Previous Next

NRI Property Management in Kerala 2026 and What Has Changed for Owners Abroad

On 1 April 2026, the Income Tax Act, 2025, replaced the 1961 law. Tenants, banks, and chartered accountants now quote new section numbers and new forms. If you own a flat or house in Kerala from abroad, you may have noticed this first when your rent arrived after tax or when your bank asked for a form you had not seen before.

This guide explains NRI property management in Kerala 2026 in plain language. It separates what has really changed from what stayed the same. It also covers problems that no tax rule can fix, such as a closed house in the monsoon. By the end, you will know what to check, who can help, and when a professional property manager makes sense.

What has changed for NRI property owners in Kerala in 2026

Short answer: The biggest confirmed change is the tax law itself. Most other rules for NRI owners look the same as before.

The table below sorts the main points into changed, unchanged, and still developing.

Several tax guides describe section 393 as a restatement of earlier rules. That suggests the shift is mostly in section numbers and paperwork, not in how much tax you pay. Your own tax position can still be different, so confirm it with a chartered accountant.

This article reflects information available in October 2026. Rules can change, so check official sources before you act.

How the new income tax law affects rent from your Kerala property

Short answer: Yes, tax is deducted from rent paid to an NRI landlord before it reaches you. From 1 April 2026, that rule sits in section 393(2) of the new Act. It replaces old Section 195.

The person paying the rent has to deduct the tax. That includes an individual tenant, which surprises many families in Kerala. A tenant who has only ever paid rent to resident landlords may not know the process.

Rent paid to an NRI has generally been taxed at 30 per cent, plus cess and any surcharge. Your income and any tax treaty with your country of residence can change the final picture. Ask your chartered accountant for the current rate that applies to you.

Here is a simple illustration. If a tenant pays ₹30,000 a month, 30 per cent comes to ₹9,000 before cess and surcharge. This is only an example and not tax advice.

Some NRIs apply for a lower deduction certificate when their real tax is less than the amount being deducted. Whether that makes sense depends on your total Indian income, so it is a decision to make with a CA.

Two habits help in practice:

• Add a line to the rental agreement that says who deducts and deposits the tax.
• Ask your tenant for the tax deduction records and keep them with your documents.

Can you still send Kerala rent money abroad?

Short answer: In most cases, yes. The money normally goes through your NRO account, after tax.

Rent from an Indian property is usually credited to an NRO account. RBI rules allow NRIs to remit up to USD 1 million per financial year from NRO accounts, subject to conditions and taxes paid. Banks commonly treat rent as current income, which is handled differently from sale proceeds. Ask your bank how it applies the limit to your case.

What did change is the paperwork. The Income Tax Department says Form 145 now replaces Form 15CA. Form 146 takes the place of the CA certificate in Form 15CB. A CA certificate on Form 146 is needed only in some cases, such as taxable remittances above ₹5 lakh in a tax year where no certificate from the tax officer is held.

Your CA can tell you which part of Form 145 applies to your remittance. It is worth asking before the first transfer of the new financial year.

Why land records and the digital resurvey matter when you live abroad

Kerala is re-surveying land digitally under the Ente Bhoomi programme. The work is being done in phases, so some villages are covered and others are not yet.

Once your village is covered, your land gets a new digital sketch and a recorded extent. If those do not match your deed, you may face trouble later when you sell, mortgage, or pay tax. A mismatch is far easier to fix while you can still collect old papers.

Three terms come up often:

• Survey number identifies the land on the ground.
• Thandaper number identifies you as the tax-paying holder in the village record.
• Record of Rights links the holder to the land.

Once a year, search your land on the Ente Bhoomi portal (entebhoomi.kerala.gov.in) and check these points:

• Your name is correct as the holder.
• The extent, in cents or ares, matches your deed.
• The survey number and subdivision are right.
• Land tax and building tax receipts are up to date.
• Nobody has subdivided your survey number without telling you.

Some records still need a visit to the village office before they can be corrected. If you cannot travel, a trusted representative with a properly drafted authority can handle that visit. For the full list of papers to keep, read our guide to NRI property ownership documents.

Kerala problems the new rules do not solve

A tax form cannot fix a leaking roof. In Kerala, a house nobody lives in faces risks that build quietly through the year.

Picture an owner in the Gulf with a closed house in Kochi or Kozhikode. A relative drops by twice a year to open the windows. By the time anyone notices a damp wall or a termite trail, the repair bill is much bigger than it needed to be.

Before the monsoon

• Clear gutters, drains, and rainwater pipes.
• Check the roof and terrace for cracks and loose waterproofing.
• Test the electrical connections and switch off anything not in use.
• Inspect the compound wall, gate, and boundary.
• Cut back overgrown plants near the walls and the roof.

After the monsoon

• Look for damp patches, mould on walls, and mould inside wardrobes.
• Check ceilings and window frames for fresh water stains.
• Look for termite trails near doors, frames, and wooden furniture.
• Clean the water tank and run the taps to flush the pipes.
• Walk the plot to see whether the boundary or garden has changed.

Ask whoever visits for dated photos and a short written note. A visit without a record is hard to rely on later, especially if a dispute with a tenant or a neighbour comes up.

Family, caretaker, software or a property manager, which works best

Short answer: It depends on whether the property is empty or rented, and how much follow-up you can do from abroad.

Many owners end up combining two of these. A relative may stay as the contact for family matters, while a manager handles the routine work.

Before you hire anyone, ask these questions:

• What is included in the fee, and what is billed separately?
• How will inspections be reported, and how often?
• Who approves repair costs, and above what amount?
• How and when does rent reach my NRO account?
• What happens if the tenant leaves early or stops paying?
• How can I end the agreement, and with what notice?

When a property manager makes sense for NRI owners

A manager makes the most sense when the property is rented, when relatives cannot follow up regularly, or when long-distance phone calls have become a burden. The work is mostly routine. Someone has to find and verify a tenant, collect rent, inspect the house, and arrange repairs.

Roomskart offers NRI property management and rental property management for owners in Kerala. Services include tenant search and verification, rent collection, property inspection, and maintenance. A property manager can also be your single point of contact, so you are not coordinating with a plumber and a tenant across time zones.

Whichever provider you consider, ask for the scope, fees, and reporting in writing first. That one step prevents most misunderstandings later.

Frequently asked questions

Is TDS deducted on rent paid to an NRI landlord?

Yes. Tax is deducted from rent paid to an NRI, and from 1 April 2026 the rule sits in section 393(2) of the Income-tax Act, 2025. The usual rate has been 30 percent plus cess and any surcharge. Check the current figure and any treaty benefit with a CA.

Can NRIs send rental income from Kerala abroad?

Usually yes. Rent normally goes into an NRO account, and funds can be remitted after tax within RBI limits and with the right forms. From 1 April 2026, those forms are Form 145 and, in some cases, Form 146.

Do NRIs need a property manager if relatives live in Kerala?

Not always. Relatives can handle a vacant house for a while. A manager becomes more useful when the property is rented or when a family cannot give regular time, keep records, or handle a tenant dispute.

How often should a vacant house in Kerala be checked?

There is no fixed rule. A sensible approach is regular visits, with extra checks before and after the monsoon, depending on how exposed the house is. Dated photos help you see changes over time.

Conclusion

The tax paperwork for NRI owners changed on 1 April 2026, but most everyday risks still come from distance. Rent reaches you after tax, land records are moving online, and a closed house in Kerala still needs regular care.

Start by checking your land records and talking to your CA about rent tax and remittance forms. Then decide who will look after the property. If you want a professional to take over the routine work, you can speak to the Roomskart team about your property.