By Accommodation Times News Services
FEMA violations like incorporation of companies in Gulf or in forign land and not brining the profits and turnover are next cuase of concern with government. Although officially investment in real estate is allowed with a cap of USD 2,00,000 per person per financial year, these transactions are looked upon to curb HAWALA and violation of Foreign Exchange Management Act.
Those who have purchased and invested in foreign properties like in Dubai, London, Australia and other part of the world are subjected to scrutiny. Many Benami transaction may be detected, sources in the Ministry of Finance says. Benami Properties not only in India but also on foriegn land are subject to investigation. Exchequer is watching fund flow to real estate and other securities which leads to acquisition of properties are under FEMA regulations.
Many foreign builders are marketing their projects in India who are subject to taxation in India. These people are not educating purchasers properly. All the tax, in form of TDS, has to be deducted and paid to treasury. In short, when TDS deducted to be paid in government, IT people will ask you as to whom you have paid and for what purpose. All foreign properties are also subject to capital gain taxes and needs to be declared in Income Tax returns.
Repatriation and fund flow needs to be carefully handled as FEMA norms are very very strict as far as foreign investments are concern.