8 Things an NRI Should Know Before Investing in Real Estate in India

Are you an NRI looking to Invest in Real Estate in India? Here is everything you need to know:

1. As an NRI, one can purchase both residential and commercial properties. While there is no restriction on the number of properties owned by NRIs, they cannot buy agricultural lands, farmhouse, or plantations.

2. However, ownership of agricultural land through inheritance or gift is allowed for NRIs.

3. There are no restrictions on the investments made by an NRI.The investment can be made by them on their own or by a relative through Power of Attorney (POA).

4. When buying a home in India, NRIs are entitled to tax benefits that are similar to the ones enjoyed by the citizens.They can claim up to INR 1 lakh of deduction under Section 80C of the Income Tax Act, 1961.

5. Similarly, NRIs are eligible for deduction on stamp duty, registration, municipal taxes, and a 30% deduction on rent. These are some of the benefits enjoyed by a resident as well.

6. Interestingly, NRIs can also avail housing Icon like any Indian citizen. However, the documentation process is different. 

7. While a resident can claim a deduction of up to 1.5 lakh on home loan interest, NRIs do not have a fixed limit. 

8. NRIs, however, have to pay TDS for a property over INR 50 lakh at 1%. A capital gain tax is also levied while selling the property.

Guest post published by Sobha Developers