NRIs Guide for Buying Apartments/Flats in Trichy 2024

A lot of Non-Resident Indians (NRIs) have a particular place in their hearts for India. The desire to own a piece of India real estate is a typical ambition, whether it’s because it’s the city where they were raised, a location they travel regularly to connect with relatives, or just a land of rich culture and investment potential. However, with various rules and restrictions, the process of purchasing an apartment in India as an NRI can appear overwhelming. Throughout your property journey, this thorough book tries to demystify the process and provide you with the knowledge and tools to make wise decisions.

Knowing your eligibility is the first step. Indian nationals living abroad, also known as Persons of Indian Origin (PIOs), are known as NRIs. Although they are not considered NRIs, Overseas Citizens of India (OCIs) are permitted, under certain conditions, to buy residential properties in India. It is imperative to bear in mind that Non-Resident Indians (NRIs) are not authorized to purchase agricultural land unless it is obtained via gift or inheritance.

NRI real estate investments in India are governed by the Foreign Exchange Management Act (FEMA). With the exception of agricultural land, it permits NRIs to acquire residential and commercial properties using money obtained through:

1. Non-Resident External (NRE) accounts: These rupee accounts are capable of storing money earned outside.
2. Non-Resident Ordinary (NRO) accounts: These rupee accounts are able to receive income from sources within India, such as property rentals.
3. Foreign currency deposits made overseas are kept in FCNR (Foreign Currency Non-Resident) accounts.

Now that you are aware of your eligibility, let’s look at our financing alternatives. The initial investment and any recurring maintenance expenses can be covered by NRIs using their NRE accounts. Regulations do, however, apply to the repatriation of cash. After paying any necessary taxes, you can return the property’s sale proceeds home.

NRIs can apply for home loans from approved Indian banks and housing finance firms. However, compared to resident Indians, NRIs may have different qualifying requirements, interest rates, and loan-to-value ratios.

• Choosing and negotiating properties: Make your decision after careful consideration.
• Signing documents: This covers the power of attorney (if relevant) and the sale agreement.
• Payment: Pay the agreed-upon down payment and the outstanding balance.
• Registration: Let the appropriate authorities know about the property.

Extensive research is essential. Check the legal documentation, clearances, and ownership to the property. It is strongly advised to speak with a lawyer who specializes in NRI real estate transactions.

When a property is sold, NRIs may be subject to capital gains tax and income tax on rental income. Seek consultation from a tax specialist for specific recommendations.

1. Managing the property from overseas: To take care of upkeep and tenant relations, think about working with a property management business.
2. Extended strategies: Think about your objectives for the property. Will it be for future sale, rental income, or use for personal use? If applicable, familiarize yourself with inheritance laws.

An NRI can purchase an apartment in India by going through the same process as a citizen of India, but in addition to obeying certain tax and repatriation laws, they also have to go by FEMA regulations and use NRE or NRO accounts for transactions.

It is legal for OCIs and NRIs to purchase residential and commercial real estate in India. When buying a property, you are not required to send any correspondence or intimations to the Central Bank. Farmhouses, plantations, and agricultural land cannot be purchased by NRIs in India.

In terms of taxes, the Indian government levies charges on nearly all incomes earned in the country by both resident Indians and non-resident Indians (NRIs). But when buying a residential or commercial property in India, these non-resident Indians (NRIs) are also qualified for a number of tax breaks and subsidies, just like resident Indians.

An Indian citizen who resides in India for less than 182 days over the course of the previous fiscal year is also considered an NRI. In contrast, a PIO is a foreign national (except from Bangladesh and Pakistan) who has ever held an Indian passport, has Indian ancestry in the family, or has an Indian spouse.

When foreign nationals buy real estate in India, there are tax ramifications. Finding out if the property seller is a resident or non-resident under the Income Tax Act of India is crucial to comprehending this. When an NRI purchases real estate in India, they are required to pay TDS, or Tax Deducted at Source. This amount is determined by the seller’s residency status and the type of capital gains that were made.

1. If an NRI purchases an Indian residential property from a resident and the sale consideration worth is more than Rs 50 lakh, he is required to deduct TDS at the rate of 1%.
2. On the other hand, TDS deduction should be set at 20% if an NRI buys a property from a non-resident and long-term capital gains (LTCG) are applicable.

