OUR Real Estate

Question by Nirav: Investing in Real estate in India from US?
Hi,

I work in the United States. I am planning to invest money in real estate in India. I was planning to do the following,

1. Take a Home equity loan in United States.
2. Send money to a NRE account in India.
3. Invest this money in real estate in India.
4. Book some profit and deposit the money back to my account in US.

I had the following questions,
1. What are the taxes that I will have to pay in India.
2. When I take the money back in US, how will I be taxed.
3. Is everything that I am doing legal here?

Many thanks in advance,
Nirav

Best answer:

Answer by NARAN
IN INDIA, I THINK – REAL ESTATE
INVESTMENTS WILL EARN U UPTO
20 – 30% RETURNS PER ANNUM*.
(AT BARE MINIMUM LEVELS)

U CAN BUY THE “PROPERTY” USING
THE MONEY FROM YOUR NRE ACCOUNT.
AT THE BUYING STAGE; STAMP DUTIES
ARE THE ONLY EXPENSE (TAX) + BROKER’S
COMMISSION (if one exists)

“BOOKING THE PROFIT” – THE SALE
AMOUNT REALISED WILL HAVE TO BE
CREDITED TO THE “NRO ACCOUNT”. THIS
IS A RUPEE ACCOUNT (INR). YOU NOW
CAN’T CREDIT IT BACK “DIRECTLi” TO
THE “NRE ACCOUNT”.

FUNDS “PREPARING TO FLOW” OUTSIDE
FROM INDIA, DOES HAVE SOME HURDLES
TO CROSS. PLZ DO TAKE A MORE EXPERT
COUNSEL ON THE “REPATRIATION” ISSUE.

IF U NEED SOME SUGGESTIONS, e-mail
ME AT faizal.email@gmail.com

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