NRI tax rate and TDS deduction on sale of property
NRIs are taxed at the same rate as non NRIs. If property is owned for more than two years, then they fall under the 20% tax slab. If it’s a short term sale (owned for less than 2 years) then NRIs are taxed at the applicable tax rate based on total income taxable in India.
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NRIs can remit upto $1 million on sale of property
After a sale of property and payment of appropriate taxes either through TDS during sale or advance payment of taxes, NRIs can remit up to $1 million USD. NRIs have to produce documentary evidence of sale (sale deed, registration fees receipts, tax payment evidence) along with a certificate from an auditor to remit the amount back to their country of residence.
Read moreNRIs and Taxes
NRIs, your rental income for properties in India is subject to tax in India. While filing taxes you can take a standard 30% deduction on annual value of property, which includes the cost of maintaining the house. Other deductions are home loan interest paid, property and water taxes. Regarding filing of taxes, you don’t need to file until your income exceeds 2 lakhs annually. Your interest from NRE account, dividend income and interest income from PPF is TAX EXEMPT.
Read moreLandlords, your PAN number is required
Whether you are an NRI or not, your PAN needs to be furnished if you fit the following criteria…
1. If your tenant is using HRA (House Rent Allowance) from his company AND
2. If your rent is more than 1 lakh per year
When a tenant claiming HRA rents a house, their company furnishes a form which asks for landlord’s name, contact, PAN number and other pertinent details.
New home inspections – identifying snags and rectifying them
With too many constructions going on, several builders are in a hurry to hand them over to owners. Many of these hand overs is in an incomplete state and/or poor quality and builders expect owners to identify snags (issues) to be addressed. This is actually the last chance for owners to identify these issues and report, so it can be rectified before making final payment.
When a tenant claiming HRA rents a house, their company furnishes a form which asks for landlord’s name, contact, PAN number and other pertinent details.
Vandalur to get new bus terminus
Koyambedu bus terminus is getting too congested… more buses than what can be parked and general traffic congestion is causing a lot of traffic woes. CMDA’s announcement of a new and larger bus terminus at Vandalur is great news. A bit late, but better late than never. It sticks to our tradition of waiting till a problem happens and then solving it. Just as how we build flyovers at traffic junctions way after they become highly congested. In any case, this is a much needed progress.
Rest is the regular sales process of hiring an agent and finding buyers.