#tds on selling property in india for nri

[pkpconsult1]

When an NRI sells property in India, the buyer is required to deduct TDS at a rate of 20% + Surcharge on the gross amount of sale consideration of the property being sold if it is held by the NRI  for more than 2 years before selling the same or at the rate of 30% + Surcharge if it is held for less than 2 years.

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Apply for new pan card in New York

A Permanent Account Number (PAN) card is an essential document for various financial transactions and is required for all Indian citizens and entities conducting business in India. If you’re an Indian residing in New York or an Indian-origin individual needing a PAN card, the process to apply for one has been streamlined and can be completed from abroad. Here’s a comprehensive guide on how to apply for a new PAN card in New York.

What is a PAN Card?

A PAN card is a unique 10-character alphanumeric identifier issued to all tax-paying entities in India. These entities include individuals, companies, partnerships, trusts, and foreign nationals conducting business in India. The PAN is unique to each entity and is valid for a lifetime, regardless of any changes in address or employment.

Importance of a PAN Card

Tax Identification and Compliance:

Income Tax Returns: PAN is essential for filing income tax returns. It ensures that the tax-related activities of individuals and entities are tracked.

TDS/TCS: It helps in the tracking of tax deducted at source (TDS) and tax collected at source (TCS).

2. Financial Transactions:

Banking: Required for opening bank accounts, applying for loans, and conducting transactions above a certain limit.

Investments: Necessary for investments in securities, mutual funds, and fixed deposits exceeding a specified amount.

Property: Essential for purchasing or selling immovable property above a certain value.

3. Identity Proof:

PAN card is widely accepted as valid proof of identity across various sectors, including financial institutions, government services, and private organizations.

4. Prevention of Tax Evasion:

The PAN system links all financial transactions of an individual or entity, thereby reducing the chances of tax evasion and ensuring transparency.

Features of a PAN Card

If you want to apply for new pan card so you can contact us +1 (416) 996–1341 or pancardservice253@gmail.com for apply new pan card in new york.

Unique Identification Number:

Each PAN card has a unique 10-character alphanumeric code that follows a specific format, ensuring no two PAN cards are identical.

2. Validity:

The PAN card remains valid for a lifetime. It is not affected by changes in personal information such as address or employment status.

3. Universal Acceptance:

Recognized across India as a valid proof of identity and essential for various financial and legal transactions.

4. Structure of PAN:

The PAN number consists of 10 characters, where the first five characters are letters, followed by four numerals, and the last character is a letter. For example, ABCDE1234F.

The fourth character signifies the type of PAN holder (individual, company, trust, etc.).

5. Details on the Card:

The PAN card contains the cardholder’s name, father’s name, date of birth, signature, and a photograph. For non-individual entities, it includes the entity’s name and date of incorporation.

Applying for a New PAN Card

Who Can Apply?

Individuals: Indian citizens, NRIs, PIOs, and OCIs.

Entities: Companies, firms, HUFs, trusts, and foreign nationals/entities conducting business in India.

Conclusion

Apply for a new PAN card in New York is a straightforward process if you follow the correct steps and provide the necessary documentation. Whether you’re an NRI or an individual of Indian origin, having a PAN card is crucial for managing your financial affairs in India. By following this guide, you can ensure a hassle-free application experience and receive your PAN card without any complications.

Contact Us- Phone- +1 (416) 996–1341 Email Us- pancardservice253@gmail.com

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TDS Contemplations In Property Sold By NRI

With regards to trading property, tax collection contemplations assume a basic part. Both the purchaser and merchant face charge suggestions which should be stuck to according to the Annual Expense Act, 1961. On account of homegrown exchanges, these cycles are very direct. In any case, for a NRI selling a 2 BHK property in Thane, charge suggestions are unique, for the merchant as well as the purchaser too.

In this article, we investigate the TDS derivations on account of an Indian property sold by a NRI.

TDS (Duty Deducted at Source)

TDS is an expense gathering instrument by the Indian government to gather charges at the kind of revenue. With regards to property deals, TDS is deducted by the purchaser prior to making installment to the NRI dealer. It is relevant for both private and business properties.

Capital Increases Assessment for NRIs

An essential tax collection for NRIs selling property in India is the Capital Increases Duty. This can be long or short in view of the span of the property held. In the event that the property has been under the ownership of the merchant for quite some time or more, they will be charged long haul Capital Additions Expense at 20%, while under 2 years will be accused of momentary Capital Additions Duty according to the assessment section.

TDS Methodology

The course of TDS allowance in property deals including NRIs includes a few key stages:

Getting TAN: While buying a property from a NRI, the purchaser should get a TAN number to deduct TDS. In the event that there are numerous purchasers, every purchaser needs to apply for a TAN number. This necessity is just for the purchaser and not the merchant.

Recording Structures 15CA and 15CB: Prior to dispatching the deal continues abroad, the NRI merchant should acquire Structure 15CA from the Annual Assessment Office's internet based gateway. Moreover, they need to get Structure 15CB, a declaration from a Sanctioned Bookkeeper, affirming the material duty rate and consistence with Indian expense regulations.

TDS Derivation and Installment: The purchaser is answerable for deducting TDS at the hour of making installment to the NRI dealer. The deducted sum should be kept with the public authority inside the permitted time period.

Charge Exclusions on TDS for NRIs

NRIs can profit exceptions and help under specific arrangements of the Annual Duty Act to decrease their assessment obligation:

Segment 54: Exclusion on long haul capital additions in the event that the returns are reinvested in another private property like a 2 BHK property in Thane inside the predefined period.

Segment 54EC: Exclusion on long haul capital additions assuming that the returns are put resources into indicated bonds in somewhere around a half year of the property deal.

