Real Estate market in India has several options to offer which are designed as per the diversified needs and preference of different types of homebuyers. If it’s a cakewalk for a few, it’s hard to crack for many. And those many include NRIs who usually encounter opportunity seekers in this greedy scenario. Listed below are the important facts to be considered by the NRIs before buying a property in home turf.
- TDS benefits: On reinvesting the monetary gains into another property from the sold property, NRIs are expected to get Tax Deducted at Source (TDS) on their gains. This way they are not liable to pay any kind of tax in India. However, these benefits can only be availed by the NRIs if they reinvest within two years of selling the prior property.
- Inherited property’s benefits: If NRIs want to send the proceeds of property sale which they inherited from Indian resident, they do not need RBI’s permission if they fulfill certain conditions. However, the permission is required in case the Indian property is inherited from another NRI.
- Don’t be in a haste to sell it off: If an NRI sells off his property just 3 years after purchasing it, he has to pay a long-term capital gains tax of 20%. On the other hand, if he sells it before completing 3 years’ span, the capital gains tax will increase up to 30%.
- No scope of agro-land: If an Indian citizen is living outside the country or has Indian origin, he can acquire immovable property apart from farmhouses and agricultural lands. These acquisitions are regulated by FEMA.
- PAN card is mandatory: Indian PAN card can make your investments possible in the country as it is a mandatory document for the same.
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