Taxation Tips for NRIs Investing in Property in India

2bhk_flatsWith the real estate market booming in India, the trend of investing in property is on the rise among the well-heeled. Among the people investing in Indian real estate every year, a significant portion constitutes of non-resident Indians. Many NRIs buy property in India because they either plan to return to their home country or they plan to sell off the property some years later and make capital gains. But even when buying property from the best builders in Lucknow, non resident Indians often face a lot of hassles in the purchase of the property and while paying taxes. Many NRIs aren’t aware of the taxation system in the country and often land in a soup. The following tax tips are meant to make investing in property easier for NRIs.

  1. While paying taxes on the property, the taxpayer would be eligible for indexation benefits, which means the cost of the house would be multiplied by the cost inflation index of the year of sale and divided by the cost inflation index of the year of purchase. These indices announced by the income tax department every year will result in an increased cost of the house and a lower cost of the house while calculating long term capital gains.
  1. A non resident can claim tax deductions on expenses such as brokerage fees, travel expenses, etc while calculating long term capital gains.
  1. Tax exemptions on long term capital gains can be claimed by reinvesting in another property within two years of the sale of the house or before a year of sale of the old house. The amount of deduction is lower than the cost of the new house and the long term capital gains. If the cost of the house is equal to or more than the long term capital gains then total exemption can be availed. In case the reinvestment cannot be made within the stipulated period then the money should be invested in a capital gains deposit scheme.
  1. Tax exemption can also be availed of by investing in a capital gains tax savings bond within six months from the sale of the house. The maximum amount allowed foe such investment is limited to Rs 50 lakhs. The bonds are for three year periods at a rate of six per cent per annum. Interests are taxable.
  1. Non resident taxpayers may have to pay a TDS of 23 per cent. Taxpayers may make an application to the IT department for lower rate of TDS.
  1. The income tax implications must be checked in the country of residence. Many countries require their residents to pay tax on their worldwide income. In case the person is required to pay income tax in the country of residence, then he/she can receive a credit of income tax paid in India.

The best builders of Lucknow can advise non residents on income tax requirements while investing in a property in India. NRIs should do a thorough research and talk to relevant people before investing in property.

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Ways in Which you Can Spruce Up the Spare Room

Real Estate Companies IndiaResidential apartment houses in Lucknow often come with a spare room that may not be required or is simply lying around unused. it’s time to spruce it up and put it to much better use. Instead of using it for a dumping yard that stores all the things you do not need but cannot throw, or a guest bedroom that is rarely put to use, here are some ideas that can ensure you make the most of this space-

Hobbyists Lounge

Music, Art, even coffee. You can not only put this space to good use but also reignite your passion for a lost hobby. Easels, paints, musical instruments, sheet stands, a coffee machine with a cafe set up; there are endless possibilities to what you can do with the space if you apply your mind to it. If you can manage to install French windows in this room to let more sunlight in, or throw some over sized pillows around you can even turn it into a meditation room.

The Quintessential Gym Room
For the hardcore gym buffs, it can be a great way of indulging in this activity without having to schedule and plan a visit to the gym every day. A gym room can also motivate the more inactive people at home to follow in your footsteps and make a healthy change. With some durable flooring and the required equipment, you can set the room up in no time.

A Theatre Room
Install a big flat screen TV and some speakers to turn this room into your very own theatre. A pull out couch can ensure you can accommodate your guests as well when required. You can go the full mile by adding rugs and soundproofing your window as well as investing in a popcorn machine to create the atmosphere. Hosting movie nights or cheering on your favourite team will be like never before.

A ‘Dapper’ Study or Library
The traditional home offices of western countries, adding a study to your home can be extremely beneficial. Not only can you work out of the room with peace but if you have a passion for books, you can also have a shelf running across your walls and turn it into a library. Mahogany wood desks and a roll out bar would be an essential, but the sky is the limit when it comes to designing this room.

A Private Bar
For connoisseurs of alcohol, a bar room can be a great addition to the house. Apart from the necessary glass sets and bottles, you can add a small fridge, a wine cellar or even a table set with high stools. Add some mood lighting and hues of the gemstones to build the perfect atmosphere. It can also be a great room to host guests in.

Your Residential apartment house in Lucknow can be one of a kind with such stellar additions. Add a pull out couch, all of these rooms can be used to accommodate visitors and guests who may come for a short time. This can ensure you put this space to the best uses instead of simply lying around as a spare room.

Dream Homes on a Budget: Investing in the Future of Lucknow’s Real Estate

affordable property in LucknowBalancing a life of style and luxury can be difficult even in today’s times where we have a higher disposable income. Although we find that our spending powers have increased, so have our basic needs and demands. One of the most capital intensive factors that need to be addressed is the house property. Considering the life time that will be spent here, it is important to make the right decision the first time around. NRI real estate investments in Lucknow along with a surge of residential projects being developed make it a hotspot among tier- II cities.

Quintessential Lucknow Projects

Lucknow is best known for projects that have a quaint charm to it as well as are equipped with modern amenities and facilities. Their rich traditions and heritage can be found in all things even today. With some of the best educational institutes and medical care facilities opening shop here, along with the stellar malls, the city leaves a little to desire. It is no doubt that Lucknow has managed to put itself on the map of the real estate markets of India as a distinguished competitor, leading to a number of people from surrounding towns investing in residential properties in the city as well.

Investing in the Future

The best part about Lucknow is that surviving in the city of Nawabs on a budget does not mean you need to compromise on the luxuries of life. Here are some of the real estate corridors in the city that will let you indulge in the luxurious life without emptying the bank account out-

The Gomti Nagar Phase I, II and Extension

The area of Gomti Nagar is the fastest growing real estate corridor in the city. With its diverse residential projects, commercial properties and belts of retail properties, along with the close proximity to the Central Business District it is meant to be the hub of all activities. What helped it develop faster was that the numerous operating malls and such facilities made it easier for potential investors to envision their lives here as well. With prestigious organisations setting up a branch of office here as well as the development of support facilities such as medical care and educational institutes, the area has been a booming corridor for growth.

The Lucknow – Kanpur Road

Connecting the two cities together, this road has a number of upcoming residential projects surrounding it. Besides the access provided to some of the best road systems, bridges and highways, investment opportunities aren’t as capital intensive as elsewhere either. With potential plans to develop the IT sector, it is definitely the next big development belt of Lucknow.

Rai Bareli Road and Sultanpur Road

The two micro markets in Lucknow are growing at a rapid speed. The renowned Shaheed Path connects the two areas to the rest of the city. Residential developers have seen a large amount of NRI real estate investment in Lucknow being utilised here. With some of the lowest per square foot prices set along with access to finest projects, it is a popular area to consider buying a home in.

The region of Lucknow has seen exponential growth and a large inflow of investments in recent years making it a buyer’s market and hence a good city to purchase a home in.