Segment 54F: Exception on long haul capital additions on the off chance that the returns are put resources into a private property like luxury homes in Thane other than the one sold.

End

TDS in the offer of property by a NRI requires cautious thought from both the purchaser and the vender. Complying with all guidelines is basic to keep away from any legitimate problem later on. Counseling a duty expert can assist with guaranteeing you get greatest exclusions while remaining consistent at each step of the deal.

[shiv100]

TDS (Tax Deducted at Source)

TDS (Tax Deducted at Source): What is it?

TDS (Tax Deducted at Source) is the term used to describe when income tax is subtracted from payments that are specifically covered by the income tax, such as rent, professional fees, commission, salary, interest, etc. When receiving income, an individual is required to pay income tax. According to a government provision, income tax will be withheld from your payments ahead of time. “tds on sale of property” Your take-home pay is the net amount remaining after source-reduced taxes.

TDS on property sold in accordance with section 194-IA

Only properties valued at more than Rs 50 lakhs are subject to TDS when they are sold. A buyer must legally pay 1% of the transaction cost as TDS on the sale, according to Section 194-IA (Income Tax Act). 

The buyer must subtract 1% TDS from the value at stamp paper or the actual price, whichever is higher, in accordance with the new budget 2022 rule.

On real estate sales, who deducts TDS?

Any time an immovable property is purchased, the buyer is required to deduct the TDS. It's a tax taken out of the original system to stop unethical behavior. When buying property of a certain type, the buyer is required to deduct 1% TDS from the total amount paid and deposit the remaining funds into the Indian government's account. Form 26AS or a TDS certificate from the buyer may be used to credit the seller for the amount deducted. “tds on purchase of property”

Should any of the parties to the agreement neglect to fulfill their obligations, there will be a penalty.

TDS on real estate sales in 2023

kinds of properties covered by TDS

private land

Business Real Estate

Land Note: The TDS Act does not apply to agricultural land.

How is the TDS deducted and paid for?

A buyer is required to finish the process of remitting TDS into the Government of India's account within the first thirty days following the end of the month of the conveyance deed. In order to pay TDS, a Form-cum-challan no. 26QB is needed. If there are multiple buyers or sellers for the property, each must complete a separate Form 26QB with all the necessary information.

TDS on an NRI's property sale

For long-term capital gains—property bought and sold after two years—the TDS rate is 20%. The TDS rate would fall below the NRI tax bracket for short-term capital gains, which are defined as property sales that occur within two years of purchase.

TDS on joint owners' property sales

TDS would not be applicable if a buyer's share of the property is less than Rs. 50 lakh and there are joint buyers, per section 194 1A and the Delhi Bench income tax tribunal's decision. 

How can I get my TDS back when I sell my property?

After TDS is deducted and paid along with the income, a buyer gives Form 16B to the seller of the real estate. 

Extensive data needed to cover TDS

Information about the seller and buyer needed to pay TDS

Information required for Form 26QB filing includes 

Name, address, PAN, phone number, email address, and full property address

Date of the agreement Total amount of money paid

Date of payment; no TDS deduction

On immovable property, there is no such TDS provision.

When is the TDS expected to be deposited?

For instance, a TDS that was withheld in March needs to be transferred to the Indian government's account by April 7. This implies that TDS must be deposited by the seventh of the following month after a buyer deducts the tax.

Consequences of not paying TDS

Penalty for failing to pay TDS within the legally stipulated timeframe: the buyer faces fines in the form of interest or a hard seven-year jail sentence. “tds on purchase of property section”

How can I obtain Form 16 by paying TDS using Challan 26QB?

Complete Form 26QB with all necessary information, including the buyer's and seller's PAN and property details.

Maximum paid/credited amount and tax information

Seller and buyer's contact information

Buyers should keep in mind the seller's residential status factors.

Don't enter a PAN number or any other incorrect information.

Check PAN Specifics

The Income Tax Department would be involved in any correction. Things the Seller should keep in mind

Verification of Deposit for your Annual Tax Statement on Form 26AS.

[vrassociateslawfirm]

Real Estate Investments by NRIs in India : An Overview

Buying or selling property in India as a Non-Resident Indian (NRI) can be a complex process, laden with legal and financial intricacies. Understanding the nuances of these transactions is crucial, especially when it involves dealing with properties by NRIs. This is where the expertise of the best RERA lawyers in Gurgaon and real estate lawyers in Delhi becomes invaluable.

Understanding the Legal Framework

The Foreign Exchange Management Act (FEMA) governs NRIs' real estate transactions in India. Under FEMA, there are clear guidelines on the types of properties NRIs can purchase and the payment methods they can use. Notably, while NRIs can acquire residential and commercial properties, they are prohibited from buying agricultural land, farmhouses, or plantation property.

Payment Methods for NRIs

For property purchases, NRIs must use banking channels for payments, either through remittances from abroad or from their NRE/NRO or FCNR accounts. Furthermore, financing options include Indian rupee home loans from Indian employers, housing finance companies, or banks.

Selling Property in India as an NRI

NRIs are allowed to sell properties in India with some restrictions. Residential properties can be sold to Indian residents or other NRIs. However, selling agricultural land is more restrictive and can only be done in favor of Indian citizens.

Tax Implications

When an NRI buys or sells property in India, there are significant tax implications. The buyer must deduct TDS (Tax Deducted at Source) at rates dependent on the property and seller's status. Understanding these tax obligations is crucial for a smooth transaction.

The Role of RERA Lawyers

Engaging a RERA lawyer in Gurgaon or a real estate lawyer in Delhi can significantly ease the burden of these transactions. These professionals can guide NRIs through the maze of legal requirements, ensuring compliance with Indian laws and regulations.

