Buying property in India

Q: I am NRI from Sydney, Australia. I am planning to purchase first investment property in India. My investment strategy is to leverage high captial growth in India and bring money can to Australia and invest it on high yield (rental income) property here with minimum aussie loan.

My questions are
1. Best way to buy construction property keeping stamp duty/other expenses as low as possible? Thru NRE or NRO account or on relatives name?
2. Best way to repatriate money back to Australia keeping tax as low as possible? Thru NRE or NRO account or relative gifting property to me and I sell that property and deposit sell money in NRE account ?

mkbonline, Noida

11th January 2013

Investment Advice in Nainital

Follow Discussion

Also see discussions for

Nainital Investment Advice Investment Advice in Nainital

Replies (10)

Contact me... I have awesome plans for NRI'S and i can help you with tax exemption.... Drop me a mail chaudharymanoj1971@gmail.com ASAP

Manoj Kumar,

2nd March 2016

Comment

Hi..How is Delhi as option for investment specially for NRI..??

Jijo, Chennai

26th January 2013

Comment

Hi Eric..as such NRI's cannot acquire any type of agricultural land or farm house in India. But if you can take special permission from the Reserve Bank and also in consultation with Indian government then it is possible to acquire such kind of lands.

Rajkumar, Bangalore

24th January 2013

Comment

Thanks for the reply Pranab. I need to ask one more question. Can i acquire a agricultural land in India..??

Eric, Ahmedabad

24th January 2013

Comment

Yes Eric it need to be get attested from embassy else it will have no value.There is a particular POA format(to for purchasing an apartment. You need to pay the required amount i.e fee in US dollars for the endorsement and send it to your parents.Once it is notarized by the Indian Embassy then there is no need to notarize in USA and then your mother can buy property on your behalf.

Pranab Malakar,

24th January 2013

Comment

Hi, I am also an NRI from USA..I am thinking to buy a flat in India. My mother will purchase on my behalf and i want to give power of attorney to my mother for this purchase. Have some questions like Is there any need to notarize the Power or Attorney..?? or should i get it attested from Indian embassy in USA..??

Eric, Ahmedabad

24th January 2013

Comment

Hello Mkboline.. restriction of 2 residential property is per individual not per household. Repatriation is only permitted through a bank account which you have in India, even if such account is a Non-Resident ordinary account, provided you have paid all your taxes. If you buy a property in name of your relative and then they gift you..there is no tax for that but make sure that the purchase of property was done with rupee sources. And yes you don't have to hold your property for 10 years.

sumit, Mumbai

23rd January 2013

Comment

Hi Lokesh..let me correct you..If the property was acquired out of Rupee sources, NRI may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account. It also includes sale proceeds of assets acquired by way of inheritance or settlement.

Anoop, Mumbai

21st January 2013

Comment

To avoid all these issues, is it not Bette to just send money to parents account in regularly in small amount and purchase. Contruction linked plan. Lateron, when they sell off property,they can send all sales proceed to us as a gift. I think outward remitance limit is 1 mil USD as well. Your thoughts?

mkbonline, Noida

21st January 2013

Thanks for your reply. 1) Is the restriction of 2 residential property per individual for per household. I have a spouse and a baby. Can they also own 2 residential property and sell it to send profit back to overseas? 2)Is it better to buy property from NRE or NRO account or parent’s name (who can lateron gift)? . If buying on parents name , Is there a limit on the gift amount per year where gift amount is income from rent or sales proceed. Tax on this gift? 3) since there is no limitations in repatriating sales proceed of commercial property, is it possible to re-invest sales proceed of more than 2 residential properties into a expensive commercial property and then repatriate the sales proceed from commercial property?

mkbonline, Noida

15th January 2013

Comment

Also let me know if you can recommend any good NRI tax accountant in Delhi region

mkbonline, Noida

15th January 2013

Hii..if you are purchasing a property by your NRE account then you can only repatriate the amount that you have spend on acquiring the property. I hope you know that here the restriction is that you can only repatriate money for two residential properties But if you use your NRO account then the restriction is more i.e you cannot repatriate that money for ten years and on the payment of taxes you can take your money back. And if you but property in the name of you parents then it becomes your inhereted property and for this the government allows you to repatriate almost 4 crore in a year. Furthermore if you have any confusion, it is best to take a legal advice from property lawyers. Please do confirm the above things and do let me know.

.

Lokesh Patwa,

11th January 2013

Comment

Ask a Question

Related Forum Discussions

Shubham Vatika, Nainital

REPLIES

looking to buy a plot in Mukteshwar.

wanna book one flat price list pls

REPLIES

Naini kingdom details

Total cost for 3bhk after all discounts

View more Discussions(+)

Follow A Topic

CommonFloor Property Search Mobile App now available on Android, iOS and Windows!