The city is witnessing multiple infrastructure projects at the same time that will boost the connectivity and make it at par with other international cities. There are various projects like monorail, metro projects, sea-links and roadways being developed that will ensure great connectivity across different parts of the city.
Being the financial capital of the country, the commerce flourishes here that provides the advantage of state-of-the-art technology, uninterrupted electricity, trained manpower and connectivity. Further, with more companies setting up base here and more people migrating to the city, there is always a demand for real estate.
It's always a good idea to invest in Mumbai real estate market for great financial appreciation and also the sense of emotional security with an asset back in homeland. Whether the intention is to see real estate as an investment with opportunity for appreciation or to earn rental income or as a residential home; Mumbai's real estate checks all the boxes.
Besides, with MAHARERA registration mandatory for all projects now, investors can rest assured about quality checks and timely delivery.
At Rustomjee, we believe ideas form the cornerstones of buildings. Brick and mortar are merely the blocks that help in realising them. Ideas transform houses into homes and offices into innovation centres. These are thoughts that animate Rustomjee’s design principles. The same principles that inspire the company to invent, discover and deliver newer lifestyle solutions.
Since its inception in 1996, Rustomjee has heralded the rise of insightful design and eco-friendly construction technologies. Through its diverse projects, it has lived up to global benchmarks and set a few of its own.
Today, this commitment to excellence is converting millions of square feet of Mumbai, from Virar to Prabhadevi, into gated communities, premium townships, standalone landmarks & commercial spaces. Addresses that redefine the meaning of life in the city.
If you plan on taking a home loan, do keep in mind that it will lead to additional expenses over and above the cost of the home. For example, one has to pay stamp duty and registration charges to register your new home. Our stamp duty calculator will help you accurately determine the amount of stamp duty you will need to pay for your home, which would then help you calculate the amount required for your home loan.
The state government levies a fee called stamp duty for the purchase of any new property. This fee is paid towards registration of your property and you’ll be provided with a legal document validating your ownership of property. Until you have paid stamp duty, you are not considered as the legal owner of the property.
Typically, the cost of stamp duty is 5-7% of the property’s market value and registration charges are 1% of the property’s market value. These charges will be added to your cost, and you are required to count for these when applying for a home loan. The exact amount of stamp duty is determined by multiple factors such as:
• Actual market value of property
• Type of property
• Intended usage – residential or commercial
• Location of the property
• Age and gender of the property owner
Stamp duty and registration charges are not sanctioned by lenders in the approved home loan amount. This expense has to be borne by the buyer.
Yes, one can claim stamp duty as a tax deduction under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1,50,000.
No, stamp duty is not refundable.
Currently, stamp duty and GST are separate charges levied on the sale of a property and thus have no bearing on each other.
You can pay stamp duty via one of the following methods:
• Physical Stamp Paper:
This is the most popular method of paying stamp duty. One can purchase stamp paper from authorised sellers. Details with regards to the property registration or agreement are then written on this paper. Though, if the stamp duty charges are high, you will be required to purchase multiple stamp papers and thus it might become inconvenient.
• Franking:
You will need to go to an authorised franking agent who will stamp your property documents, certifying that the required stamp duty has been paid. This method has minimum criteria. Further, the agent will levy a franking charge, which is then deducted from the overall stamp duty to be paid. This service is offered to home buyers by most banks.
• E-stamping:
This is the most convenient way to pay stamp duty charges. Log on to the SHCIL (Stock Holding Corporation of India) website, select the state in which your property is located, complete the application form and submit it to a collected centre along with the required funds. Once the amount has been paid, you will get an e-stamp certificated with a Unique Identification Number (UIN).
Non-Resident Indian (NRI) is a citizen of India, who 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. Non-resident foreign citizens of Indian Origin are treated at par with Non-Resident Indians (NRIs).
Person of Indian Origin (PIO) (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who (a) at any time, held an Indian passport, or (b) who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
(a) Any person of full age and capacity:
Under the general permission granted by RBI, the following categories can freely purchase immovable property in India:
(a) Non-Resident Indian (NRI)- that is a citizen of India residing outside India
(b) Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
No. General Permission is available to purchase only a residential/commercial property in India to a person resident outside India who is a citizen of India (NRI) and who is a Person of Indian Origin (PIO).
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE / FCNR accounts maintained with banks in India. They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.
Yes, Reserve Bank has granted general permission for sale of such property. However, whether the property is purchased by another foreign citizen of Indian Origin, funds towards the purchase consideration should either be remitted to India or paid out of balance in NRE / FCNR accounts.
With respect to residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993 will have to be credited to the ordinary non-resident rupee account of the owner of the property.
Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. Applications for repatriation of sale proceeds will be considered, provided the sale takes place after three years from the date of final purchase deed from the date of payment of final instalment of consideration amount, whichever is later.
Yes. Reserve Bank has granted general permission to a foreign citizen of Indian Origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian Citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.
There is no restriction on the number of residential or commercial properties an NRI can own in India. However, the law restricts NRIs from purchasing any kind of agricultural land/ plantation property/ farm house in India.
Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.
The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it 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.
Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.
In case of sale of an immovable property, the Double Tax Avoidance Agreement (DTAA) with most countries state that capital gains will be taxed in the country where the immovable property is situated. Hence, if an NRI owns immovable property in India, then he/she will be subject to pay tax in India on the capital gains which arise on the sale of the property. Similarly, letting of immovable property in India would be taxed in India under most tax treaties.
Under the general permission granted by RBI, the following categories can freely purchase immovable property in India:
Since general permission is not available to NRI / PIO to acquire agricultural land/plantation property/farm house in India, such proposals will require specific approval from the Reserve Bank and the proposals are considered in consultation with the Government of India.
The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it 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.
The Government of India has granted general permission to NRI / PIO / OCI to buy property in India and they do not have to pay any taxes even while acquiring the property in India. However, taxes have to be paid if they are selling this property. Rental income earned is taxable in India, and they will have to obtain a PAN and file a return of the income if they have rented 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 and will be taxed in the normal bracket. However, if the property has been held for more than 3 years, then the resulting gain would be labeled as long term capital gains subject to 20% tax and some additional levy (cess).
India has DTAAs 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 located. 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 in India.
Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.
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:
An authorized dealer or a housing finance institution in India approved by the National Housing Bank may provide housing loan to a non-resident Indian or a person of Indian Origin residing outside India for acquisition of a residential accommodation in India, subject to the following conditions, namely:
Salaried individuals
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