Tax Implications for NRIs - Goel Ganga Developments

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Tax Implications for NRIs

When investing in real estate in India, Non-Resident Indians (NRIs) are subject to registration fees and stamp duty at the time of purchase. However, they also have access to various benefits similar to those available to Indian residents, particularly concerning home loans.

Home Loan Norms for NRIs:

Loan Financing: Financial institutions can finance up to 80% of the property’s value, with the remaining amount to be provided by the NRI.
Down Payment: The down payment amount can be remitted from the NRI’s place of residence through normal banking channels, such as NRO (Non-Resident Ordinary) or NRE (Non-Resident External) accounts in India.
Repayment: Both the principal amount and interest on the home loan must be repaid through similar channels, i.e., NRO/NRE accounts.

Taxation and Benefits:

Tax Deductions: The interest paid on the home loan is deductible from the NRI’s taxable income without any upper limit, providing significant tax advantages.
Capital Gains Tax: NRIs are liable for capital gains tax as per the Income Tax Act if they sell the property. The tax amount is deducted at the time of sale proceedings.

Repatriation of Funds:

Once the relevant taxes, including income tax and capital gains tax, are deducted, NRIs can repatriate the funds from their NRE accounts to their foreign accounts.

Considerations for NRIs:

NRIs must adhere to the taxation laws of both India and their country of residence, especially if their country follows worldwide income taxation.
It’s essential to stay informed about any Double Tax Avoidance Agreement between India and their country of residence to avoid double taxation.

Conclusion:

Investing in Indian real estate offers NRIs various financial benefits, including tax deductions on home loan interest and the ability to repatriate funds. However, it’s crucial for NRIs to understand the legal and tax implications associated with property ownership and transactions in India. Consulting with financial advisors or legal experts can help NRIs navigate these complexities and make informed investment decisions.

Channel Partner Registration Terms and Conditions

First Customer Visit: The first visit of the customer must be with the Real Estate Agent or confirmed via email for the meeting. If it is found that the client has already visited directly, no brokerage will be given to the broker.
Brokerage Payment: A brokerage of 2% of the flat consideration value for all projects of the company will be payable upon receipt of 20% of the Flat Consideration value and on registration of the Agreement for Sale.
Payment Currency: All payments to Real Estate Agent shall be made in Indian Currency after deduction of applicable taxes. The payment shall at all times be subject to being permitted and valid under applicable policies, laws, orders, and regulations.
Invoice Requirements: The Real Estate Agent shall raise an invoice for the amounts payable by the Company with proper GST Number & Pan Card Details. Each invoice shall be delivered to the address of the company specified by the Company, by courier or by hand delivery, and the Company agrees to acknowledge the same.
Payment Timelines: Subject to the fulfillment of Condition (3), the Company shall attempt to pay the Commission within 30 days of receipt of the invoice. All payments shall be made subject to deduction of tax at source.
Client Visits: If a transaction could not be concluded during his visit & client comes after three months without the Channel partner, then the lead will be considered fresh unless the customer walks in with the Channel partner.
Sharing of Brokerage: If a client has made the first visit with one Real Estate Agent and the second visit with another Real Estate Agent, the brokerage will be shared equally.
Transaction Timeline: For all types of Transactions, the booking has to happen within 60 days from the date of the first visit only then the brokerage will be given to the Real Estate Agent.
Marketing Guidelines: The Real Estate Agent will only market the project by giving the marketing collaterals provided to him/her/them by the company and not misrepresent anything which is not being provided by the company.
RERA Compliance: The Real Estate Agent shall have to mention his RERA Registration Number and also project Registration Number under RERA in all his presentations either or of website /public platform/marketing material or such other material.
Misrepresentation: In the event it appears that the Real Estate Agent has in any way misrepresented the project details and/or overcommitted any amenity/facility which is not there on the RERA website then the Real Estate Agent shall only be responsible to make good any loss that may be caused to the company. Further, the company may at its option cancel the registration of the Real Estate Agent.
Marketing Material Approval: In case any marketing material that has been created by Real estate Agent, the same needs to be approved by the Company.

Required Mandatory Documents for Registration:

Completely filled Channel Partner registration Form
Copy of RERA Certificate
Visiting Card
1 Photograph
Address proof
Copy of Competency Certificate

All Channel Partners should have RERA Registration Number, GST Number, and PAN Card Number.

Goel Ganga Developments | Bund Garden Rd, opp. The Poona Club, Camp, Pune, Maharashtra 411001 | ask@goelganga.in | +91 2026124265 / 67 | www.goelganga.in