Documents and Compliance

A range of documents, including title documents, NOCs, and identification proofs, are required for these transactions. Legal experts can assist in gathering and verifying these documents, ensuring that the sale or purchase is legally sound.

The involvement of NRIs in Indian real estate requires careful legal and financial planning. With the expertise of VR Associates Law Firm, the best RERA lawyers in Gurgaon and real estate lawyers in Delhi, NRIs can navigate these complex transactions with greater confidence and legal security.

[propertythn]

Investing in Under Construction Projects in Thane: A Guide for NRIs

Investing in under construction projects in Thane, India, can be a lucrative opportunity for NRIs (Non-Residential Indians) looking for both a property investment and a connection to their motherland. This comprehensive guide aims to provide NRIs with a detailed overview of the benefits, considerations, and steps involved in purchasing under construction projects in Thane. From property types and taxation to power of attorney, finance and funding, and registration documents, this guide covers essential information to help NRIs make informed investment decisions.

Benefits of Investing in Under Construction Projects in Thane

Investing in under construction projects in Thane offers several advantages for NRIs:

1. Regular Rental Income:

Real estate valuers employ two primary methods to determine the market value of a property: the sales comparison method and the cost approach.

2. Favorable Investment Policies:

The Indian government considers NRI investments equivalent to those made by residents, offering a level playing field for NRIs.

3. Limited NRI-Focused Projects:

As only a few developers cater specifically to NRIs, investing in under construction projects in Thane can provide unique investment opportunities.

4. Growing Demand for Office Spaces:

The increasing demand for office spaces by multinational corporations and startups in Thane presents a high-return investment opportunity.

5. Favorable Exchange Rates:

The falling value of the Indian rupee and recent policy reforms have made it an opportune time for foreign investors to gain high returns on their investments.

6.Emotional Attachment:

Many NRIs, driven by nostalgia and the desire to return to their home country or support their relatives, choose to invest in India.

Detailed Guide for NRIs Investing in Under Construction Projects in Thane

1. Property Type :

NRIs can purchase residential and commercial properties in India but are restricted from buying agricultural land, farmhouses, or plantation estates without authorization from the Reserve Bank of India. It is essential to have a legal power of attorney if an NRI cannot visit India to make the purchase personally.

2. Taxation and Benefits:

When an NRI acquires a property in India, taxes are deducted at source (TDS) at specific rates on both long-term and short-term capital gains. NRIs can claim a refund on TDS if they fall into a lower tax bracket by filing their income tax returns. NRIs are entitled to several tax breaks similar to those available to Indian residents. Selling a property within three years is considered short-term capital gains and is taxable. However, selling after three years allows NRIs to utilize the proceeds to reduce long-term capital gains tax by investing in another under construction property in Thane.

3. Power of Attorney (PoA) :

NRIs are required to grant a power of attorney to the builder or an associate to handle the property acquisition process. Seeking legal assistance can help prevent fraudulent activities and safeguard the NRI's investment during the development phase. NRIs living abroad can grant power of attorney to trusted friends or family members to complete the property acquisition process in India.

4. Finance and Funding :

NRIs must use Indian currency and local banks to finance their property purchases in India. They need to have an NRI account with an authorized Indian bank. Financial institutions offer NRI home loan plans, requiring NRIs to invest a minimum of 20% of the property's value and allowing them to borrow up to 80%. It is crucial to have all documentation reviewed by a legal professional before approaching a bank for funds. A certificate from the seller confirming the absence of liens and clearing of joint ownership or inheritance issues is necessary. NRIs should ensure that no outstanding debts or dues are owed to any authorities.

5. Registration Documents :

To register the sale deed, NRIs need to provide identification proof documents such as their passport and PAN card, along with current address proof documents like utility bills. Additionally, NRIs, PIOs (Person of Indian Origin), or OCIs (Overseas Citizen of India) require specific documents such as a copy of their passport, visa, passport-size photographs, PAN card, and address proof. Salaried individuals need to submit additional documents like appointment letters and bank statements for the preceding six months, while self-employed individuals require income proof, business incorporation documents, partnership deeds (if applicable), and bank statements.

Conclusion

Investing in under construction projects in Thane offers NRIs an excellent opportunity to connect with their homeland while also enjoying potential high returns on their investments. By considering property types, taxation and benefits, power of attorney, finance and funding, and registration documents, NRIs can navigate the process smoothly and make informed decisions. It is crucial to engage trusted legal professionals, deal only with RERA-registered projects and real estate brokers, and conduct thorough research before making any investment decisions. By following this comprehensive guide, NRIs can maximize their investment potential and fulfill their aspirations of owning property in Thane, India.

Get To Know About: Real Estate Appraisal: Understanding Its Significance

[squarefeetgroup]

Underconstruction Residential projects in Ghodbunder Road Thane-A Comprehensive Guide for NRIs Interested in Investing in Under Construction Projects in Thane

Introduction:

The love for one's motherland is a sentiment deeply ingrained in the hearts of NRIs (Non-Residential Indians). Although many NRIs sell their personal and ancestral properties to settle abroad, their attachment to their homeland often grows over time. This nostalgia and emotional connection drive them to consider investing in a property in India, which they can use as a home during their visits. Additionally, NRIs are also keen on exploring investment opportunities that offer high returns. However, choosing the right property and managing it remotely can be challenging, which is why the services of a Property Management Consultant may be required.

Moreover, NRIs may also consider purchasing a 2 BHK flat in Thane for their family members or parents residing in India. This not only provides a comfortable place for their loved ones to stay but also serves as accommodation for the NRIs when they visit. It's important to note that NRIs do not require permission to buy land in India, but there are restrictions on purchasing agricultural plots, farms, or plantations. In this guide, we will explore the benefits of investing in under construction projects in Thane and provide a checklist of considerations for NRIs planning to make such investments.

