Despite slow price rise in the Indian property market, there has been a significant shift in the NRIs to invest in India. Let’s find out the reason for India being one of the most lucrative destinations for the NRIs.
IMPLEMENTATION OF GST (GOODS AND SERVICES TAX)
Implementation of Goods and Services Tax is a game-changer for the Indian economy. This latest and simpler tax regime will make black money even more superfluous. As a result, it will now become part of the white money, hence positively expanding the Indian economy and its fundamentals. Due to tax transparency and clear business methods, more and more NRIs to invest in India.
MORE NRI INVESTMENT OPTIONS
From Mutual Funds to Direct Equity to Real Estate sector and Liquid Funds, today, there are various investment options for NRIs to invest in India. As per the RBI (Reserve Bank of India) guidelines, Non-Resident Indians can hold an account in Indian banks. Additionally, NRIs having their parents or relatives in India can open joint accounts which give them a good investment option.
Due to adequate food management by the Indian administration, inflation has massively dropped in the last few years, followed by a decrease in the prices of crude oil. Additionally, the Reserve Bank of India has cut down the policy rate by 200bps (basis point – a common unit of measure for interest rates and other percentages in finance).
The tax liability for equity is as same for the NRIs as it is for the residents. The most important advantage which an NRI gets is that he must pay taxes in India in case of any investment in immovable property (flats, houses, and land).
In other words, the income generated from the real estate companies in Kolkata or any property would be taxable in India and not the country where he works. There are various ready to move in projects in Kolkata such as The V Kolkata and Sea View in Mumbai that help buyers generate high returns of about 25%. The rate of interests and other commercial terms in India is way more attractive than in most other countries which makes it a favourite destination for NRIs.