Skip to main content
/
General FAQ
What is BMRDA?

BMRDA is an Act to provide for the establishment of an authority for the purpose of planning, coordinating and supervising the proper and orderly development of the areas within the Bangalore Metropolitan Region and to provide for matters connected therewith.

General FAQ
What are the benefits of buying a BMRDA approved property?
  • Clear titles
  • Better price appreciation
  • Better re-sale value and re-sale formalities
  • Well within the city limits
  • Better infrastructure and other facilities and approach
  • Easy and simple registration process
General FAQ
What are the features of the location of Indium Lake Forest that make it a winning proposition?

Indium Lake Forest is located in Hejjala, and well connected to other areas of the city via Mysore road and NICE road. All the conveniences of the city within a short drive. With Metro-Reach 2, Bangalore-Mysore infrastructure Corridor, Commuter Rail System in the near future means growth for the region. 

General FAQ
What is the total area of the project?

Indium Lake Forest Picture Perfect Plotted development is the first phase of the 130 acres Integrated Township. Spread over 40 acres in  4 exclusive blocks, these plots are available in dimensions of 30×40, 30×50, 40×60 and 50×80 in feet.

General FAQ
How do I book My Plot in Indium Lake Forest?
  • Identify your Plot
  • Fill in the Booking Application Form (Form to be uploaded here)
  • Pay 10% as booking amount by the way of Cheque/DD
  • At the time of Signing the Agreement, pay 25% of the total sale consideration within 15 days from the date of booking
  • The balance amount must be paid within 30 days from the time of Sale Agreement
General FAQ
What are the amenities being offered in the project?
  • Concrete Roads
  • Concrete Drains
  • Underground cabling system
  • Overhead Water Tank
  • Street Light
  • Rain Water Harvesting
  • Sewage Treatment Plant
  • Amphitheatre
  • Spiritual Centre
  • Avenue Trees
  • Jogging Track
  • Landscape Parks
  • Playgrounds
  • Secured Gated entry and exit
General FAQ
How do I get Financial Assistance?

We have a tie up with 6 major banks

  • ICICI Bank
  • PNB HFL
  • DHFL
  • LIC HFL
  • Karnataka Bank
  • India Bulls
General FAQ
What are the steps to be taken after down payment?

At the time of down payment, a receipt and a letter of allotment would be issued confirming the plot number. Simultaneously, a copy of the ownership documents would also be provided to enable the customer to seek a legal opinion.

General FAQ
What is the meaning of a property’s market value and, guideline (circle value? How is its stamp duty decided?

Market Value: The price that a property can command in the open market is known as its market value.

Guideline value: This value is fixed by the authority from time to time. This is the minimum value at which a property can be registered. There is no restriction on registering the property at a higher level by paying additional stamp duty.

General FAQ
When will the project be completed? When is the possession date?

Indium Lake Forest development is underway and should be ready for delivery in about six months. You can avail of loans from leading financial institutions.

General FAQ
Why should we pay maintenance for plotted layout developments?

According to the Supreme Court order for every development there will be a maintenance charges. The maintenance will be charged for 2 years and it will be maintained in an Escrow account.
The layout maintenance includes Security, Park Maintenance, Electricity Maintenance, Water, STP Maintenance, and other basic maintenance of the layout. 

General FAQ
Who takes care of the maintenance ILF?

Indium Group will engage a maintenance team, initially for a period of 2 years, using the one- time deposits collected from the residents. The maintenance will be handed over to the residents once the Owners Association is formed. 

General FAQ
What are the measures being taken for security?

Indium Lake Forest development will have 24 hour security manning the entry and exit gates. 

General FAQ
What constitutes conclusion of sale of a property?

Registration of the sale deed after completing the agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of Registration of the Sale deed.

General FAQ
What are Income tax benefits of taking and repaying a housing loan under EMI Plan?

You will be eligible to claim both the interest and principal components of your repayment during the year. o Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house) Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments. You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same

/
NRI FAQ
Who is an NRI?

An Indian Citizen who holds a valid Indian passport and stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident Indian (NRI). Non-resident foreign citizens of Indian Origin are treated at par with non-resident Indians (NRI).

