earn on this account is also taxed,. If your country has a special agreement with India you might be able to pay less tax.
You should not put this money into another kind of account called an NRE account. That account is for money you earned in another country and brought to India. It is not for money you earn from renting out a property in India.
Double Taxation Relief
If you live in another country you might have to pay taxes on the money you earn from renting out your property in India.. You should not have to pay taxes twice on the same money. There are agreements between India and other countries that can help you avoid paying taxes twice. To get this benefit you have to keep records and report the income correctly in both countries. It is an idea to get help from accountants, in both India and your country to make sure you are doing everything correctly.
When you get your income it is taxed and then it goes into your NRO account. The last step is to transfer this money to your bank account in another country. This is called repatriation.
The rules for taking money out of an NRO account are made by FEMA. You can take out up to one million US dollars every year. This is enough for people who own property in India and get rental income. If you have an NRE or FCNR account you can take out much money as you want without any limit. That is why some financial advisors say it is an idea to use these accounts for money that is not from rent.
To transfer money you need to have some papers ready. First you have to make sure you have paid all your taxes. This includes the taxes that were already taken out and any other taxes you might owe. Then a chartered accountant will fill out a form called Form 15CB. This form says that you have paid all your taxes. You or someone who is helping you will fill out another form called Form 15CA online. Your bank will look at these forms and your other papers before they send the money.
It is good to know that sending money to another country is not a thing that you have to pay taxes on. You pay taxes on the income before you send the money. Sending the money itself is not taxed. If you are sending money from an NRO account you do not have to pay something called TCS.
Usually when there are delays in sending money it is because the papers are not complete or correct or there are problems with taxes or there are issues with FEMA rules. You can avoid these problems if you plan ahead and get everything before you try to send the money. NRO account repatriation can be easy if you do things correctly. You just have to follow the rules, for NRO account repatriation and make sure you have all the papers.
People who own homes in Pune and do not live there can manage their properties with stress. These people usually set up a system to handle everything from the start. Here is how they do it.
First they get a Power of Attorney that is properly written and covers everything it needs to. They give this Power of Attorney to someone they trust like a family member or a professional. They make sure to register it with the Superintendent of Stamps in Pune. Then they hire a company to manage the day to day work like finding tenants collecting rent and taking care of any issues with the property.
They also set up a bank account in India called an NRO account and apply for a Lower TDS Certificate if they need to. This helps them not pay much tax. They hire an accountant who knows about taxes for people who do not live in India especially when it comes to owning property in Pune. This accountant helps them with their taxes. Fills out any necessary forms when they send money back to their home country.
It is also an idea to check in regularly with the person managing their property and their accountant. They should do this every months to make sure everything is okay with the property and every year to make sure their taxes are in order. If they do not manage their property correctly it can cost them a lot of money. For example if the property is empty they are not getting any rent.. If they do not take care of issues with the property right away it can cost more to fix them later.
Pune is a city for people who do not live in India to own property. The people who work with property and laws in Pune are used to dealing with people who do not live in India. There are people looking to rent homes in Pune, which means people who own property there can get a steady income from rent. The government has rules, in place to help people who own property in Pune from countries. All someone has to do is set up a system to manage their property correctly. Then they can get the benefits of owning property in Pune without the stress.
No. You can execute a Power of Attorney entirely from your country of residence. The process involves drafting the document according to Indian legal requirements, signing it before a notary and two non-family witnesses, getting it authenticated through either an Indian Embassy/Consulate attestation or an apostille (if your country is a Hague Convention member), and then sending it to your representative in India for adjudication and registration with the Superintendent of Stamps within three months of its arrival.
A General Power of Attorney (GPA) grants your representative broad authority across multiple property, financial, and legal matters, making it suitable if you want one document to cover ongoing management responsibilities. A Special Power of Attorney (SPA) is limited to a specific transaction, such as executing a single property sale, and does not grant broader ongoing authority. Most NRIs managing a rental property benefit from a GPA scoped clearly to property management powers, while NRIs planning a one-time sale often use an SPA for that specific transaction.
Rental income is taxable in India regardless of where you reside. You can claim a standard 30 percent deduction for maintenance, plus deductions for property taxes paid and home loan interest (with no upper cap for a let-out property, unlike the ₹2 lakh cap on self-occupied properties). Your tenant is legally required to deduct TDS at 30 percent on the rent paid to you and must file Form 15CA and 15CB when remitting this payment, since it’s a payment to a non-resident.
Yes. If your actual tax liability is lower than 30 percent after applying eligible deductions which is common for most NRI landlords you can apply for a Lower TDS Certificate (also called a Nil or Lower Deduction Certificate) from the Indian Income Tax Department before the rental period begins. This authorises your tenant to deduct TDS at your actual applicable rate rather than the default 30 percent, improving your monthly cash flow instead of requiring you to wait for an annual refund.
Rental income must be received into an NRO (Non-Resident Ordinary) account — this is the legally designated account type for India-sourced income for NRIs. Interest earned on the NRO account balance is taxable at 30 percent TDS, reducible to 15 percent under a Double Taxation Avoidance Agreement if applicable, provided you submit a Tax Residency Certificate. This is different from an NRE account, which is meant for foreign-earned income and offers completely tax-free interest.
NRO account repatriation is capped at USD 1 million per financial year under FEMA regulations, a limit that comfortably covers the rental income most individual NRI property owners generate. Before repatriating, you must ensure all applicable taxes are settled, your chartered accountant prepares Form 15CB certifying tax compliance, and Form 15CA is filed online before your bank processes the outward transfer.
Both approaches can work, but they suit different circumstances. A trusted family member works well if they have genuine availability, financial literacy, and willingness to manage ongoing responsibilities though informal arrangements can strain relationships over time. Professional property managers, typically charging ₹3,000 to ₹15,000 per month or 8 to 12 percent of rental income, offer structured accountability regular photo/video inspection reports, digital maintenance approval workflows, and dedicated legal support that’s often more sustainable for NRIs who want consistent, professional-grade oversight without burdening family relationships.
Not necessarily. Routine operational tasks property inspections, coordinating minor maintenance, and following up with tenants on rent payment — can typically be handled under a standard property management service agreement without requiring a registered POA. A POA becomes necessary specifically when your representative needs to execute legal documents, handle a formal property sale, sign a new tenancy agreement, or represent you in a court or municipal dispute.
The financial cost compounds quickly. A property generating a typical rental yield that sits vacant for an extended period represents direct, measurable lost income, and maintenance issues that go unnoticed without regular inspections tend to escalate into significantly more expensive repairs over time. Beyond the direct financial cost, society maintenance payments that lapse can trigger penalty charges or restricted access to society amenities, and unresolved property tax obligations can create legal complications that are far more difficult and time-consuming to resolve once they’ve escalated.
Yes. India has Double Taxation Avoidance Agreements (DTAAs) with most countries that have significant NRI populations, including the US, UK, UAE, Canada, and Singapore, governed under Sections 90, 90A, and 91 of the Income Tax Act. These treaties ensure you are not fully taxed twice on the same rental income. Claiming this relief correctly requires maintaining a valid Tax Residency Certificate and accurately reporting the income in both jurisdictions a process best coordinated between a chartered accountant in India and a tax advisor in your country of residence.
Disclaimer: Property prices mentioned are indicative based on market research as of 2024–25 and may vary based on project, floor, and amenities. Please contact our team for current pricing and availability.
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