Q:
I am NRI from Sydney, Australia. I am planning to purchase first investment property in India. My investment strategy is to leverage high captial growth in India and bring money can to Australia and invest it on high yield (rental income) property here with minimum aussie loan.
My questions are
1. Best way to buy construction property keeping stamp duty/other expenses as low as possible? Thru NRE or NRO account or on relatives name?
2. Best way to repatriate money back to Australia keeping tax as low as possible? Thru NRE or NRO account or relative gifting property to me and I sell that property and deposit sell money in NRE account ?
Manish
Q:
I am NRI from Sydney, Australia. I am planning to purchase first investment property in India. My investment strategy is to leverage high captial growth in India and bring money can to Australia and invest it on high yield (rental income) property here with minimum aussie loan.
My questions are
1. Best way to buy construction property keeping stamp duty/other expenses as low as possible? Thru NRE or NRO account or on relatives name?
2. Best way to repatriate money back to Australia keeping tax as low as possible? Thru NRE or NRO account or relative gifting property to me and I sell that property and deposit sell money in NRE account ?
Thanks for your reply. 1) Is the restriction of 2 residential property per individual for per household. I have a spouse and a baby. Can they also own 2 residential property and sell it to send profit back to overseas? 2)Is it better to buy property from NRE or NRO account or parent’s name (who can lateron gift)? . If buying on parents name , Is there a limit on the gift amount per year where gift amount is income from rent or sales proceed. Tax on this gift? 3) since there is no limitations in repatriating sales proceed of commercial property, is it possible to re-invest sales proceed of more than 2 residential properties into a expensive commercial property and then repatriate the sales proceed from commercial property?Thanks for your reply. 1) Is the restriction of 2 residential property per individual for per household. I have a spouse and a baby. Can they also own 2 residential property and sell it to send profit back to overseas? 2)Is it better to buy property from NRE or NRO account or parent’s name (who can lateron gift)? . If buying on parents name , Is there a limit on the gift amount per year where gift amount is income from rent or sales proceed. Tax on this gift? 3) since there is no limitations in repatriating sales proceed of commercial property, is it possible to re-invest sales proceed of more than 2 residential properties into a expensive commercial property and then repatriate the sales proceed from commercial property?
My comments to replies
Thanks for your reply. 1) Is the restriction of 2 residential property per individual for per household. I have a spouse and a baby. Can they also own 2 residential property and sell it to send profit back to overseas? 2)Is it better to buy property from NRE or NRO account or parent’s name (who can lateron gift)? . If buying on parents name , Is there a limit on the gift amount per year where gift amount is income from rent or sales proceed. Tax on this gift? 3) since there is no limitations in repatriating sales proceed of commercial property, is it possible to re-invest sales proceed of more than 2 residential properties into a expensive commercial property and then repatriate the sales proceed from commercial property?
Also let me know if you can recommend any good NRI tax accountant in Delhi region
15th January 2013
Hi Lokesh..let me correct you..If the property was acquired out of Rupee sources, NRI may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account. It also includes sale proceeds of assets acquired by way of inheritance or settlement.
To avoid all these issues, is it not Bette to just send money to parents account in regularly in small amount and purchase. Contruction linked plan. Lateron, when they sell off property,they can send all sales proceed to us as a gift. I think outward remitance limit is 1 mil USD as well. Your thoughts?
21st January 2013
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