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Tax deductions and exemptions for NRI property owners

The loan eligibility for an NRI is calculated on the same lines as any other Indian resident

The Delhi NCR property market has become a favourite investment destination for non-resident Indians (NRI). According to rules, an NRI or a person of Indian origin (PIO) can buy any type of property in India except for farmland or agricultural property.

NRIs are also eligible for loans for buying properties in India. They can avail NRI loans from all major banks. The eligibility for an NRI is calculated on the same lines as any other Indian resident. NRIs can even rent out a property though the income earned from this source is taxable as per the Income Tax Act.

As an NRI, you are entitled to tax exemptions on the principle amount: like the amount spent towards repairs and collection charges, interest paid for any loan, payment of insurance premiums or any other tax paid to the state government. Only the remaining amount post these expenditures are considered taxable income.

However, income tax is applicable when buying the property. At the time of purchase of the property, an NRI may have to deduct income tax while making payments towards the purchase of the property.

Tax deduction on home loan

First-time individual homebuyers get tax deduction on interest of home loan (for self-occupied houses) under the newly inserted Section 80EE of the Income Tax Act. This rebate on home loan interest is however applicable only for home loans satisfying three conditions:

  • The loan is sanctioned by an approved financial institution or housing finance company
  • The loan amount is below Rs 25 lakh and the cost of is Rs 40 lakh or below
  • This should be the only house owned by the taxpayer at the time of sanctioning of loan

Deduction of an amount up to Rs 1 lakh can be claimed towards interest payable on home loan in the first financial year. If interest payable that year is less than Rs 1 lakh, then the balance can be claimed in the following year.

The amount of principal loan repaid is eligible for deduction under Section 80C.

However, the loan should have been taken from a bank or a housing finance company or a financial institution in India.

The aggregate of deductions under section 80C and 80CCC cannot exceed Rs 100,000.

But deduction on principal repayments is revoked if the property is sold within five years from the end of the year when the NRI taxpayer obtained possession.    More >>  NRI Property in India


How to verify a title deed

Immovable property cannot be sold by a mere letter of allotment and would require execution of a deed of conveyance

Buying a new house or an apartment will require a buyer to take a few measures to ensure a good title. Immovable property cannot be sold by a mere letter of allotment and would require execution of a deed of conveyance commonly known as a sale deed by the seller in favour of the buyer.

The following checklist will help verify the title:

(i)    The title deed /document is in the owner’s name, issued by the revenue record department under the seal of the tehsildar

(ii)     The owner’s title for the preceding 15 years (at least) shows no encumbrance(s) such as a mortgage existing

(iii)    The property is transferable and heritable

(iv)     The transferor is competent and/or authorised to transfer the property

(v)      The property is freehold.  In the event the property is a leasehold one, the prospective buyer will be required to submit an application to the authority in Noida to obtain a transfer memorandum, which is issued only after verification and whereafter, the purchaser will have to ensure execution and registration of a sale deed. The purchaser will have to check whether the lease rent payable is one time only or on a yearly basis and whether there can be any increase at a later date

(vi)     All receipts etc. pertaining to payment of taxes, electricity bills, and water bills must be checked

(vii)     The buyer could submit an inspection form along with Form 29 to the Sub registrar’s Office, to provide information on the location of the property and the date of original registration of the property.

(viii)   In the case of newly-constructed apartments, it would be desirable to require the builder to offer for inspection and verification of all necessary permission including sanctioned plans and environmental clearance if applicable

(ix)   The next step is to have the sale deed stamped with the requisite stamp duty and submitted to the office of the jurisdictional sub registrar of assurances. The buyer and the seller would be required to be present and complete prescribed formalities

(x)     The final step is to have “mutation” effected in the name of the purchaser by submitting an application together with prescribed an affidavit, indemnity bond, and a certified/ notarised copy of the registered title deed.  The circle revenue office will thereafter issue a mutation letter in favour of the buyer
More>>  Property Buying Tips

Pratap Venugopal is a partner at K.J. John & Co, an advocate firm based in Noida


Why Noida’s Sectors 61, 62 & 50 are still hot

These three localities remain the most preferred places to buy and rent property in Noida as prices continue to rise up with increasing population density

According to Happy Keys research, these three sectors recorded a steady increase in property values and this trend continued through the last one year, when property transactions were going dull across the entire Delhi-NCR stretch. In none of these sectors prices have fallen in the last three years.

Industry players attribute several reasons for this.

“These areas are no doubt well-developed in terms of infrastructure and presence of a lot of green pockets. But those who bought property here in 2005 are booking profits to move to larger units coming up in Greater Noida. Because of this, these sectors have witnessed significant transactions, even in the dull period of 2014-15,” says Ankur Budhiraja of AB Corporations, a real estate agency.