NRI FAQ
Who is considered a Person of Indian Origin (PIO) for investment in immovable properties?

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal) is deemed to be of Indian origin if:

  • He held an Indian passport at any time
  • He or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (Act No. 57 of 1955).
NRI FAQ
Who is an OCI?
  1. Any person of full age and capacity:
    1. Who is a citizen of another country, but was a citizen of India at the time of, or at any time after, the commencement of the constitution, or
    2. Who is a citizen of another country, but was eligible to become a citizen of India at the time of the commencement of the constitution, or
    3. Who is a citizen of another country, but belongs to a territory that became part of India after the 15th Day of August, 1947.
    4. Who is a child of such a citizen, or
  2. A person, who is minor child of a person mentioned in clause (a)

Provided that no person, who is or had been a citizen of Pakistan, Bangladesh shall be eligible for registration as an Overseas Citizen of India.

NRI FAQ
What is an OCB?

Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian `nationality or origin residing outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocable held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs as long as the ownership/beneficial interest held in them by NRIs continue to be at least 60%. 

NRI FAQ
What are the various facilities available to NRIs/OCBs?

NRIs/OCBs are granted the following facilities:

  • Maintenance of bank accounts in India
  • Investments in securities/shares of, and deposits with, Indian firms/companies
  • Investments in immovable properties in India
NRI FAQ
I am an NRI; Can I buy property in India?
NRI FAQ
What are the documents required for buying property?
  • Pan card (Permanent account number)
  • OCI/PIO card (In case of OCI/PIO)
  • Passport (In case of NRI)
  • Passport size photographs
  • Address proof
NRI FAQ
How can I pay for the property purchased?

Payment can be made by NRI/PIO out of:

  1. funds remitted to India through normal banking channels or
  2. funds held in NRE/FCNR (B)/NRO account maintained in India

No payment can be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically mentioned above.

NRI FAQ
What are the rules governing the repatriation of the proceeds of sale of immovable properties by NRI/PIO as prescribed by the Reserve Bank of India?
  1. If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels/by debit to NRE/FCNR (B) account, the amount to be repatriated should not exceed the amount paid for the property:  
    1. In foreign exchange received through normal banking channel or
    2. By debit to NRE account (foreign currency equivalent, as on the date of payment) or debit to FCNR (B) account.

Repatriation of sale proceeds of residential property purchased by NRI’s/PIO’s out of foreign exchange is restricted to not more than two such properties. Capital gains, if any, may be credited to the NRO account from where the NRI’s/PIO’s may repatriate an account up to USD one million, per financial year, as discussed below.

  1. If the property was acquired out of Rupee sources, NRI/PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance. The NRI/PIO may use this facility to remit capital gains, where the acquisition of the subject property was made by funds sourced by remittance through normal banking channels/by debit to NRE/FCNR (B) account.
NRI FAQ
Can I lease/rent my property in India even though I stay abroad?

An NRI can lease/rent out property that he owns in India. The rent proceeds can be credited to the NRE or NRO account. Rent proceeds received in these accounts can be freely repatriated. If you do not have an NRE or NRO account, the proceeds can also be directly remitted abroad but you would need an appropriate certificate from a chartered accountant certifying that all taxes have been duly paid.  

NRI FAQ
Can I sell my property?

Yes, an NRI can sell residential or commercial property in India. He can sell to:

  • A person resident in India (the definition of resident in this case will be as per FEMA)
  • An NRI
  • A Person of Indian Origin (PIO)

However, an NRI can sell agricultural or plantation land or a farm house only to a person who is resident in India and a citizen.

NRI FAQ
Is there a limit to the number of investments for acquiring commercial or residential properties in India?

Non Resident Indians are allowed to make real estate investments in India without any cap on the quantity or the number of investments. 

NRI FAQ
Can a NRI gift his residential/commercial property?

Yes, an NRI/PIO may gift residential/commercial property to a person resident in India or to an NRI or a PIO. However, a foreign national of non-Indian origin gifting to another foreign national needs prior approval of the Reserve Bank of India. 

NRI FAQ
Do NRIs or PIO require permission of Reserve Bank to acquire / transfer / Dispose immovable property in India for their residential use or by the way of Gift?

