Ankit Gulgulia (Jain)
always been keen and interested to make property acquisitions in India for
either Return purpose or for staying in old age etc. If you are a NRI reading
this post, know this that we will quickly sum up few FEMA Compliances, Impact
of Income tax and Applicability of GST on your Property Purchase in this post.
QUICK FACT à Overseas
investments have surged 137 per cent, from USD 3.2 billion during 2011-13 to
USD 7.6 billion during 2014-16.
that rules are fairly simple for NRI Investment.
of Property:– Any
NRI/PIO can acquire by way of purchase any immovable property (other than
agricultural land/ plantation property / farm house) in India. This is General
Permission with no approval from Govt / RBI Required. Hence an NRI is allowed
to invest in both residential and commercial properties in India. However, any
agricultural land, farm house and plantation property can be owned only if it
is inherited or gifted to the NRI
of Property:- NRI/PIO
may transfer any immovable property in India to a person resident in India. He
may transfer any immovable property (other than agricultural land or plantation
property or farm house) to an Indian Citizen resident outside India or a PIO
resident outside India
Citizens Prohibited:- Citizens
of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan,
Macau or Hong Kong cannot, without prior permission of the Reserve Bank,
acquire or transfer immovable property in India, other than lease, not exceeding five years.
remitted to India through normal banking channel
held in NRE/ FCNR (B) / NRO account maintained in India
payment can be made either by traveller’s cheque or by foreign currency notes
payment can be made outside India
Just like Normal citizen with upto 80% of Value of Property.
can be repaid by:-
Income – Liable to Tax
Gain on Sale of Property – If sold
within 2 years of acquisition, it is liable to short term capital gains taxable
at Slab Rate.
applicable. However, unlike short-term capital gains, exemption can be claimed
under sections 54, 54 F and 54 EC
U/s 194IA of Income Tax Act,
1961 – Where the property is 50 Lacs or more – TDS @ 1% u/s 194IA shall be applicable also.
Project, then NO GST Applicable.
Value of Contract liable to 18% of Tax chargeable by seller.
as per provisions of GST.
the process has been largely simplified by RBI, a property decision shall
always be dealt with complete documentation and broader acumen to all legal
compliance is a MUST !
CA Ankit Gulgulia (Jain) is Fellow Member of ICAI, Certified IFRS & Business Valuation from ACCA UK and is Practising Chartered Accountant with 8 Years plus of Rich Experience in Audit, GST, Income Tax, DGFT, Valuation, Strategic Advisory, Matters of FEMA, FDI, NCLT, RERA, ROC, SEBI, RBI, M&A, Fundraising, Startups etc as Founder of AGA, Chartered Accountants. AGA Works in wholesome business solutions right from scratch of Company Incorporation to Compliances all under One Roof. He also takes interest in being Virtual Chief Financial Officer (CFO) for Small and Medium Enterprises for Guiding them with All Business, Tax & Strategic Business Decision Making . To Know More, Learn here or contact us at firstname.lastname@example.org