3. Tax implications for NRIs:

While purchasing property in India, an NRIs must pay registration fees and other charges. He will get all the benefits that are equal to Indian residents on the interest paid towards the home loan.

If your property is leased, the income that the NRI receives will come under income from property and there will be some percentage of deductions that will be applicable accordingly. The person will have to pay the tax that is levied on him if he is residing in the country where worldwide income is taxable unless the country has Double Tax Avoidance Agreement with India.

NRIs have one big advantage, where the interest that he/she pays towards the home loan or property loan will be considered as deductibles from paying tax.

If in case the NRI prefers to sell his property will become legally responsible for paying capital gains tax as  prescribed under the Income Tax Act.

Also Read:

5 Reasons Why You Should Not Buy Diamonds

Incorrect Tax Withholding Most Frequent Payroll Error: E&Y