Non Resident Indians (NRIs) always scout for options to invest their foreign exchange earnings in the Indian market. Investment in real estate has always been the preferred choice for the NRIs, especially after the rupee depreciation. Ease in Indian regulations and taxation has resulted in a spurt in investment, especially in the last decade. This article decodes the regulations for the investment in real estate by NRIs and its impact on taxation. FEMA empowers the Central Government to prescribe, in consultation with the RBI, rules pertaining to capital account transactions. Reserve Bank frames regulations to prohibit restrict or regulate the acquisition or transfer of immovable property in India by certain person residents outside India.
EC and CC are the Encumbrance Certificate and Completion certificate.»Proceed