For Indian residents, you will be paying taxes on rental payouts and on capital appreciation. Capital Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the partners capital and loan were held (short-term vs long-term). Short-term Capital Gain will be applicable if the Partners capital and Partners loan are sold before 24 and 36 months respectively This will be taxed at the rate applicable to the investor. Long-term capital Gain will be applicable if the Partners capital& Partners loanare held for more than 24 and 36 months respectively. It will be taxed at 20%, irrespective of the quantum of gains. The benefit of indexation may be explored in the case of long-term capital gains. (Holding Period > 2 years for Partners capitaland 3 years for partners loan).