Benefits of Investing in Under Construction Projects in Thane:

Regular Rental Income:

Investing in under construction projects in Thane offers the potential for regular rental income. With the rising demand for housing in Thane due to its proximity to business centers and improving infrastructure, NRIs can benefit from a steady flow of rental returns.

Equal Treatment by the Government:

The Indian government recognizes NRI/OCI/PIO investments on par with those of residents. This provides NRIs with a level playing field when it comes to property ownership and associated rights.

Limited Availability of NRI-Focused Projects:

Only a few developers cater specifically to NRIs, offering projects tailored to their requirements. These projects often come with additional benefits and services to attract NRI investors.

High-Return Investment Opportunity:

Thane is experiencing an increased demand for office spaces from multinational corporations and startups. This creates a lucrative investment opportunity for NRIs looking for high returns. The recent policy reforms and economic growth in India, coupled with the depreciation of the Indian rupee, further enhance the potential returns on investments for foreign investors.

Emotional Connection and Future Plans:

Many NRIs, driven by an emotional connection to their homeland or the desire to return in the future, choose to invest in India. Investing in under construction projects in Thane allows them to fulfill this emotional quotient while also benefiting their relatives or future plans of returning to India.

Considerations Before Buying Under Construction Projects in Thane:

Property Type:

NRIs are allowed to purchase both residential and commercial properties in India, except for agricultural land, farmhouses, or plantation estates. If an NRI wishes to buy agricultural land, authorization from the Reserve Bank of India is required. Additionally, NRIs can purchase multiple properties in India without any restrictions. In case an NRI is unable to travel to India for the property purchase, they can appoint a legal power of attorney to act on their behalf.

Taxation and Benefits:

When an NRI acquires a property in India, tax deducted at source (TDS) is calculated at rates of 20.6% for long-term capital gains and 30.95% for short-term capital gains. However, the final taxation rate for NRIs is the same as that for resident Indians. If an NRI falls into a lower tax bracket, they can claim a TDS refund by filing their income tax return.

NRIs are eligible for many tax breaks available to Indian buyers. If they sell the property within three years, the proceeds will be taxed as short-term capital gains. However, if they sell the property after three years, they can reinvest the money in another under construction property in Thane to reduce the long-term capital gains tax liability.

Power of Attorney (PoA):

It is recommended for NRIs to grant a power of attorney in the name of the builder or a trusted associate when purchasing under construction projects in Thane. This helps safeguard their investment during the development phase. Seeking assistance from a lawyer in this matter ensures the validity and authenticity of the power of attorney document.

As NRIs reside abroad, they have the option of granting a power of attorney to their friends or family members to complete the property acquisition process in India. The powers granted can be general or specific, depending on the rights and responsibilities the NRI wishes to delegate.

Finance and Funding:

When purchasing new projects in Thane, NRIs must use Indian currency and transact through local banks. NRIs planning to buy property in India must have an NRI account with an authorized Indian bank.

Documentation and eligibility requirements vary for NRIs seeking property loans. Financial institutions offer NRI home loan plans, but NRIs are typically required to invest at least 20% of the property's value from their own funds. The remaining 80% can be borrowed from the bank.

As all transactions must be conducted through Indian banks, NRIs must use their NRO/NRE accounts for remittances. They can provide post-dated cheques or use Electronic Clearance Service (ECS) from their NRO, NRE, or FCNR accounts.

Before approaching a bank for funding, NRIs should ensure that their documentation is in order and seek professional legal advice. They should obtain a certificate from the seller confirming that the property is free from liens. Additionally, if the property is jointly owned or inherited, the title deed must be clear of any disputes or claims. NRIs must also ensure that there are no outstanding debts or dues to any authorities.

Registration Documents:

To register the sale deed, NRIs need to provide proof of their current address, such as utility bills, along with passport-sized photographs. Identification proof documents, such as passports and PAN cards, are also required.

The following documents are necessary for NRIs, PIOs, or OCIs purchasing under construction projects in Thane:

NRI Passport

Copy of Visa

Passport Size Photographs

PAN Card (Permanent Account Number)

Address Proof

OCI or PIO Card (Person of Indian Origin)

Additional documentation for salaried individuals includes:

Copy of the appointment letter

Bank statements for the preceding six months

Additional documentation for self-employed individuals includes:

Income proof

Copy of the business's certificate of incorporation

Deed of partnership (if applicable)

Bank statements in the applicant's name for the last six months

Bank statements for the preceding six months in the business's name

Proof of office address

Conclusion:

Investing in under construction projects in Thane provides NRIs with an excellent opportunity to fulfill their emotional connection to India while potentially gaining high returns on their investments. By following the considerations outlined in this guide, NRIs can navigate the property buying process smoothly. It is crucial to choose a power of attorney wisely, ensure compliance with RERA regulations, conduct thorough research, and seek professional advice when necessary. By doing so, NRIs can make informed decisions and maximize their investment potential in under construction projects in Thane.

Squarefeet Group

To Know About 2 BHK Residential property in Thane GB road 

Visit: https://www.squarefeetgroup.in/

[propertyexperttips]

NRI SELLING PROPERTY IN INDIA CAN SAVE TDS

If you plan to buy a property from a non-resident Indian (NRI), you must know that the process is complicated. More stringent rules are imposed. As a buyer, you have been while making such deals. Tax has to be deducted before making the payment to the seller which is commonly referred to as TDS (tax deducted at source). 

Tax should be deducted only on sale price and not on tax gains, hence the buyer is liable to deduct TDS on entire sale proceeds. Hence the buyer is liable to deduct TDS on sale proceeds. Hence advisable to NRI seller, get lower rates TDS certificate in advance. 

