Dev Singhraha
Relocation Expert
Indian property now is considered to be hot property. Therefore, it’s an attraction for many of the Non-Resident Indians (NRIs) to invest as for NRIs real estate is a less risky and profit making investment. The present government has made the process simpler for NRIs to make such investment.

Government’s Initiatives
To quote some examples:
 
  • NRIs making non-repatriable investments in India are deemed to be domestic investments.
  • If any funds were taken from the NRI’s domestic account in India (in Rupee) for any investments in real estate, then those investments are usually considered to be as domestic investments.
  • Regulations for NRI Investments
  • Despite numerous facilities, there still several confusing regulations for NRI investments in real estate within India that play vital roles. There are companies who help you in understanding such norms that govern money transfer to India. And if you are an NRI, they also help you understand how you should transfer money to India.Quick Tips to Start With
  • NRIs who intend to buy property in India can use funds in their Non-Resident External (NRE)/Non Resident Ordinary (NRO) Savings account. They can also use a Foreign Currency Non-Resident (FCNR) account. Overseas income or savings can be transferred to India by NRIs.
  • money remittance by NRIs can be done through normal banking channels from their location of the home to India. For example, NRE and NRO accounts are considered as any other typical banking channels. Nevertheless, care must be taken while transferring money from such accounts. Some countries agreed with India with Double Taxation Avoidance Agreement while transferring money. NRIs must check for such agreement. In the absence of such agreement, the amount is taxable in both the countries.
  • An NRI is eligible to take a home loan of 80 percent of the money from a bank or any financial institution. The NRI is expected to repay the principal amount along with the interest rate via the same channel.
  • Tax deductions on of the interest payments are liable on NRIs with no upper limits. Also, they need to pay capital gains tax in case they decide to sell off the real estate assets. NRIs are entitled to apply for a home loan against the deposited money in their NRE and/or FCNR account, provided the amount is up to INR 1 crore.
  • It is simpler and easier to buy a property with money received from recurring banking. NRIs need to have an NRE account for payouts. NRIs require an NRO account to deposit and transfer funds to India. After deduction of money as income tax and capital gains tax payments, they can repatriate the money to their foreign account.
  • Equated monthly instalment (EMI) payments is another simple method for the NRI's apartments via their NRE account or NRO account or event via FCNR bank account. This is also possible through direct remittance of money from abroad.So, ensure that you follow the tips before you make a decision to buy a property in India.
     
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