Tax Saving Tricks for NRI Property Management

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Tax Saving Tricks for NRI Property Management

• Movabl e pro perty, l ike hous e, shop, bunga l ow and

apa rt me nt .

• Agr i cu l tura l l and, farmhous e a nd p l a ntati on prope rty

are d i s a l l owed to own.

In which property NRIs can invest?

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• Unlimited number of commercial and

residential property.

How many properties NRIs can purchase?

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Impact on taxation for owing multiple properties by NRIs

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• A l t h o u g h a n N R I c a n o w n m u l ti p l e p ro p e r ti e s ye t o n l y o n e

ca n b e c l a i m e d s e l f - o c c u p i e d .

• O t h e r p r o p e r ti e s ’ o w n e rs h i p c a n ’ t b e c l a i m e d b u t c a n b e

u s e d fo r s e l f.

• I f t h e p r o p e r t y i s r e n t e d o u t , i t s re nt a l i n c o m e w i l l b e

t a xa b l e .

What Indian Income Tax Act states?

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• Inher i ted property i s cons idered as a source of

renta l income.

• I t ’s not essential that you rent i t out but i t ’ l l be

cons idered so.

• Incom e tax act i s appl icable .

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

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Tax Savings

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• 1 / 3 o f t h e to ta l re n ta l a m o u n t c a n b e c u t o u t a s

m a in te n a n c e .

• M a in te n a n c e c h a rge c a n b e 3 0 % o f t h e re nt .

• I f p a id p ro p e r t y ta x , yo u c a n a s k fo r ta x d e d u c ti o n .

• I n te re st p a id o n p ro p e r t y lo a n c a n b e d e d u c ti b le o n ta x .

Tricks to save Tax on rental income

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• Cla im can be m ade in fu l l for EMI of 2nd home’s loan.

• Ful l deduction on tax can be c la imed for pay ing

interest on 2nd hom e’s loan ( INR 1.5 lakh can be

ca l led for tax deduction to pay interest on 1st home’s

loan) .

Tax Saving tricks on second property

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THANK YOU

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