Second Home tax
 

Has anyone heard the rumour about the Indian Government imposing a tax on second homes which would have to be paid by anyone owning a home here in Goa? Thanks:thumbdown:

Re: Second Home tax
 

Yes, but not that it would apply to foreigners?

Assumed it was aimed at locals building/buying extra properties to rent out, and out-of-state Indians buying holiday homes?

However, with the purge against foreigners it would not surprise me if they twisted it to suit.

http://timesofindia.indiatimes.com/c...ow/6985494.cms

However, at present it seems to be linked to the Regional Plan 2021 and there are unlikely to be any foreign "home owners" left by then?


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Re: Second Home tax
 

I read the article and thought they would have implementation problems (this of course is normal - policies are implemented and then they are delayed while 'the modalities are sorted out').
A few points occur to me:
1) this is only Goa not India
2) whatever the dreams of the 'special status' lobby this would have to apply to all properties in the state - any attempt to exempt Goans would open up endless complexities of definition and anyway would fall foul of the Indian Constitution.
3) a substantial majority of empty properties in Goa (unoccupied or occasionally occupied) are owned by Goans.
4) I for one would be quite happy to pay additional house tax - the existing levels are ludicrously inadequate - I would however want some guarantee that the money would be used for the upkeep of the area served by the Panchyat, and it would not be unreasonable to expect some say in how it is spent (no taxation without representation).

AndyD 8-)#

Re: Second Home tax
 

Where did your concept of exempting Goans come from?


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Re: Second Home tax
 

you are a foreigner fighting to have ownership of your goa home legally recognised and you want to pay higher house tax already!

have you ever noticed in the ledgers at the panchayat all the blank columns cause the locals generally dont pay house tax?

then you want representation regards your taxation as if goa had suddenly embraced multiculturalism and you might earn the right to vote on anything more important than with your feet which bar/rest to spend your foreign exchange in!

guarantees about expenditure? you don't get jackshit guarantee on anything, except maybe a local family does at election time (ie with a bribe), or maybe that would be the guarantee that your presence is not welcome in goa dourahda for more than any two weeks and only while you continue to make goans rich, and you will be fleeced at every opportunity and your property taken away from you by hook or by crook

Re: Second Home tax
 

Well that cheered us all up! :blink:

Re: Second Home tax
 

What about those who have sold, taken their money out of India, and not paid any TAX! There are quite a few.

Re: Second Home tax
 

Two people have passed away here, one registered deeds, the other not, and neither of the children can sell the property and receive the money!
Why is this when a Will has been made in Goa.:frown:

Re: Second Home tax
 

Remy, if you read "afaiknow"'s post in direct contrast to Andy's post where he appears to be volunteering various payments, it makes a lot of sense?
There is too much wishful thinking going on with relation to a foreigners rights to proprty in Z-o-S at present, and this post from "afaiknow"' crystallises it somewhat?


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Re: Second Home tax
 

Thanks J5. It does seem a difficult proposal to implement but I am sure if it means raising more money for the local council then they will find a way. Its just a pity that they do not raise sufficient local taxes at the moment to pay for all the infrastructure needed. I live in a village in Spain where my local tax is 60 euros a year and for that we get daily rubbish collection; street lighting; street cleaning; local policemen ( 2, one young and one large rotund); a library and a marvellous Town Hall. Es Increible!

Re: Second Home tax
 

it came from reading between the lines - they have even had to make promises that Goans won't have to pay tolls on the new highways. do you really think they can sell the idea if it mostly affects Goans?

AndyD 8-)#

Re: Second Home tax
 

Yes, why is it?
I assume they are trying to do something about it?
There is in fact no wriggle room at all in FEMA when it comes to inheritance (see the RBI FAQ) - a foreigner can inherit property from a resident or non-resident, foreigner or Indian citizen.

That's only the law of course....

AndyD 8-)#

Re: Second Home tax
 

well at least this thread has woken some of you up <g>.

AndyD 8-)#

Re: Second Home tax
 

Really??? Have never looked into this in much detail i have to admit.

Found This Though;

Technically, any individual is entitled to receive, including by inheritance, property situated in India regardless of his residency or citizenship. But – and here is the problem - the transfer of ownership, and the holding of the property, must adhere to the Foreign Exchange Management Act (FEMA).

According to FEMA Regulation 2000, a non-resident who is a citizen of India can only transfer properties to (a) a resident of India, (b) a citizen but not a resident, and (c) a non-resident of Indian origin. Non-residents of Indian origin (i.e., not citizens) may in contrast only transfer properties to residents. Non-Indians may only receive Indian properties if they are residents of India.

No inheritance or gift tax is levied in India. However, the recipient of assets is subject to wealth tax.

Wealth Tax
Net wealth tax is levied at 1% on a taxpayer’s net assets if it exceeds INR1,500,000 (US$30,881). Net assets are computed by deducting debts relating to the properties against their aggregate value. The income tax authorities are generally responsible for assessing the property value. Self assessment is also possible but there are interests and penalties for defaults.


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IF Im reading this right then on my death, i can only leave my property to a 'resident of India'.
So my kids would need to be residents which is practically impossible now due to the 180 day rule.....is it not?

Re: Second Home tax
 

FEMA 13
Foreign nationals of non-Indian origin resident outside India are not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.

RBI FAQ:
Q.10. Whether a non-resident can inherit immovable property in India?
A.10. Yes, a person resident outside India i.e.
i) an NRI
ii) a PIO and
iii) a foreign national of non-Indian origin
can inherit and hold immovable property in India from a person who was resident in India.
However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank.

Q.11. From whom can the non-resident inherit immovable property?
A.11. A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from

(a) a person resident in India.
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.

AndyD 8-)#