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!
Documentation
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.
Financing
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.
Taxation
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!
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