Tag Archives: property management

NRI tax rate and TDS deduction on sale of property

NRIs are taxed at the same rate as non NRIs. If property is owned for more than two years, then they fall under the 20% tax slab. If it’s a short term sale (owned for less than 2 years) then NRIs are taxed at the applicable tax rate based on total income taxable in India.

NRIs should also be aware of TDS on sale of property. There’s a 22.8% TDS that the buyer has to deduct for a property owned for more than 2 years. For ownership of less than 2 years, buyer has to deduct TDS of 30%. This TDS can be reduced through a special request to the Income tax department.

Top 4 property management challenges in Chennai

Property management in Chennai, or India for that matter is a whole different ball game. First, the scope of PM is wider and critical than in other countries and second, the common PM functions are much more challenging.

The top 4 challenges for a property manager are

  • Preventing Property theft – The biggest challenge is property protection, we have to make sure that property is always owned by the true owner and someone doesn’t fake documents and sell it.
  • Finding problem-free tenants – Stories of tenants refusing to vacate is not that uncommon in Chennai. Finding good tenants involves a thorough background check and calls for having certain “vacatable-tenant” criterias.
  • Ensuring quality maintenance – When hiring someone for fixing repairs, you can’t just send in a contractor and hope the job will be done to satisfaction. First, you need to send a trusted handyman and on top of it, send a supervisor to monitor the quality of work. With labor shortages in Chennai, the quality of work is taking a huge hit.
  • Monitoring Land – Since many own land in India, PM services also include managing/monitoring of land to avoid encroachments, violations and other issues.

Although, the scope is wider and no shortage of challenges with common PM functions, Property management is still a rewarding job.