The present blast in the Indian real estate industry has provoked NRIs (Non Resident Indians) to offer their properties in Punjab to take advantage of the hike in land prices. However, NRIs must observe the extraordinary provisions of the Indian tax laws before offering their property in Punjab so as to guarantee a smooth exchange and avail extreme benefits.
It is crystal clear that a NRI can only sell residential or commercial property in Punjab to a person already living in Punjab or to an NRI or a PIO (Person of Indian Origin). Under general permission, an NRI can easily sell his agricultural land/plantation heritage/farm house in Punjab only to a person who is a resident of Punjab or India and is a citizen of India. NRI have the full authority to transfer his/her residential or commercial property to a reliable dealer or housing finance institution in India through mortgage.
Major Tax liabilities: Like in the case of buying, sale of the property also attracts tax liabilities. For all the NRIs, tax implications are as per the Foreign Exchange Management Act (FEMA) 1999, for which factors that need to be focused are, transfer (sale) date for determining capital gains; agreement value for calculating all the profits and thereby capital gains; transfer all type of charges to the society; legal charges and outstanding loans, if there is any.
If the NRI sells his/her house within the duration of 3 years from the date of purchase and makes a huge profit, then he/she is liable to pay short-term capital gains tax at the very normal rate applicable as per the tax bracket. But if the sale happens after three years from the date of purchase, then NRI has to pay full capital gains tax at a flat rate of 20%.
After the full sale of property, the NRI may repatriate the sale proceeds of residential or commercial property in the whole Punjab but must remember that the repatriation of sales is limited to two properties only. Also, the repatriated amount should ideally not cross the sum paid for acquiring the whole property, either in foreign exchange received from banks or the Non Resident account, nor should it overshoot the entire foreign currency equivalent as on the day of payment. Today, remittance of funds from property sales is quite simple and hassle-free for the benefit of all the NRIs.
However, it is a must for a NRI to ensure that he is well guided by a reliable expert in matters of property sale in Punjab and must also be aware of fake property dealers. It is best to consult an authorized dealer so that the property and sale is handled in safe and secure manner.
“Presently most of the NRI are in bit confusion about how to sell property in Punjab. Most of the time they are fooled by the fraudsters in property sector. So, Punjabnriproperty.com is the one that helps all those people to choose wisely in investing into some property” stated by one of the official.