Advance Ruling is one of the "Brahamastra" to avoid any future taxation issues. Not many NRI's or Resident Indian's are aware of the same. Advance Ruling is more popular among the corporates, in the case of disputes between 2 parties or high-value transactions. Alternatively, it can help to plan income tax liability in advance and avoid any future shocks on tax liability. In layman terms, if a resident Indian has any doubt or issue related to taxation in respect of a transaction with NRI that is already undertaken or proposed i.e. Scenario A. Alternatively, if the transaction is proposed or ... Read More
NRI Property Investment – 11 Important Guidelines to Follow
NRI Property Investment is the most discussed but least understood topic. The reason being, it is perceived to be too complex. The rules and regulations governing NRI Property Investment are different. In this post, a reference to NRI includes PIO (Person of Indian Origin) and OCI (Overseas Citizenship of India) until unless specified. Till date, i have observed two key reasons for NRI Property Investment. The primary reason is NRI's would like to settle in India after retirement. Secondly, they still feel safe and secure to invest their hard earned money in India compared to the country of ... Read More
Long Term Capital Gain from Property – 11 Least Known Facts
I receive a lot of queries on Long Term Capital Gain. Each case is different from another. In my post, capital gain tax, i discussed long term capital gain in detail. It is a vast subject and not possible to cover in the single post. The rules related to long term capital gain from house property are different. There are a lot of myths and misconceptions about long term capital gain from house property. The objective of this post is to clarify the doubts of the readers. Secondly, a lot of readers share references of the decision of courts and income tax tribunals. These decisions are ... Read More
NRI Property – 7 Mistakes to Avoid by a Resident Indian Buyer
Are you planning to buy an NRI property? & if you are a resident Indian buyer then you should go through this post :). Usually buyers don't prefer to buy NRI Property. The reason being rules and regulations are bit complex in nature. Another reason is that the onus of compliance rests on buyers shoulder. It is little unfair as buyers cannot buy NRI Property without professional help. The biggest hassle is of TDS deduction and filing of TDS return. A buyer also needs TAN for TDS deduction. I discussed the same in my post, How to deduct TDS u/s 195?. I do agree that rules should be ... Read More
Imp points on Power of Attorney by NRI
A property transaction through Power of Attorney executed by NRI calls for extra checks/scrutiny. A sale deed can be declared NULL and VOID because of a small mistake or error in the execution of Power of Attorney by NRI. Sometimes these errors/mistakes are intentional and most of the times unintentional. In recent past, i came across multiple cases wherein a property transaction was challenged based on error/mistake in the execution of Power of Attorney (POA) by NRI. In many cases, the status of NRI is being concealed by his lawyer/CA in POA to avoid TDS. An NRI executing POA in India cannot ... Read More
5 Questions a Buyer Must Ask a Seller
As we know that while buying a property entire risk rests with the buyer. It is imperative for buyer to ask a seller few imp points. In this post we will discuss 5 such questions which a Buyer Must Ask a Seller before buying a property. In India, most of the property deals are closed through Real Estate Agents or Brokers. Normally Brokers don't allow buyer and a seller to discuss the nitty gritty of the deal. All the communication is through Real Estate Agent which might create confusion at later stage. I have observed that Real Estate Agents usually favor the seller therefore the interests of ... Read More