Location advantages

All three of these sectors are located centrally within Noida and Delhi just 30-45 minutes away.

Noida City Centre, the nearest metro station, is a mere 4-5 km from these locations. Then you have at least a dozen primary, senior and higher secondary schools in and around these localities.

“Looking at the kind of infrastructure these sectors offer, it is a complete package for an end-user,” says Rakesh Mahajan, a Noida-based realtor.

Further when we tried to find out what really makes these sectors a complete package, we observed that these localities have a number of parks and religious places as well.
In short, there is something for everyone. People residing in these areas can relax in lush green parks or visit temples nearby or spend time in the clubs nearby.

“It is such a great experience for my parents to visit the Sai Temple, roughly 800 metres away from my house in Sector 61 or for me to go to the club near Sector 50, or simply sit at the parks in the proximity,” says Roopak Bhardwaj, who recently bought a 2BHK in a housing society recently.

The other advantage these sectors present to the buyer is the mix of residential and commercial property.

With the rapid expansion of Noida, these localities are considered central points – shopping malls in Sectors 18 and commercial areas in Sector 63 and Sectors 16A.

“These sectors are equipped with sound infrastructural amenities. Sector 50 has all the facilities for a good family living. Good schools, hospitals, retail shops, restaurants, open spaces, park – all are available at walking distance,” says Jyoti Singh, a consultant at Narayain Realtors.

What’s out there

Property priced between Rs 60 and Rs 80 lakh is seeing the highest demand in Sector 62.

“With a more conducive realty market, we expect property values to rise in Noida. A large number of high-quality commercial, residential and retail projects are still being developed in and around these sectors,” says Rakesh Diwan of Diwan & Son Real Estate Advisors, a property consultancy firm in Noida.

The average price of a 3BHK in Sector 62 is between Rs 85 lakh and Rs 1.4 crore for a 1,250-1,400 square feet property.

For a 2BHK property, the average values range between Rs 60 and 80 lakh for about 950-1,100 square feet space. Though a number of projects are relatively new (below five years), 70 per cent property in the area are old constructions.

Sector 50 offers multiple choices for home buyers who are looking for options to invest.

According to Happy Keys data, the average price of 1,000 square feet 2 BHK flat is Rs 85 lakh whereas a 100 square yard plot is priced around Rs 1.7 crore.


Festive offering flood property market

Developers in Noida are wooing home buyers with a variety of schemes — from zero EMIs and massive discounts to cars and trips abroad

With Diwali round the corner, developers with projects in Noida and Greater Noida are wooing home buyers with new offers of discounts and package deals. Happy Keys takes a look at some of big offerings in Delhi-NCR market.

Take the case of Supertech. The developer has launched a ‘9 Days of Navratras – 9 EMIs free’ scheme on all its projects across Noida, Greater Noida, Ghaziabad and Gurgaon. This is first time in the recent 5-10 years that a developer is offering a scheme wherein the customers book any project and not pay the first 9 EMIs.

Ajnara, another leading player in the region, has announced a ‘7-7-7’ scheme. The customer needs to pay seven per cent of the property’s cost at the time of booking and can avail a Rs 7 lakh discount with the promise that the unit will be offered for possession in the next 7 months.  And this offering is available for almost all projects including Ajnara Daffodil, Ajnara Gen X, Ajnara Integrity, Ajnara Le Garden, Ajnara Homes, Ajnara Ambrosia and Ajnara Panorama.

Wave Infratech gas announced a festive offer on every booking at the Wave City Center (residential or commercial). Buyers can expect to get a gift voucher worth Rs 1 lakh from Tanishq per booking. Similarly, every booking in Wave City Township during the festive season comes with a gift voucher worth Rs 41,000. Clearly, this is a Diwali ‘dhamaka’ for investors during the festive period.

More>>  Property in Noida  Property in Greater Noida,  Property in ghaziabad ,  property in Gurgaon

Festive Look for your Home

Easy-to-Add Festive Look for your Home

The key is to go for a lasting look by playing with the right colours, being practical and not too fussy

With the festive season arriving, Subhashini Kumar, an interior expert and designer, offers tips to style one’s home for celebrations.

“The key is to go for a lasting look by playing with the right colours, being practical and not too fussy.
First of all, get your home completely cleaned along with the curtains, carpets and vases.
The seating in most living rooms today are in soft colours with a focus area. Expand this concept by adding a glowing copper/gold/brown shawl or even an old festive saree that has done its round strategically on the back rest.

