FATCA prompting US NRIs to sell property in India
Many US-based non-resident Indians are considering selling their property in India – even at a discount – amid confusion and fear that a new information-sharing protocol may bring their assets, bank accounts, mutual funds and capital market investments in India under the scanner of US tax authorities.
India and the US recently agreed to implement the US Foreign Account Tax Compliance Act ( FATCA), a law aimed at ensuring that tax is paid on income generated from wealth parked overseas. Under the agreement, they would share information about citizens with assets in each other’s countries.
Unlike the case of mutual funds and bank accounts, it isn’t as easy for the Indian government to identify property held by NRIs in India. However, the NRIs anticipate that as systems become more robust, details of their assets will be shared with US authorities automatically and they want to act before that happens. Gurgaon-based online property portal BigDeals.in has received several enquiries over the past two months from NRI clients based in the US, chief executive officer Ashwin Chawwla said. “Some of these people are seeking more clarity on the issue. They are confused about what’s happening and how to deal with it,” said Chawwla. Read More….