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THE NRI DESK
We, at Prime Pune understand that when you are thousands of miles away from India, and want to transact in property back home, it is vital that you receive information that is transparent & dependable. We are constantly available for you, to provide you with the latest property information and to assist you with buying, selling or leasing. You will have access to current information about true-value residential and commercial real estate in Pune. We also monitor market trends and you can subscribe to a monthly e-letter from us that keeps you informed about the latest property news.
Our Property Management solutions will help your property in Pune to reach its maximum renting potential, while ensuring it receives proper maintenance. This enhances the asset value of your property and ensures local representation to solve any emergency problems. Whatever be your requirement, we will offer tailor made solutions that meet your properties’ specific needs.
This special concern in not without reason. The Prime Pune team comprises of individuals who were NRIs themselves and of those whose immediate family and friends are NRIs. It will be a privilege & an immense pleasure to connect with and to assist you. You are welcome to visit us when you are in Pune and benefit by accessing information that will help you to buy, sell, rent or let out at maximum potential.
RELOCATION TO INDIA
Are you returning to India, to begin afresh? We are here to help you locate homes & commercial spaces available for Sale & Rental, as your needs be, that will stand true to your expectations in terms of quality, convenience, location, hygiene and aesthetics. We a strong local brand and would be able to assist you with any information that would help you relocate into the new home or business in Pune City. New beginnings inspire us and it would be our previlege to be extend all the support we can. Time has proven: we grow with our clients.
NRI
Person of Indian Origin
Stages of Property Purchase
Purchase of Property in India
Housing Finance
Mortgage
Sale of Property in India
Rental Income
Regulations regarding acquisition and transfer of immovable property in India by a person resident outside India have been notified vide RBI Notification No. FEMA 21/2000-RB dated May 3, 2000 as amended vide Notification No. FEMA 64/2002-RB dated June 29, 2002 and Notification No. FEMA 65/2002-RB dated June 29, 2002 and relevant directions issued in the form of A.P. (DIR Series) Circulars.
NRI
An NRI is a Person Resident outside India who is a citizen of India or a Person of Indian origin. A Person resident outside India is a person who has gone out of India or who stays outside India, in either case - For or on taking up employment outside India, or - For carrying on outside India a business or vocation, or - For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period
Person of Indian Origin
A person of Indian origin is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who: - At any time, held Indian passport; - Who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)."
Stages of Property Purchase:
1. Selecting the right property.
2. Document verification.
3. Price Negotiation & determining the payment schedule.
4. Documentation including payment of Stamp Duty and getting the documents registered.
5 Collecting the Registration receipts.
6. Guidance to locate suitable financial institutions and banks, following up until the
disbursement stage.
7. Possession inspection.
8. Taking physical possession.
9. Property management
PURCHASE
You can invest in India if you are:
> An Indian citizen.
> A Person of Indian origin (PIO), who is an individual, who at any time held Indian passport / was himself/ herself a citizen of India or whose father or grandfather was a citizen of India & is not a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan.
An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/ plantation property or a farmhouse.
Under the general permission, available NRI/PIO may purchase residential / commercial property in India out of funds remitted to India through normal banking channel or funds held in his NRE/FCNR (B)/NRO account. No consideration shall be paid outside India.
An NRI/PIO who has purchased residential/commercial property under general permission is not required to file any documents with the Reserve Bank.
There is no restriction on number of residential/commercial properties that NRI/PIO can purchase under the general permission available.
A person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India as per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999.
Housing Finance
An NRI/PIO can avail of housing loan in rupees from an authorized dealer or housing finance institution in India approved by the National Housing Finance Bank for purchase of residential accommodation or for the purpose repairs/renovation/improvement of residential accommodation subject to certain terms and conditions.
Such loans can be repaid by the borrower by way of inward remittance through normal banking channel or by debit to his NRE/FCNR (B)/NRO account or out of rental income derived from renting out such property. The borrower’s close relatives through their account in India can also repay such loan by crediting the borrower's loan account.
Repayment of loan in foreign exchange is treated as equivalent to the foreign exchange received for purchase of residential accommodation.
MORTGAGE
An NRI or a PIO can transfer by way of mortgage his residential / commercial property to an authorized dealer/housing finance institution in India.
An NRI or a PIO may transfer by way of mortgage his residential/commercial property in India to a party abroad after seeking seek prior approval of RBI.
A foreign national of non-Indian origin resident in India or outside India should seek prior approval of RBI to seek transfer by way of mortgage his residential/commercial property in India acquired with the specific approval of Reserve Bank to a party in India or abroad. However, immovable property purchased by a person resident outside India who has established a Branch Office or other place of business for carrying on in India any activity in accordance with FERA/FEMA regulations, may under general permission available, mortgage such a property with an authorized dealer as a security for any borrowing.