Capital gains tax provisions for an NRI are similar to those for a resident individual except for the applicability of TDS provision. Like resident investors, capital gains tax for an NRI depends on the holding period and the type of property sold. 

If an NRI is selling property in India, the buyer is required to deduct TDS at the rate of 20% in case of long-term capital gains. However, if the property is sold before two years, TDS shall be deducted at the rate of 30% as a short-term capital gains tax. 

Written By 

Property Channel Expert 

Anurodh Jalan 

Jalan Property Consultant 

8801003684

[legal-blogs]

NRI Taxation: A Complete Overview

Tax Exemptions for NRIs

There are several types of income that are exempt from nri taxation in india:

Accounts with NRE/FCNR interest

Certificates and bonds issued by the government and notified to the government of their interest earnings

Dividends from domestic Indian companies

In the long run, capital gains from listed equity shares and equity-oriented mutual funds can be significant

Sections and conditions apply to exempting capital gains:

Capital Gains Account Scheme of 1988 stipulates that Section 54 applies if you sell a house property and use the proceeds or part thereof to buy another property or deposit it in a federation or other bank.

If you sell an estate other than a house and incur capital gains, this exemption can be claimed on the purchase or construction of a new house in proportion to the sale proceeds.

Bonds issued by the Rural Electrification Corporation and the National Highway Authority of India are subject to Section 54EC - Long-term capital gains. Since these have a redemption value, selling them before three years is not a good idea. The maximum amount for such investments in 2014 is 50 lakhs, depending on the budget

Note that all of these exemptions are subject to the current tax laws.

Tax Deductions for NRIs:

The taxation of NRIs is stricter than that of residents. The following methods can be accommodated under tax deductions:

NRIs are allowed to deduct under Section 80C

Insurance coverage is only available to NRIs, spouses, and children of NRIs. The sum assured must not exceed 10% of the premiums paid for life insurance.

The tuition fee in India is the cost of educating two children full time at an institution

An NRI can deduct stamp duty, registration fees, and other expenses related to transferring a house property to them for tax deduction purposes.

LIC Mutual Fund's Unit-Linked Insurance Plans (Dhanraksha 1989) or UTI's Unit-Linked Insurance Plans

A vacant house can be deducted for interest paid on a home loan up to a maximum of INR 2,00,000 from its property income

Allowed deductions for NRIs under Section 80D

Aside from premiums for the immediate family, dependents will also pay premiums

Up to a maximum of INR 5000 for preventive health check-ups

In accordance with Section 80E, NRIs may deduct interest paid on education loans taken for themselves, their spouses, children, or dependent students for up to eight years or until the loans are repaid. There is no cap on interest rates

Only NRIs who have made the appropriate donations according to Section 80G may claim deductions under Section 80G through donations.

Savings bank account interest is deductible up to 10,000 rupees by NRIs under Section 80TTA

Investing the proceeds of the sale into another house or specific bonds can result in an exemption if the property has been owned for more than 36 months. When a new bond or property is less valuable than the proceeds, a tax exemption may be available

Tax Returns for NRIs:

NRIs do not have to include income from investments and long-term capital gains in their taxable income as discussed above. Income from these sources is subject to tax deductions at source. There may also be other sources of income that must be declared and taxable according to prevailing tax laws.

Investments and long-term capital gains may, however, result in TDS exceeding the individual's tax liability. For a refund or exemption, a tax return must be filed.

The Income Tax Department of India's online portal is the preferred method for NRIs to file their tax returns.

The Complete Picture of NRI Taxation:

Understanding whether one is actually an NRI is essential in light of FEMA's guidelines. To avoid paying excess taxes, one should take into account the above exemptions and deductions. If the TDS exceeds their tax liability, NRIs must file a tax return with proof of investment and income to receive a refund if they don't use forms 15G and 15H.

NRIs can also be subject to double taxation, so they should ensure they understand and gather proper proof of their tax paid in India so that they can take advantage of the Double Taxation Avoidance Agreement signed between India and many nations.

Trademark Class: What is trademark class? & Basics

According to the NICE classification for trademarks, also known as the International Certification of Goods and Services, trademarks are divided into 45 different classes. Various goods and services are represented by various trademark classes.

To avoid discrepancies, it is necessary to conduct a trademark search prior to filing a trademark registration application. Choosing the wrong trademark class can impede the registration process if the mark is incorrectly classified.

Business activities that involve various goods or services that fall under different trademark classifications can result in trademark applications being filed in more than one class. Additionally, even if a trademark is registered under one class, another entity can file a trademark application under another class for the same mark.

Therefore, filing a trademark application under one class does not guarantee complete exclusivity over the mark. Registration of a trademark only includes exclusivity for the mark's use in the class of goods or services for which it is registered. You can find the right trademark class for your goods or service using the trademark class finder tool.

A total of 45 classes are listed below, 34 of which fall under the Goods section, and 11 under the Service section.

Basis of Trademark classification

Trademark Classification of Goods

Finished products are classified based on their function and purpose. Suppose the product is not listed in any of the classes, then it is compared with the other finished products.

All the classes corresponding to a product's functions can be used to identify a multipurpose product. The raw materials used for the products or the mode of operation of the products should be taken into account if those functions are not mentioned in any class.

Raw materials and semi-worked products are classified by their materials. In cases where the product consists of different materials, it is organized according to the material that dominates.

Trademark Classification of Services

As described in the explanatory notes and headings of the service classes, services are classified according to the branches of activities they cover.

Rental services get classified in the same class

In the same category as the services related to the advice, information, or consultation, are services that provide advice, information, or consultation.

Trademark Class 45 - Personal and Social Services

A trademark is a recognizable sign, design, or expression that identifies products or services of one source from those of another, although service marks are trademarks used to identify services. It is a type of intellectual property consisting of a recognizable sign, design, or expression that distinguishes a product or service from that of another source, although service marks are usually trademarks for services.

