How can NRI’s buy a holiday home in India?
The enthusiasm around holiday homes in India has only increased in the past few years. From owning one at pristine locations of the country to simply considering it as a beneficial investment, buying holiday homes is not just a great option for Indian residents but also for NRIs. With new real estate properties emerging every day at favourable destinations and the process becoming much more lucrative for Indians abroad, it is fairly easier for them to buy a holiday home within the country. Here is how they can do so!
The documents required for an NRI to buy holiday homes in India obviously vary from those that an Indian resident needs to have. Firstly and the most important one would be an Indian passport. If a person possesses a passport of another country, they would then require a POI (Person of Indian Origin) or an OCI (Overseas Citizen of India). Second important document would be the PAN card, and the POA – Power of Attorney for NRIs who can’t be physically present in India.
All the payment needs to be made in Indian rupees; foreign currency and traveller’s cheque are not accepted to buy a holiday homes in India. They can rely on their NRE (Non-Residential External) account, FCNR (Foreign Currency Non-Residential) account, or their NRO (Non-Residential Ordinary) account to fund their property purchase. Loans can also be availed by them from banks and housing finance institutions registered with the National Housing Bank as per RBI regulations.
Just like the differences in the documentation for Indian residents and NRIs, there are some differences in the taxation, too. If the property’s value is more than 50 lakhs, 1% income tax will have to pay to the Income Tax Department. In case it has been bought for self-use and has been funded by a home loan, one can deduct the interest amount from the total income tax with a limit of 1.5 lakhs.
With the governmental and taxation changes, buying a property in India for NRIs has become quite convenient and smooth. And the availability of luxury villas in Goa, Nilgiris, and other such stellar locations makes the endeavour even more pleasant. After all, these homes offer more than just interesting investment opportunities!
Picture Courtesy: Business Today and DNA India