Tax Saving Tricks for NRI Property Management

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Tax Saving Tricks for NRI Property Management
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In which property NRIs can invest?

• Movable property, like house, shop, bungalow and
  apartment.
• Agricultural land, farmhouse and plantation
  property are disallowed to own.

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How many properties NRIs can purchase?

• Unlimited number of commercial and residential
  property.

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Impact on taxation for owing multiple properties
by NRIs
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What Indian Income Tax Act states?

• Although an NRI can own multiple properties yet
  only one can be claimed self-occupied.
• Other properties ownership cant be claimed but
  can be used for self.
• If the property is rented out, its rental income
  will be taxable.

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What if an NRI inherits property although he
already owned a property?

• Inherited property is considered as a source of
  rental income.
• Its not essential that you rent it out but itll
  be considered so.
• Income tax act is applicable.

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Tax Savings
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Tricks to save Tax on rental income

• 1/3 of the total rental amount can be cut out as
  maintenance.
• Maintenance charge can be 30 of the rent.
• If paid property tax, you can ask for tax
  deduction.
• Interest paid on property loan can be deductible
  on tax.

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Tax Saving tricks on second property

• Claim can be made in full for EMI of 2nd homes
  loan.
• Full deduction on tax can be claimed for paying
  interest on 2nd homes loan (INR 1.5 lakh can be
  called for tax deduction to pay interest on 1st
  homes loan).

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Thank you
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