NRIs have to pay tax on India incomes

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: Amitoj Sethi, (Director, www.deal4loans.com)

I own a flat in Mumbai. This flat has been let out. I stay in an accommodation provided by my employer, which is near the company I work for. Can I claim deduction for interest on borrowed capital and principal repayment of the housing loan in respect of the house, which has been let out? What would be the position if the property that I own were to be left vacant?

As the flat has been let out, you will be showing the rental income as ‘income from house property’. Under this head, you can claim a complete deduction on the interest paid to acquire the property as an expense. If you left the property vacant, you could claim the interest payable on the loan taken to buy the house up to a maximum of Rs 1,50,000 every year under Section 24(b) and the principal portion of the loan repaid to the bank under Section 80C (along with other contributions and investments) up to a maximum limit of Rs 1,00,000.

Can NRIs (non-resident Indians) purchase immovable property (flat/site) in India in the names of their parents, who are senior citizens and their income being less than taxable limit? After NRIs have paid tax on income in the countries they reside in and then send money through proper banking channels, can a property be registered in either parents’ names and get transferred later to their own names?

Yes, NRIs can purchase immovable property in India in the name of their parents. The property can be registered in either of their parents’ names. They can get properties transferred later to their names. They would need to pay the registration charges again. It would be a better option, if NRIs registered properties in either of their parents’ name with their own names as joint holders/nominees.

I am a non-resident Indian (NRI). I am trying to dispose of some property in India. I have been advised to get a PAN to pay tax before I repatriate balance amount. Is it required to get a PAN, as we do not normally pay income tax in India? If yes, how can I get the same?