There are various points that an NRI should remember while investing in a property:
1. It is important to check the RERA registration of the seller/developer.
2. Check project approvals and they can be verified from the corporation or the sanctioning authority.
3. Ownership document should be confirmed from the concerned department.
4. Sale deed, No Objection Certificate (NOC) from builder/developer, NOC from banks, Building Plan approvals, completion certificate should be checked and verified.
What tax do NRI’s have to pay on their rental income?
An NRI has to pay tax in the country from where the income is being generated but the tax is not payable on the entire rental income however there are some deductions an NRI can avail.
1. Standard deduction at the rate of 30% on the taxable value.
2. Taxes are to be paid to the municipal authority with respect to the concerned rented property.