Property Matters

The Indian diaspora in Australia, as in many other countries around the world, have achieved a certain kind of quiet success - a well-travelled career, a comfortable and tasteful home, and a life that has found an anchor but is still globally mobile. And, almost always, it includes a piece of India — an apartment in Bandra, a house in Bengaluru, ancestral land in Punjab, a flat in Kolkata rented out to someone one has never met. These seemingly ‘just pieces of land’ are quite often spoken of fondly, but unfortunately, less often examined carefully.

Owning property and earning income in India while living in Australia is not about some mundane transactions. It is a relationship — one that rewards attention but punishes neglect.

In Australia, processes linked to property ownership are structured. The system keeps records, the bank tracks payments, and the tax office remembers everything. In India, property ownership is chaotic. Someone occupies it, someone manages it, while someone else may pay for it. And that chain is rarely visible from thousands of miles away. It is risky to assume that because the property exists, it is being looked after and there are ways to control even without being present. That means written agreements, regular reconciliation of rent flows, and periodic reports, even when the person managing the property is family.

One thing that many NRIs understand a little late is, that paying India tax on earnings in India does not settle the matter. Australia taxes its residents on worldwide income. The Double Taxation Avoidance Agreement treaty between Australia and India provides avenues to prevent double taxation, not double reporting responsibility. Business income, rental income, capital gains, even interest from Indian bank accounts must be declared in Australia. Since availing benefits under the treaty requires filing of forms and declarations, it is advisable to take professional help, well in advance of the transactions.
Check International Taxation.

The other complicated aspect to deal with is that India’s tax year runs from April to March while Australia’s from July to June. For anyone earning in both countries, this creates a subtle but constant mismatch. Tax deducted in India may not align with Australian filing deadlines and refunds arrive after Australian tax has already been paid. What appears neat on one side of the world becomes messy on the other. As there is no playbook to deal with this, professional advice, specially where large numbers are involved, always helps.

As NRIs know very well, Australia is a country that trusts systems and records. India, on the other hand, trusts people and relationships. NRIs often make the mistake of viewing Indian realities through an Australian lens — expecting process where only personal follow-up exists. Delegating to family is natural but is often at the cost of documentation. A cousin who collects rent, or a WhatsApp message, are no substitute for a compliance framework and a contract. In fact, working through professionals, even if it costs a little more, leads to healthy and strong relationships with friends and family.

Lastly, most NRIs spend years building wealth and assume their Indian assets will simply go to the family. Indian succession law however works differently. It only recognises wills, probate, nominations, and Hindu Succession rules. If one passes away without an Indian will, their children in Australia may find themselves navigating Indian courts, local heirs, and property records that have not been updated in decades. A will in India avoids legacy turning into litigation.

In the end, it is not about how much one owns in India. It is about how well one remains in control of it — even from the other side of the world.