No. NRIs or PIO do not require any permission to acquire/transfer or dispose any immovable property in India or abroad for their residential use or by the way of Gift. However permission is required only in the case of transferring of agricultural or plantation property or farm house to another citizen of India NRI or PIO.

NRI FAQ
If the immovable property was acquired by way of gift by the NRI/PIO, can he repatriate abroad the funds from sale of such property?

The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorized Dealer and payment of applicable taxes.

NRI FAQ
In what manner should the purchase consideration for the immovable property be paid by PIOs under the general permission?

The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from any non-resident accounts maintained with banks in India.

NRI FAQ
Can such property be sold without the permission of Reserve Bank?

Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India. 

NRI FAQ
Can authorized dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?

Authorized dealers have been granted permission to grant loans to NRIs for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts. 

NRI FAQ
What are the guidelines for acquisition of agricultural land / plantation property / farmhouse by NRIs and foreign citizens of Indian origin?

All requests for acquisition of agricultural land/plantation property/farm house by any person resident outside India may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.

NRI FAQ
What is the Tax treatment for income generated from property selling or renting for NRI/ PIO/OCI?

The mere acquisition of property does not attract income tax. However, any income accruing from is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.

NRI FAQ
What is the capital gains tax applicable on sale of properties in India?

If you sell the property after 3 years from the date of purchase, you will be liable for long term capital gains tax of 20 per cent. The gains are calculated as the difference between sale value and indexed cost of purchase. Indexed cost of purchase is nothing by the cost of purchase adjusted to inflation. You can find the index here.

As an NRI, you will be subject to a TDS of 20 per cent on the capital gains.

If you sell the property within 3 years of purchase, you will be liable for short term capital gains tax at your respective tax slab. Short term capital gain is calculated as the difference between the sale value and the cost of purchase (no indexation benefit is available). You will be subject to a TDS of 30 per cent irrespective of your tax slab.

NRI FAQ
Does NRI/PIO/OCI have to file return in India for their property rental income and Capital Gains Tax?

The Government of India has granted general permission for NRI/PIO/OCI to buy property in India and they do not have to pay any taxes even while acquiring property in India. However, taxes have to be paid if they are selling this property. On sale of the property, the profit on sale shall be subject to capital gains. If they have held the property for less than or equal to 3 years after taking actual possession then the gains would be short term capital gains, which are to be included in their total income as tax as per the normal slab rates shall be payable and if the property has been held for more than 3 years then the resultant gain would be long term capital gains subject to 20% tax plus applicable cess.

NRI FAQ
How does the Double Taxation Avoidance Agreement work in the context of tax on income and Capital Gains tax paid in India by NRI?

India has DTAA’s with several countries which give a favorable tax treatment in respect of certain heads of income. However, in case of sale of immovable property, the DTAA with most countries provide that the capital gains will be taxed in the country where the immovable property is situated. Hence, the non-resident will be subject to tax in India on the capital gains which arise on the sale of immovable property in India. Letting of immovable property in India would be taxed in India under most tax treaties in view of the fact that the property is situated in India. 

NRI FAQ
Does Capital Gains Tax (CGT) apply to NRI/PIO/OCI?

Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.  

NRI FAQ
Can an NRI avail of any capital gain tax exemptions?

According to section 54 of the Income Tax Act, if you sell a residential property (after 3 years from date of purchase) and reinvest the proceeds into another residential property (within 2 years from date of sale), your gains will be exempt to the extent of the cost of new property. Suppose your capital gains is Rs.30 lakh and the new property is for Rs 20 lakh, then Rs 5 lakh will be treated as long term capital gains.

NRI FAQ
Where can I get more such related information?

For further information please visit the FAQ Section of RBI at www.rbi.org.in

Disclaimer:

These are the broad guidelines meant for ready reference with respect to acquisition and transfer of immovable property in India by NRI/PIO/OCI and in each case prospective buyer or seller of property in India must consult his/her own legal/finance/tax advisor and obtain suitable advise for their specific transaction. Indium Group assumes no legal liability for transactions entered into by placing reliance on these FAQs. These guidelines are subject to amendment by the regulatory authority. Indium Group assumes no responsibility for updating these FAQs.