But keep in simple so that the look is bold yet comfortable. After all, you need to maintain this décor for a few weeks and sitting on the sofa is a regular expectation.
Highlight a specific area in each room. The difference is that the focus is on the center table and the corners in the living room, the side tables and the corner table in the bedrooms.
Invest in the painted simple mudpots that you get in the markets. Buy them in different sizes and simply place them in strategic areas with small bamboos in cups or with old brass ware that you have in the house.


In case you have the budget, you can also invest in a good Kutch wall hanging which you can use every year.
Place aroma candles and burners, perforated glass jars, and antique vases to the festival mood in strategic places.

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The quickest way to perk up your house is to regularly place fresh flowers, that too mogras and common hibiscus in water-filled urlis or plates. They are not expensive, can be easily replaced and are available easily.


Lighting the candles and some incense sticks along with these tips should keep the house at its festive best. You can add rangolis and diyas on Diwali.


These bits should save you time in putting up and when taking down as well, as they simply mean folding the festive cloth and packing away the coloured pots for next year.



Festive discounts: What buyers should take note of

With Dussehra days away and Diwali not far behind, developers in Delhi-NCR want to make the most of the festive season

With Dussehra days away and Diwali not far behind, developers in Delhi-NCR want to make the most of it like every year, with most offering ‘festival discounts’ on booking or buying property.

Offers include cash discounts, easy payment plans, gold coins, cars, free membership of clubhouse, LED TVs, split-ACs and modular kitchens. So are these offers really worth the investment? What should buyers watch out for?

It is far better to ask for a price discount than go for goodies or the free club memberships” says Vinod Arora of Arora Property Consultants, a real estate adviser in Noida.

I bought a 2BHK in Sector 76 a couple of years ago in early November and agree on the deferred payment option that the developer gave,” says Arvind Juneja, who recently moved into the apartment. “The deferred EMI payment actually helped me as I could not have paid the EMI and the rent for the house simultaneously. The one caution I would recommend is that buyers ask for a clear justification and methodology adopted.

Buyers must keep in mind that there are primarily two reasons why developers announce discounts. It is either to sell unsold inventory or push sales for a project. In the first instance, the developer has already made his profit from the project. Buyers need to understand that though there is a discount being offered, it does not mean he will be given a value below the market price” says Subhash Kureja, a realty consultant with sales and marketing tie-ups with several developers in India.

“In the second case, when the developer advertises properties at say about 80 per cent of the actual price, the actual discount may be about 10 per cent, which is still a good buy,” says Kureja. “You no doubt get a discount but it may be for about 10 per cent.”

“What developers are banking on is the fact that buying during this period is considered auspicious. But what buyers need to realise is that these discounts are also probably one of the best to come given that the market is already conducive for a buy,” says Arora.  More >> Buy Property in Noida

Noida Sector 78

Sector 78: Noida’s new Prime Residential Address

Property prices have been consistently rising here since the last four years, giving good returns on investment

Sector 78 has become one of the fastest-developing locations in Noida along with Sector 119-120. Real Estates Property prices have been consistently rising here since the last four years, giving good returns on investment.

Work on the much-awaited Noida-Greater Noida Metro line has also started and once operational, trains will pass by the sector.
Sector 78 is becoming a prime residential address for many buyers. It is centrally located and near to commercial setups in Sector 62 and the Noida Expressway” says Suresh Kumar, a realtor from the area.


Another reason for the popularity of the sector is its easy connectivity to Delhi. The Noida City Center Metro Station is just 6 km away and auto-rickshaws are easily available. Also, it is located in the side of the main link road that starts from NH-24 and goes directly to Noida Expressway.


Unlike other upcoming sectors, Sector 78 has good infrastructure. The roads are in a good condition and there are markets and ATMs.
The sector recently got its first educational institution too – The Manthan School – a part of the Mahagun Moderne project. The nearest medical facilities are Prayag Hospital (5 km away) and Fortis Hospital (10 km).

“This is a very good locality for living in future as this is a central location of Noida. In future this locality will be fully developed for living,” says Shishir Gupta, another real estate agent.

The options out there
According to Happy Keys data, the locality offers a wide option of properties to end users as well as investors.

The average locality price is hovering between Rs 4,500-Rs 5,400. The final price for a 2BHK is expected to be in the range of about Rs 45-Rs 60 lakh for a unit size varying from 930-1,100 square feet.


Offerings include multi-storey apartment projects, with some independent houses, and a smattering of studio apartments, builder floors and service apartments. While some of them are ready for possession, others are nearing completion.
The top projects on offer are Sikka Group’s karmic Greens, Nimbus Group’s Hyde Park and Aditya Group’s Urban Casa.

Except for Urban Casa, which is expected to be ready by 2015-end or the start of 2016, others are expected to give possession by the end of 2016.