If short-term capital gains apply, 30% of TDS must be subtracted. If a property is sold within two years of purchase, short-term capital gains apply. The property has a long-term capital gain if it is sold two years after it was purchased. Furthermore, the tax deduction must be deposited 30 days after it is made. A one percent monthly late deduction of TDS penalty will be imposed for non-deduction or late tax deduction.

NRIs must pay taxes on their capital gains and rental income, although the IT Act has numerous provisions that offer tax incentives and other subsidies, such as PMAY, to these offshore Indians.

The following are the tax benefits that non-resident individuals can receive:

1. An NRI is eligible to use interest deductions, deduct property taxes, and claim a standard deduction of 30% when it comes to house loans.
2. An NRI is not obliged to file an IT return if their main source of income during the year in India is from investments in Indian assets from which TDS has already been deducted. Sections 54, 54F, and 54EC must be used to claim the exemption (unlike the short-term capital gains).
3. Permitted deductions include principal repayment and a claim for section 80C stamp duty and registration fees (paid at the time of the property purchase).
4. If capital gains from the first property’s sale are put back into designated bonds, there is an exemption.
5. Deductions are only permitted in the following circumstances:

• Permitted for an insurance policy with a premium of less than 10% of the sum assured, and only if the policy is in the name of the NRI or his/her family.
• Iincluded interest paid on student loans and tuition for full-time courses at any Indian school, college, or university
• It is also applicable to contributions made to any kind of nonprofit organization.
• To invest mutual fund sums up to Rs 1.5 lakh in the Equity Linked Savings Scheme (ELSS).
• On interest received by savings certificates and bonds issued by the government.
• Accessible for the paid health insurance premium, up to Rs 50,000 for senior adults and Rs 25,000 for insurance covering oneself, one spouse, and one dependent kid.

The benefits of apartments for investors are numerous. Among the best kinds of residential real estate is this one. The following are some advantages of purchasing an apartment:

1. For a far lower price, you get receive an apartment in a desirable area.
2. You are not required to perform any personal maintenance on the property.
3. Apartments are easier to find renters for, particularly if they are in a desirable area.
4. Living in an apartment will provide you with a feeling of community.
5. Additionally, you’ll be closer to neighborhood hubs and have greater access to amenities.

Choosing the perfect location is crucial. Popular areas for NRIs in Trichy include:

Thillai Nagar, Srirangam, K K Nagar, Karumandapam, Thiruvanaikoil, Cantonment, Tennur, Puthur

If you are looking to invest in a flat in Trichy, Trichy is a great avenue. Located in Tamil Nadu, it offers a balanced lifestyle and a rich real estate market. Jeyam Builders is one of the most reputed builders in Trichy.

They offer 2 and 3 BHK apartments through their recent project Jeyam’s Empire and Jeyam’s Tulip.  A breathtaking residential complex with world-class, modern amenities that will elevate your lifestyle.

Amenities at Jeyam’s Empire:

• Gym
• Club House
• Amphitheatre
• Party hall
• Open-air kid’s play area
• Supermarket
• Theatre
• swimming pool
• Badminton Court
• Cafeteria
• Senior Citizen corner

Finding the Right Apartment:

• Jeyam’s Empire: 1/14, 1st Main Rd, LIC Colony, Ayyappa Nagar, K K Nagar, Tiruchirappalli, Tamil Nadu 620021
• Jeyam’s Tulip: 3rd Main Rd, Thirunagar, Karumandapam, Tiruchirappalli, Tamil Nadu 620001

Owning an apartment in Trichy offers NRIs a connection to their heritage, and rental income potential. Understanding regulations, financing options, and the purchase process ensures confident decisions. Consulting professionals is vital for a smooth and successful property investment.

Don’t miss out on this incredible opportunity to invest in your future. Contact us today to schedule a visit or learn more about our projects. Let Jeyam Builders help you make your dream of owning a home in India a reality!

Visit our website Jeyam Builders or call us phone no: 0431-4220050 now. Your dream home in Trichy awaits!