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As India’s economy booms and continues to maintain a steady 8 per cent GDP growth, NRI's are looking towards returning to India for investments. But, the NRIs contemplating return to India seek to maintain their ongoing lifestyle; thereby, motivating the property developers in India to come up with innovative residential and commercial projects of international standards.
The developers are keenly focusing to meet this specific aspiration of the NRIs, who want to experience the living standards of Dubai, UAE, yet feel the warmth and hospitality of their motherland. This includes luxury homes and apartments, penthouses, villas and condominiums.
Recent trends have highlighted that NRI investment for residential properties in India either serve as second homes, vacation homes, investment property or as retirement homes. NRIs have also been investing their money in the lucrative commercial real estate market in India as the capital values and rental values for corporate office spaces and retail mall spaces are appreciating high returns.
Benefits for NRI who migrate back to India according to RBI guidelines
may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.
may open, hold and maintain with an authorized dealer in India a Resident Foreign Currency (RFC) Account to transfer balances held in NRE/FCNR(B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment in any form outside India.
Exemptions for NRI :
After returning India for permanent residence NRI An cash following exemption from wealth tax for seven years after return to India.
the money and the value of assets brought by him
Value of the assets acquired by him out of such money within one year immediately preceding the date of his return
Basic exemption of Rs. 15 lakhs is also applicable. |
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Reasons of returning NRI back to India :
Comparisons on lifestyle, food, schools, and hygiene and work culture follow, and a family consensus on “returning to India” is reached. NRI techies find that they can make valuable contributions to the booming IT industry in India and with a good number of “world” schools, plush accommodation, global entertainment and the sprouting shopping malls, India is the place to be.
With multinational companies picking from the cream of attractive resource pool of India and the country offering multiple job avenues to explore, many NRIs have begun to return to India.
Riding the wave of the IT revival in India, giant conglomerates like Wipro, Infosys, and Satyam is earnestly planning to dominate tech hiring wave here thereby trying to give their domestic counterparts a backseat. And, in doing so, they have been succeeded to tempt NRI professionals, who generally fill up for top and middle level positions.
A lot of high value recruitment is likely to take place in coming few years. For NRIs, this clearly underlines the fact regarding advantages of returning back to India outweighing the disadvantages by far.
Companies hiring NRI:
Some of the IT & ITES companies which are actively hiring NRIs returning to India.
Why Investment In India is Profitable?
Supporting the trend is development of Indian economy that is growing nicely at 6 to 7 percent annually. A wise investment in India can easily become your wealth creating tool and get investors a handsome profit margin. For that reason, cross border investors are taking great interest in putting in a modest amount of capital in India with the advantage of repatriation of the funds invested.
The real estate market in Indian giving more return on the investments than the same offered by other developed countries. Simpler process of making investment has upturned the equation; therefore, quite a few NRIs are consistently putting in money in the real estate
A number of NRIs who plan to shift back to India are increasingly investing in real estate. Not only is India making a phenomenal progress in the growth of its IT and ITES sectors but as a result also attracting back the best engineers and professionals from across the world. As a result, the real estate market is thriving in cities that offer excellent job opportunities. There is a lot of speculation about the growing unaffordable prices of the Indian real estate market. But investors should remember that real estate developers are making sincere efforts to make highly affordable real estate options that are equipped with modern amenities and comfortable living that match international standards |
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| What documents are required while buying commercial or residential property? |
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When buying commercial or residential property you would need to check for the following documents: Market Trends about prevalent rates of property in the vicinity and last known transactions. Identify the property you wish to purchase. Formulate commercial terms. Distinguish between terms and conditions of the contract which are negotiable and those which are fixed e.g. price, payment schedule, time of completion etc. Avail the services of Buniyad.com List your requirements with a reputed broker. Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any, on the property must be cleared before completion of purchase of the property. The title of the Vendor to the property must be clear and marketable. Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property. Ascertain outgoings to be paid for the property i.e. property tax, water and electricity charges, society charges, maintenance charges. Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the
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(a) Society
(b) The income tax authority
(c) Municipal Corporation
(d) The competent authority under the Urban Land Ceiling and Regulation Act
(e) Any other authority.
Will you require a loan for making payment of the consideration amount. Ask for a pre-approval letter from the lending institution. Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration. After payment of the entire sale price, take over legal possession of the property along with documents of title in original from the Vendor of the property. Change name of the holder of the property to the purchaser in the records of the society, electricity company, municipal corporation, Index II etc. |
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| What is Stamp Duty and who is liable to pay the Stamp Duty, the buyer or the seller? |
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Stamp Duty is a tax, similar to sales tax and income tax collected by the government, and must be paid in full and on time. A stamp duty paid instrument/document is considered a proper and legal instrument/document. The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30 of Bombay Stamp Act, 1958 states the liability for payment of stamp duty. |
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What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement? |
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Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value, whichever is higher. |
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| Are there any formalities to be completed or forms to be filled on execution of the Sales Deed or document of transfer? |
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Yes. The formalities and forms may vary from State to State depending on where the property is situated. Every State has its set forms under the Registration Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed. Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now compulsory for the Purchaser and Seller to give their Permanent Account Number and in the event of either the Seller and/ or the Purchaser would be required to fill Form 60 of the Income-Tax Rules. In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed to tax in India, such a Party would be required to file Form 60 of the Income-Tax Rules. |
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| What are the permission and papers that one should check with the builder when buying a flat in a building which is under construction? |
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When you are buying a flat from a builder in a building under construction, you have to check the following things: Approved plan of the building along with the number of floors. Whether the floor that you are buying is approved. Whether the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check the title of the land ownership with the help of an advocate. The building byelaws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc. Check if the specifications given in the agreement to sell of the sale brochure match on the ground or not? Whether urban land ceiling NOC (if applicable) has been obtained or not. NOC from water, electricity and lift authorities has been obtained. |
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| Who is the appropriate authority for knowing the market value of the property? |
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The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property. |
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| Within what time period should an agreement/deed have to be registered? |
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The property agreement should be registered with the Sub-registrar of assurances under the provisions of the Indian Registration Act within four months of the date of its execution. |
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| What constitutes completion of the sale? |
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The transfer of a flat is concluded when you have an sale deed/ agreement for sale coupled with actual possession. Generally, in all cases the entire amount is paid simultaneously with the handing over of physical possession and signing of the transfer documents. |
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| What is meant by leasehold and freehold properties? |
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Leasehold properties (plot/built-up) are those in which perpetual leasehold has been granted by the title paramount in favour of the lessee. In such properties, the title paramount, i.e. President of India acts through DDA, L&DO, Leasehold properties are not freely transferable. Depending upon the covenants of the lease deed, prior permission of the lessor (DDA/ L & DO) is required to transfer the property. Freehold properties are those where title paramount has conveyed the property in favour of the purchaser by conveyance/sale deed with no restriction on the right of the holder of the property to further transfer the property. Record of ownership of the freehold property can be ascertained from the office of the sub-registrar. It can be transferred by registration of sale deed. |
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| What formalities need to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission? |
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They are required to file a declaration in for IPI and with the central office of Reserve Bank at Mumbai within 90 days from the date of purchase of immovable property or final payment of purchase consideration, along with a certified copy of the document evidencing the transaction and the bank certificate regarding the consideration paid. |
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