I am based in UK and an NRI. My brother has identified a property, which he feels I should invest in with him. Can I buy it as an NRI and what will be the tax implications on such a purchase, especially once I shift base back to India?
Manoj Sehgal, Chelsea
Yes, you could buy a property in India as an NRI along with your brother as long as it is not agricultural land or a farm house. If you decide to let this property out, the rental income from it will be subject to income tax, under the ‘income from house property’ head. The tax from such income will be applicable to you and your brother in the proportion of the ownership of the house. In case the rental income is below the taxable threshold, you are not required to file income tax return. You could claim deduction of municipal tax and standard deduction against rent received as applicable and also claim deduction on interest paid on a loan, if this property is purchased by taking a loan.
