Rich Indians Buying house in America & London

Wealthy Indians are buying the properties for second or third homes, who now account for 7.3 per cent of all sales in 5 million pounds-plus residential property market in London. The average property in this segment is a four-bedroom house, with a room for domestic help, used as a second home by rich Indians or their children studying in the city.

The temptation to buy a house in the US at bargain prices has lured a lot of foreign buyers world over. New York, Los Angeles (California) and Miami (Florida) the prime area for the buyers.

Cleaner environment, lush green open spaces, neatly maintained, full-service apartment buildings, orderly streets and highway traffic. For families with school kids, education until high school is free and compulsory, and enrollment in a neighbourhood school is for the asking. Property prices in places such as Florida, California and Texas are down as much as 30-50%.

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Non - resident Indians (NRI's) are investing in (SMEs) in India

Cash-rich Indian SME-owners investing in global assets, especially mineral resources such as coal and gold mines. Non- resident Indians are investing in well-established small and medium enterprises (SMEs) in India. These Indian investments are significant in size, some as much as USD 100 million per commitment, though they are often overshadowed by the multi-billion dollar international deals being done by Indian multi-national corporations,

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Surrender passport to get new Indian visa

Passport surrender rule for new visa: Indian government requesting and holding passports for over 40 days in order to issue an OCI-visa.

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Taxable Property

> You are required to pay tax on rental income from the second house even if it is lying vacant.

> If a person owns more than one house and it is vacant, its value is added while calculating the owner's wealth.

> A 1% wealth tax is payable on the amount exceeding Rs 30 lakh.

> Commercial property is not included while calculating the wealth of a person.

> The interest paid on a loan taken to purchase commercial property is also eligible for tax deduction.

> Commercial space usually fetches a higher rent than residential property. It is also possible to take a loan against this rental income.

> The rental income from commercial property is eligible for 30% standard deduction as in the case of residential property.

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Direct Tax Code (DTC) Progress

Allaying apprehensions about the proposed Direct Tax Code (DTC), Union finance minister Pranab Mukherjee on Saturday assured an audience of nearly 1,300 overseas Indians that the regulations were still being formulated and there was no firm decision yet. Clarifying that no decision has been taken in terms of DTC as the bill is currently being scrutinized by a parliamentary standing committee, Mukherjee said it is a wrong perception that an NRI becomes an Indian resident for the purpose of taxation if he stays in India for 60 days in a financial year.

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NRIs to Get 10 percent of industrial plots Reserved in Haryana, Great Investment option

There's good news for NRIs wanting to invest in Haryana. The state has decided to reserve up to 10 percent of industrial plots or sheds for NRIs and persons of Indian origin (PIO).

Industrial units with 33 percent or more foreign direct investment (FDI) can also avail the benefit of reservation of industrial plots, a spokesperson of the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) said here Monday.

"In case of NRI plots, the entire amount towards the price of the plot would have to be remitted through the Non-resident External Rupee (NRE) Account of the applicant or in remittances from abroad or foreign exchange," he said.

Haryana has crafted success in industrial investment in the last three to four decades. The state's industrial base in Gurgaon, Manesar, Faridabad, Panipat, Kundli and other places is well-known. Some big names like Maruti-Suzuki, Hero Honda and several others have invested in the state.

In case of FDI projects, at least 33 percent of the project cost should come from the FDI route.

However, the 10 percent limit would not preclude allotment of plots in the FDI category as part of the general scheme of allotment, he added.

The spokesperson said preferential allotment of up to two percent of industrial plots or sheds in each industrial estate had been prescribed by the government people with disabilities.

He stated that while allotting plots, preference would be accorded to prestigious projects involving capital investment of Rs.10 crore, Rs.20 crore and Rs.30 crore and above.

Ex-servicemen, women entrepreneurs, unemployed engineering graduates, polytechnic, ITI trained candidates and new entrepreneurs who display exceptional entrepreneurial skills would also be given preference in allotment, he added.

NRIs and applicants of other categories will apply to the HSIIDC for allotment of industrial plots.

Haryana has planned industrial model townships (IMT) and industrial estates in several places across the state, especially in the national capital region (NCR) of New Delhi.

The new industrial estates are located in Panchkula, Bawal, Bahadurgarh, Rai and Kundli while IMTs are coming up at Manesar and Rohtak.

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1 Tonne of Gold Sold last Week Gold traders stock-up after Gold prices Fall

India's gold buying continued on Monday afternoon after prices fell 1.8 percent in the previous week, as traders sought to stock in anticipation of the upcoming harvest festival and on wedding demand, dealers said.

"The good response has been continuing from last week. I sold about 1 tonne of gold last week," said a dealer with a state-run bullion importing bank in Mumbai.

The most-active gold for February delivery was trading 0.38 percent higher at 20,450 rupees per 10 grams at 12:59 p.m., still down 2.3 percent from the record high of 20,924 rupees struck last month.

International spot gold edged higher, after losing 3.5 percent in the first week of 2011, as fears over the euro zone debt crisis buoyed appetite for bullion, and bargain hunting in the physical market provided support.

"I am expecting good sales to continue today as well at $1,370-1,375 (an ounce)," said the dealer with the state-run bank. Weddings in India, the world's largest consumer of yellow metal, will re-start next month.

Gold traders also awaited direction from the rupee, which plays an important role in determining the landed cost of the dollar-denominated yellow metal.

The Indian rupee held its ground, supported by firm Asian peers and a sharp drop in the country's trade deficit in December.

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