Why Realty Is The Best Bet For NRIs
Property prices are at the lowest
NRI investors should make the most of the slow real estate market. Historically, the price rise rate in India has always been higher than the matured markets of the West. This is the reason why India can offer more value for money to the investors, with better returns in less time as compared to other prominent real estate markets of the world.
Tax exemption
NRIs can invest in real estate in India and can still manage to save tax like a regular Indian resident. Tax deduction on home loans on principle repayment and interest component can be claimed by the NRIs. Apart from this, for a property sold after two years from the date of purchase, profit so earned on the capital gain is exempted from the income tax.
Rental income
NRIs can invest and earn rental income in India without any trouble. Though the 30 per cent TDS (tax deducted at source) has to be deducted by the tenant, the remaining amount can be repatriated under the Foreign Exchange Management Act rules. This proceeds earned through the sale of immovable property in India can also be repatriated under the act.
Retirement benefits
Though reverse mortgage is a more popular concept in the US, India is still gearing up for this kind of system. NRIs that tend to plan their retirement can invest in India and take advantage of reverse mortgage. The amount taken from the bank as a consequence of this type of mortgage is not factored in the taxable income of NRIs. This way, ageing NRIs can enjoy the benefits of their property in India. At the same time, they can take money from banks as a part of reverse mortgage of the property.
- by Surbhi Gupta
Source : Housing.Com
Source : Housing.Com
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