Legal & Tax

Non-Resident Indians (NRIs) who live in other countries put a lot of money into India’s real estate market. The main reason people invest in Indian real estate is to secure their future or make good money. Radical reforms like the Real Estate (Development and Regulation) Act and the Goods and Services Tax (GST) are making it more likely than ever before that NRIs will live in a transparent and accountable environment. This is shown by the fact that the number of homes sold to NRIs is going up.

The aim of Prime Minister Narendra Modi to provide homes for everyone not only inspired confidence in those who had shied away from real estate investment due to high expenses, but it also inspired builders and developers. Pradhan Mantri Awas Yojana (PMAY) policy, which was introduced on June 1, 2015, aimed to provide urban and rural poor people with pucca affordable housing choices. The program included a wide range of incentive offers for developers to encourage effective construction.

On May 1, 2017, the Real Estate (Regulation and Development) Act, 2016 (RERA) went into effect all over the country. The goal of the Act is to make real estate transactions clear and to make the unregulated sector a more reliable way to invest. It also wants to make people more responsible, cut down on fraud, and keep the huge costs of transactions under control. The Central government made the RERA rules for the six Union Territories (UTs), and the States just copied them with a few changes.

Goods and Services Tax, which went into effect on July 1, 2017, is an indirect tax that replaced the cascading effect of multiple taxes levied by both the central and state governments. The new tax combines a number of old taxes into one. This includes the central excise tax, service tax, octroi tax, surcharges, Value Added Tax (VAT), and other local levies. This makes it easier to pay taxes and reduces the chance of being taxed twice.