The following strategies for investment are viable options if an NRI is looking at investing in India:
Purchase of Assets by NRI for Self Use:An NRI can make investment in a residential property for his own use in the form of ownership flat or purchasing a piece of land and constructing a house thereon.
Real Estate Investment for Rental Income:The NRI can invest in a residential property or in a commercial property to regulate a steady flow of rental income. The formalities of taxing rental income are simple, easy and investor friendly.
Buy and Sleep for Three Years:If a Non-Resident Indians objective is to invest in real estate in order to make money by selling it, then for them, it is highly suggested that they should not sell their real estate at least within three years of purchase of the real estate.
Repatriation of Rental Income and Sale Proceeds of Property:It is possible for a Non-Resident Indian to deport the rental income received from investment in real estate in India within the provisions of the Foreign Exchange Management Act.
Income-tax Compliances:Whenever a Non-Resident Indian makes investment in immovable property in India; he is not bound to conform to any formality of the law. Nevertheless, it is logical that the Non-Resident Indian should get a PAN Card i.e. Permanent Account Number Card so that if the Non-Resident Indian has a definite rental income coming in through any of his rental property in India, then it is easy for him to make tax compliances.
Reverse Mortgage Benefit for NRIs:The amount taken from the bank consequent to Reverse Mortgage is not added as income of the Non-Resident Indian. Therefore, this concept of Reverse Mortgage really happens to be a brilliant method of having your property in India along with taking money from the bank consequent to Reverse Mortgage of the property.
The Importance of Circle Rate:At any point of time whenever the Non-Resident Indian is wanting to buy the property in India, he should be careful to determine the Circle Rate of the property, mainly due to the point that the Stamp Duty will be billed on a minimum value of the Circle Rate or the actual price whichever is higher.