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20 Aug 2018

Checklist For NRI Investments In Pune

The recent years have witnessed a major upsurge in NRI investments in Pune’s real estate. Among the sought-after areas in the city, residential projects in Hadapsar Pune have been in great demand. Amanora Adreno Towers with luxury property in Hadapsar Pune for sale is on the investment wish list of many NRIs.

Pune has always been one of the most preferred residential and employment destinations in India. The city makes for a great investment destination because of the many global IT companies and over 210 software companies present here. Pune is also known for its reputed academic institutions, top-notch urban infrastructure and great weather round the year.

If you’re an NRI looking to invest in Pune, here’s a quick checklist for making a lucrative investment.

1.     According to the Foreign Exchange Management Act (FEMA), an NRI or person of Indian origin (PIO) can acquire by way of purchase, any immovable property in India, other than agricultural land/plantation property/farmhouse. As an NRI, you can invest in both residential and commercial properties in India. However, any agricultural land, farmhouse and plantation property can only be owned if it is acquired by way of inheritance or is gifted.

2.     The payment for the property purchase can be made out of funds remitted to India through a regular banking channel or through funds held in NRE/ FCNR (B)/NRO account maintained in India. Payments made outside of India and through foreign currency notes or traveller’s cheques are not allowed.

3.     Both NRIs and PIOs can apply for a home loan in India for up to 80 per cent of the property value, depending on individual eligibility. The loan can be repaid through any of the following channels:

  • Inward remittance through regular banking channels.
  • By debit to self NRE/FCNR (B)/NRO account.
  • By close relatives of the borrower, as defined in Section 6 of the Companies Act, 1956, through their account in India, by crediting the borrower’s loan account.
  • Through rental income earned by the property.

4.     NRIs can make a profit on the investment in terms of rental income, short-term capital gains and long-term capital gains. All of these incomes are taxable. However, the tax slab rate varies and exemptions can be claimed under sections 54, 54F and 54EC. An NRI investor can avail of the same tax benefits on property purchase as a resident Indian. As an NRI, you can claim a tax deduction of Rs. 1 lakh under Section 80C of the Income Tax Act.

5.     For NRIs investing in an under-construction property, the power of attorney may have to be transferred to the developer or a trusted person for smoother and efficient dealings.

The recent implementation of economic and regulatory reforms like GST and RERA have brought about a greater level of transparency and efficiency into the real estate sector, making this the best time for global investors to purchase property in Pune.

Explore luxury property in Hadapsar Pune for sale at Amanora Adreno Towers, a premium residential project in Hadapsar Pune.