NRI Corner

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Infinity FinVest Solutions is one of the premier Real Estate and Investment solutions provider company, providing a varied range of services for NRI Clients. It collaborates with leading professionals and organizations to offer innovative solutions to deliver excellence in every aspect of Real Estate consulting to NRI Investors and property owners.

As an Asset Manager for NRI properties Infinity looks into every aspect of property management, starting from maintaining property inventory, recommendation and suggesting plan of action regarding property, Sale / Purchase / Leasing of property, taxation of income and repatriation of funds, Legal advisory to complete property documentation and many such services. Also offering specialized consulting for Investments in Real Estate through models such as Joint ventures, Pre - launch and bulk discount deals and in prominent commercial office spaces.

Procedure for purchase of property

NRI's holding Indian passport does not require prior permission of Reserve Bank of India to buy residential or commercial property in India. Further, there is no limit on the number of residential or commercial properties that an NRI can purchase in India.

The purchase consideration may be paid either by remittance of funds from abroad through normal banking channels or out of NRE / FCNR / NRO account.

Income accruing by way of rent from the properties purchased or acquired by inheritance will not be allowed to be repatriated abroad even if the purchase consideration was met out of NRE / FCNR account. It is however, necessary for foreign citizens of Indian origin to declare such property to RBI within a period of 90 days from the date of purchase in the prescribed IPI 7 to the Chief General Manager, Exchange Control Department, Foreign Investment Division, Central Office Department, Foreign Investment Division, Central Office, RBI Bombay.

Financing to purchase of properties

NRI / PIO can avail of housing loan in Rupees from an Authorized Dealer or a Housing Finance Institution subject to certain terms and conditions laid down in Regulation 8 of Notification No. FEMA 4 / 2000 RB dated May 3, 2000 viz. Foreign Exchange Management (Borrowing and lending in rupees) Regulations, 2000.

RBI also allows NRIs to take a loan for repairs and renovations of their home. The buyer, however, has to adhere to the FEMA regulations at the time of taking the loan. "Banks cannot grant fresh loans or renew existing loans in excess of Rs 1 crore against NRE and FCNR deposits, either to the depositors or to third parties".

Such loans can be repaid in the following manner :

  • By way of inward remittance through normal banking channel or
  • By debit to the NRE / FCNR/NRO account of the NRI / PIO or
  • Out of rental income from such a property
  • Cheques from your local relative's bank account

Home loans can be availed for any property ready for possession or under construction, construction of property on an owned plot or for alterations to the existing property. Buying of a plot also qualifies for a home loan.

Things an NRI must remember while selling property in India

  1. Profit Earned on Sale of Properties : Any incomes earned by way of selling of properties in India by NRIs are liable to pay capital gain tax under the Income Tax Act 1961. These gains can be Short Term Capital Gains (STCG) or Long Term Capital Gains (LTCG) depending upon the period of holding of the property. If the holding period is less than three years (36 months) before selling it, then it is considered a short-term capital asset and if it is sold after three years (36 months), it is a long-term capital asset.
  2. Tax on the Gains : Any NRI will be subject to a TDS of 20 per cent on the long term capital gains (LTCG). If an NRI sells the property within 3 years of purchase, he/she will be liable for short term capital gains (STCG) tax at your respective tax slab. Short term capital gain is calculated as the difference between the sale value and the cost of purchase (no indexation benefit is available). For NRIs STCG will be subject to a TDS of 30 per cent irrespective of their tax slab.

For more details and further transaction, please Contacts us.

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