Even if you have kept the house for your own use and not let it out, estimate the deemed rental income from it and pay tax on it Many high net worth individuals who own houses abroad have in recent times been questioned by income tax officials for not having paid tax on the “deemed rental income” from those properties. It, therefore, becomes important for owners of foreign properties to understand the concept of deemed rental income and their tax liability on it. For tax purposes, one house (in India or abroad) is treated as self-occupied. The owner has to pay tax on rental income on the other house (or houses). If the other house is not rented out, he has to arrive at a deemed or notional rental income and pay tax on it. “A person resident in India is liable to pay tax in India on his global income. Hence, rental income from house property — let out or on deemed basis — situated abroad is taxable in India. The income tax law does not make any distinction between house properti