Trademarks are classified into 45 classes, and goods and services are classified into different classes. There is a different registration requirement for each class. There are almost 80,000 products and services categorized in two sections - Classes of Goods and Classes of Services. The purpose of this article is to explain what Trademark class 45 is.

Trademark Class 45

Trademarks must be applied for or registered under classes, and each class represents a distinct class of goods or services. This post covers comprehensively the services that fall under Class 45 of the trademark classification. The NICE classification heading for class 45 is "classes of services".

Types of Services come under Trademark Class 45

Individuals, groups, organizations, and enterprises receive legal services from lawyers, legal assistants, and personal advocates

Safety investigation and surveillance services

Social escort services, matrimonial agencies, and funeral services provided to individuals in relation to social events.

Types of services that do not come under Trademark Class 45

The provision of direct assistance in the operation or function of a commercial enterprise

Services related to financial affairs and insurance

Escorting Of Travelers

Security Transport

Services Consisting Of All Forms Of Education Of Persons

Performances Of Singers Or Dancers

Computer Services For The Protection Of Software

Services Provided By Others To Give Medical, Hygienic Or Beauty Care For Human Beings Or Animals

Certain Rental Services

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Get NRI Lower TDS Certificate Contact : 93726 44735 Mail: cs@aktassociates.com Visit: https://aktassociates.com/nri-lower-tds-certificate-sale-of-property-in-india

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Want to buy property from NRI? But you don't have knowledge about how TDS deduction applies on the purchase of property from NRI, and how can you use it for your advantage? Get your answers from this article and clear your doubts. If you have any type of inquiries, then contact us at +91-9779397777

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Things to remember for NRI who wish to buy property in India

Summary:

Over the past few years, the real estate sector in India has boomed and so there has been a considerable rise in the NRIs buying property in India. So if you want to own your own house in India here are few tips that PropertyPistol would like to highlight before hunting a house for yourself.

Appreciation in the property

As per the reports, the appreciation rate in the property bazaar is quite high provided you invest in the right location and right time. So if you have bought your house for a certain amount, you can trust on the fact that it shall definitely see growth within a less span of time.

Tax benefits

If you are an NRI who wishes to buy a house in India for investment, make sure that you do not sell the property that you have purchased in less than 3 years as it shall be included in short term capital gains. Also in India, if you buy a property costing more than 50 lakhs you need to deduct 1% TDS when you pay to the client. If you sell your house after 36 months, the Income-tax the department also gives you an option of chopping down your long term investments through tax. You can use the saved amount in buying another property.

IT returns in India is mandatory

Filing IT returns is mandatory in India. So if you rent the house that you bought as an investment, your income will be taxable which will ultimately make you spend more through property tax, stamp duty, registration fees for your investment property. Having a PAN card will make the process rather easier.

Say No to Non-RERA project

RERA has indeed been a boon for people who have thought of it. You will no more be created by developers who often take buyers for granted especially if you are an NRI. It’s always smart to invest in RERA project because it gives clarity and keeps transparency about subjects like carpet area, built up area, amenities which the developer usually ignores to fulfill.

Home Loan for NRI

The structure of home loan remains the same for an NRI as well as Indian residents who are repaid in equated monthly installments (EMI). The only the difference lies in the interest rate that is offered to NRIs which is slightly higher than the loan tenure provided to Indian residents. The reason for NRIs paying a higher rate of interest is that they earn a stronger currency

No restrictions on investing more than one project

In India, the one thing that NRIs love is that there are no restrictions on buying a property. There’s only one thing you must keep in mind, the tax liability would vary according to your need if you want to lease a property you purchased or you wish to reside.

Conclusion: So if you are an NRI and wish to invest in the real estate the sector, make sure you know the in and out of the market scenario.

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Income Tax for NRI

You are considered an Indian resident for a financial year if you satisfy any of the conditions below:

When you are in India for at least 182 days during the financial year

You have been in India for 60 days in the previous year and have lived for 365 days in the last four years.

If you are an Indian citizen working abroad or a crew member on an Indian ship, only the first condition is available to you. If you do not meet any of the above conditions, you are a Non-Resident Indian. 

Resident but Not-Ordinary Resident (RNOR) definition amended

Individuals will be considered as RNOR for the year if they meet the following conditions:

If you’ve been a non-resident in India for 9 years out of 10 previous years preceding the year of consideration, or

If you have stayed in India for 729 days or less during 7 previous years preceding the year of consideration

The Finance Act 2020 has amended the residency provisions to include Indian Citizen/Person of Indian Origin, who comes to visit India shall now be considered as RNOR subject to the following conditions:

Total income other than foreign income is Rs 15 lakh or more,

The individual has stayed in India for more than 120 days but less than 182 days in the previous year, or

The individual has stayed in India for 365 days or more in four years preceding the previous year

Before this amendment, such individuals were classified as non-residents. Due to the amendment mentioned above, the individual’s residential status may be classified as RNOR, which will lead to loss of DTAA benefits, increased scope of total income for taxability, loss of various exemptions allowed, etc.

It is to be further noted that in the above amendment, an individual staying for more than 182 days shall be classified as a resident irrespective of the level of income in the previous year.

Deemed residency status introduced in Finance Act 2020

Finance Act 2020 introduced the concept of ‘Deemed residency’. According to this, Citizens of India earning more than Rs 15 lakh from Indian sources shall be deemed a resident of India if they are not liable for payment of taxes in any other country.

The deemed residents shall be classified as RNOR with effect from the financial year 2020-21. This amendment was brought in force to tax the incomes of the Indian citizens who are not liable to pay tax in any country.