SALE
An Indian citizen can sell immovable property to any other Indian citizen or person resident in India or a PIO.
A lock in period of three years is set for a NRI desiring to sell property. This is with accordance to the FEMA regulations. NRI can sell property only after three years from the date of acquisition of the property or from the date of payment of the final installment of the consideration for its acquisition, whichever is later. Purchase / Sale of Property.
No lock in period is applicable for sale residential/commercial property purchased out of inward remittance/debit to NRE/FCNR (B) account.
A PIO can sell immovable property only to a person resident in India. A PIO would need to seek Reserve Bank prior approval to transfer by way of sale residential/commercial property in India to a NRI or a PIO.
Under the general permission, available NRI/PIO may transfer by way of sale his agricultural land/plantation property/farm house in India to a person resident in India who is a citizen of India.
An NRI/PIO may repatriate the sale proceeds of residential/commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE/FCNR (B) account. The amount to be repatriated should not exceed the amount paid for acquisition of residential/commercial property (a) in foreign exchange received through normal banking channel or by debit to FCNR (B) account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid by debit to NRE account. The sale proceeds of residential commercial property in India acquired by way of debit to NRO account cannot be repatriated and should be credited to NRO account only.
Repatriation of sale proceeds of residential property purchased by NRI/PIO out of funds remitted to India through normal banking channel or funds held in his NRE/FCNR (B) account is restricted to not more than two residential properties.
The sale proceeds of residential/commercial property received by way of gift by NRI/PIO should be credited to NRO account only.
Sale proceeds of any immovable property inherited by NRI/PIO from a person resident in India can be remitted abroad .Amount not exceeding USD one million, per calendar year subject to production of documentary evidence in support of inheritance and Tax clearance certificate/no objection certificate from Income Tax authority to authorized dealer for remittances. However, if a PIO is a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran he should seek prior approval of Reserve Bank with documentary evidence in support of inheritance and tax clearance/no objection certificate from Income Tax authority. This remittance facility is not available to a citizen of Nepal or Bhutan
Sale proceeds of any immovable property in India inherited, by a foreign national of non-Indian origin resident outside India, from a person resident in India can be repatriated by him Amount not exceeding USD one million, per calendar year subject to production of documentary evidence in support of inheritance and Tax clearance certificate/no objection certificate from Income Tax authority to authorized dealer for remittances. However, a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran shall seek prior approval of Reserve Bank with documentary evidence in support of inheritance and tax clearance/no objection certificate from Income Tax authority. This remittance facility is not available to a citizen of Nepal or Bhutan.
Sale proceeds of any immovable property in India inherited, by a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin resident outside India), from a person resident outside India cannot be repatriated by him or his successor. He needs to seek prior approval of Reserve Bank with documentary evidence in support of inheritance and tax clearance/no objection certificate from Income Tax authority.
If the rupee loan availed by NRI for purchase of residential accommodation was repaid either by inward remittance or by debit to NRE/FCNR (B) account, the sale proceeds of such property can be repatriated.
A foreign national of non-Indian origin whether resident in India or outside India would need to seek prior approval of Reserve Bank for transfer by way of sale residential/property in India acquired with the specific permission of Reserve Bank to a person resident in India or outside India.
A foreign national of non-Indian origin resident outside India would need to seek prior approval of Reserve Bank for transfer, by way of sale, agricultural land/plantation property/farm house acquired in India.
RENTAL INCOME
An NRI/PIO can let out the residential/commercial property purchased out of foreign exchange/rupee funds, if not required for immediate use. Rent received, being current income may be credited to NRO/NRE account or remitted abroad.
Income from house property “this is the term used for the income that is derived from renting out a property. The Annual value will be subject to taxation after allowing deductions for (a) 30% of annual value (b) interest payable on borrowed capital for acquisition of property. Annual value is higher of (i) Actual rent received/ receivable or (ii) fair rent of the property. If the property is let out as a complete business centre wherein the purpose is to provide a composite service of providing fully furnished infrastructure for commercial use, the income will be taxed as business income. TDS would have to be deducted from Rental income.
Withhold tax rate
Following are the withholding tax rate as per Finance Act 2004 for FY 2005-06
Rental / business income - 30% + applicable surcharge
Short term capital gains - 30%+ applicable surcharge
Long term capital gains - 20% + applicable surcharge
Surcharge is 10% for individuals if taxable income exceeds Rs.8.5lacs, else no surcharge. The tax laws may vary in future because of amendments, modifications, etc.
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