An NRI’s income taxes in India will depend upon his residential status for the year as per the income tax rules mentioned above.

If your status is ‘resident’, your global income is taxable in India. 

If your status is ‘NRI,’ your income earned or accrued in India is taxable in India.

When an NRI receives the amount in India, your salary income is taxable, or someone does it on your behalf. Therefore, if you are an NRI and receive your salary directly to an Indian account, it will be subject to Indian tax laws. This income is taxed at the slab rate you belong to.

Income from salary will be considered to arise in India if your services are rendered in India.

So even though you may be an NRI, if your salary is paid towards services you provide in India, it shall be taxed in India immaterial of the place where you are receiving the income.

A tenant who pays rent to an NRI owner must remember to deduct TDS at 30% while paying rent.

The income can be received to an account in India or the NRI’s account in the country they are currently residing in.

Income from other sources like interest income from fixed deposits and savings accounts held in Indian bank accounts is taxable in India. Interest on NRE and FCNR accounts is tax-free. Interest on NRO accounts is fully taxable..

Any business income earned by an NRI from a business controlled or set up in India is taxable to the NRI.

Any capital gain on transfer of capital asset which is situated in India shall be taxable in India.

Capital gains on investments in Indian shares, securities shall also be taxable in India. If you sell a house property and have a long-term capital gain, the buyer shall deduct TDS at 20%. However, you can claim capital gains exemption by investing in a house property as per Section 54 or investing in capital gain bonds as per Section 54EC.

When NRIs invest in certain Indian assets, they are taxed at 20% on the income earned. If the special investment income is the only income the NRI has during the financial year and TDS has been deducted, then such an NRI is not required to file an income tax return.

Similar to residents, NRIs are also entitled to claim various deductions and exemptions from their total income.Most of the deductions under Section 80 are also available to NRIs as available to residents.

NRI or not, any individual whose income exceeds Rs 2,50,000 is required to file an income tax return in India and the last date is 31 july. 

Note data taken from - Clear Tax

For Call Mobile 9810166145

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Tips to optimize tax savings for NRIs earning abroad.

Non-Resident Indian life comes with its own sets of challenges. While they do have many perks, they also have to deal with problems like double taxation. Non-Resident Indians earning abroad are taxed on their foreign income by their resident country. They are taxed for investments, properties, or any income that they may have in India as well. It’s natural to want to make the most out of your earnings in India and use tax deductions and provisions made available for NRIs. There are many ways in which an NRI can optimize taxes in India while earning abroad.

Before we get into tax optimization tips, it’s important to identify which NRIs are supposed to pay taxes in India. If you are an NRI with active business transactions, investments, and assets from which you make money in India, you are liable to pay taxes to the Indian tax authorities.

As an NRI you have to pay taxes on the following:

● All income accrued in India

● Direct or indirect income received in India

● Income received, accrued, or accumulated in India when deemed as such by the Indian tax authorities.

NRIs who do not have any of the above incomes are exempt from paying taxes in India. If you fall under any of the above categories, here are some tax optimization tips that will come in handy.

Deductions

Non-Resident Indians do not enjoy many tax deductions that resident Indians enjoy, such as investing in social schemes like Public Provident Funds or the National Savings Certificates. However, NRIs can invest in the National Pensions System and avail tax deductions of up to Rs. 1.5 lakh attached with it. An additional deduction of Rs. 50,000 is also allowed above the Rs. 1.5 lakh limit to encourage more NRIs to invest in the scheme.

Get a PAN Card

Most NRIs who have moved abroad have a PAN card, but if you don’t have one, getting one made would save you a lot of money. Individuals with a Personal Account Number (PAN) can claim an income tax refund. Income in India beyond a certain point is subject to Tax Deducted at Source. If you don’t have a Permanent Account Number, you might have to pay a higher TDS amount.

Maintain NRI Status

NRIs do not have to pay taxes for income accrued abroad in India. However, if you have lost your NRI status, then you might have to pay taxes on your income to the Indian tax services. In order to avoid losing your NRI status, you need to plan your visits to India carefully since your tax liability in India changes with your residential status.

Provisions

As an NRI, you can take advantage of the tax provisions for long-term assets purchased in foreign currency. When you sell or transfer your foreign assets, you cannot deduct for capital gains received but you can get exemptions under Section 115F of the Income Tax Act.

Claim home loan interest

Many Non-resident Indians invest in properties in India. If you are one of them and have applied for a home loan, you can claim tax deductions. Once you’ve paid the interest on your home loan or the property tax, you are eligible for a tax deduction. If at all you decide to sell your property, you will have to pay capital gains tax, and hence recommended to limit the number of capital gains made in a year to stay in the lower tax bracket.

While you can use the above methods to optimize taxes in India, it would be best to take expert opinion in this matter. After all, every individual's corpus and investment portfolio is different, and hence, with expert advice, you can maximize your tax savings with the right guidance. SBM Bank India provides a range of banking and investment solutions to Non-Resident Indians. From NRE Savings Accounts, NRO Savings Accounts, FCNR Deposits, home loans to premium privileges, extraordinary experiences, wealth management solutions with expert assistance and so much more, SBM Bank India brings NRIs a world-class banking experience. Their banking experts will not only help you put together an impressive investment portfolio but will also help you optimize tax savings efficiently.

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NRI Taxation- Taxability of sale of property in India

Form 15CA and 15CB 

NRI Tax return

Like any Resident individuals, sale of property in India by NRIs are subject to capital gain tax on any appreciation made on such property. However, such capital gain tax may be avoided if such capital gain proceeds are invested in the manner prescribed under the Income Tax Act. Further, NRIs can also repatriate the sale proceeds of property outside India after payment of appropriate taxes and filing of form 15CA and 15CB.

Such sale of property and relevant capital gain tax on same need to be reported while filing NRI Tax return in India. Similarly, any income earned by NRIs by giving Indian property on rent would also be subject to tax in India after statutory deduction and such income will also form part of NRI Tax return in India.

It may be noted that all the transactions in India of NRIs relating to immovable property is governed by the guidelines issued under FEMA and RBI regulations.

Any person, not being Indian citizens and/or companies which are not incorporated in the country, are required to get prior permission of the RBI to acquire, hold, transfer or dispose of an immovable property in India.

TDS on Property

When a normal resident buys property from an NRI, she/he must have to deduct TDS at 20% if the property has been held for more than two years and at 30% if the property is being sold within two years. The deduction must include TDS plus surcharge, and education cess.

Documents required by NRI for selling property in India

1. Passport- It serves as a proof of identity for the person involved in the transaction 2. PAN Card- Some NRIs of select countries are to given PAN numbers which have their foreign residence address. 3. Tax Returns- If the NRI has been earning money from the property, tax returns for the ownership period should be kept. 4. Address Proof- Documents in support of address in India and abroad have to be provided like ration card, telephone bills, electricity bills, life insurance policy statements, aadhar card etc. 5. Sale Deed- Sale deed is a legally binding agreement between the buyer and seller. 6. Encumbrance Certificate- An encumbrance certificate is necessary to assure that the property has no dues to any legal authority.

The process of selling a property owned by an NRI in India is as follows:-

Ø  Hire a broker to conduct a comprehensive valuation of the property and determine its value.

Ø  Arrange all the necessary documents of the property.

Ø  The amount can be received only in a FCNR or NRE/NRO account

Ø  The NRI would be exempt from tax if he/she re-invests the capital gains of the property in another property or tax exempt bonds.

Ø  Capital gains are taxable in the year in which the property is transferred, irrespective of whether the sale payment has been received in full or not.

Ø  TDS is deducted at the time of making the payment to the NRI. All the information regarding the TDS and it’s rate have to be mentioned in the sale deed between the NRI seller and the buyer.

Ø  Any sale proceeds may be remitted outside India subject to payment of taxes in India and filing of form 15CA and 15CB.

Ø  Report the transaction relating to sale of property and capital gain or loss thereon while filing NRI Tax return in India.

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Investment in India by NRI: Real Estate 2021

Investment in India by NRI: Real Estate 2021

Real Estate is a great option amongst all the investment options available in India for NRIs. Real Estate is a hot-spot in India for investors, especially with the massive NRI influx. It's easy to buy a house or land. There are many reasons to invest. Some are looking for a comfortable retirement. Others want an asset that will bring in decent income. Still others just want a place where they can live after their return. There are many reasons, but there is only one. Real Estat Being an NRI entails certain rules and regulations. Real estate investments are subject to restrictions. Let's start by understanding the properties that NRIs can invest in.

What is a propertie? Which properties are available for NRIs to buy in India?

NRIs are allowed to buy residential and commercial properties in India. They cannot buy Agricultural Land, Farm House, or Plantation properties. They cannot be passed on or given as gifts. We know the Indian properties that NRIs can purchase in India. We now need to talk about the various mediums available to invest in Real Estate India. NRIs can invest in India Real Estate: What are the best ways for NRIs to do so? The following channels allow NRIs to invest in real estate properties:

1. Use self-transactions Indian NRE/NRO/FCNR account (B) funds

Funds in their NRE/NRO/FCNR (B) accounts in India

Funds transferred to India from overseas (in your own account; you can't pay the seller directly)

2. NRIs can apply for a loan facility (in Indian Rupees) to finance up to 80% of their property. This is based on the individual eligibility of each NRI. The loan can be repaid via:

Inward Remittance Money transferred to your account from abroad

Indian Bank accounts have funds in their NRE/NRO/FCNR.

Rent the property you have bought

Close relatives credit the borrower's account (under section 6. of the Companies Act 1956)

Notice:Traveller's checks are not eligible for payment.Pre-paid fixed-amount cheques that can be used to pay across borders (pre-printed, pre-printed fixed-amount cheques)Or in foreign currency notes. All payments must only be made in India

Documents needed to invest in Real Estate

An NRI must have the following documents in order to invest in Real Estate in India:

Passport

Address proof

Permanent Account Number (PAN Card)

Photographs

This is it! These are the essential documents that you need to invest in Real Estate in India. Why do NRIs choose to invest in Real Estate? What are the benefits? Let's find out.

NRIs should not buy houses in India.

Real estate investments in India offer many benefits. You can choose the benefits that suit your needs. Let's take a look at the main benefits of an NRI investing in Real Estate in India.

Rent IncomeIf they are located in a established neighborhood, real estate properties can attract a handsome rental income.

Price Benefits and Long-Term ReturnsIndia's real estate industry is growing at 19.5% per annum (CAGR 2017-18; Source : IBEF). This trend of growth means that any investment in this industry will yield lucrative returns over the long-term with an exponential growth in prices.

Retirement PlanWith the Reverse Mortgage, investors in real estate can make a living from their investments. This is a type of loan that allows people over 62 with substantial home equity to borrow money against the home's value as a lump sum, fixed monthly payments or line of credit. India is a great place to start.

Tax Benefits:Multiple tax exemptions are available in India for property loans. Section 24: Exemption on the interest that you pay on your home loan. Section 80C: Exemption on principal repayment. Watch video to learn how you can save taxes on capital gains by selling your property.

The taxation aspect is another important consideration when investing in Real Estate in India. The tax on Real Estate can further be subdivided into capital gains and rent. TDS for the purchase of a property is another important instrument that we must deduct from our income and pay to the authorities. Each one will be covered.