What is Noida ?
NOIDA (New Okhla Industrial Development Authority) over the past 25 years, has emerged as a planned, integrated, modern residential City as well as industrial city that is well connected to Delhi through a network of smooth and wide roads, national highways and the ultra-modern DND flyover, offering inter-road connectivity to different parts of North India and also the Metro. NOIDA is one of the largest planned residential townships of Asia. It is a part of the National Capital Region (NCR) which is located in the state of Uttar Pradesh and is a suburb of Delhi. Today it stands as a well with uninterrupted power supply, clean and safe drinking water, unfailing telephony, and fine residential complexes in a peaceful environment with good security systems in place.
Where is it located?
Located at the doorstep of Delhi, NOIDA is only 14 Kms. away from Connaught Place and New Delhi Railway Station, both of which are in the heart of New Delhi. The 5.5 km. long, eight-lane NOIDA Toll Bridge across the river Yamuna connecting Maharani Bagh in Delhi to NOIDA has further reduced the distance, time and cost of commuting between Delhi and NOIDA. NOIDA has all the key advantages of Delhi without having its disadvantages. NOIDA has Ghaziabad Development Area to the North, separated by NH – 24 By-Pass, and the Greater Noida Area to the East separated by the River Hindon. It is flanked by the states of Delhi and Haryana in the West across the River Yamuna and the converging point of the rivers Yamuna and Hindon to the South.
What kind of educational facilities are available in Noida ?
NOIDA has given topmost priority to the development of Educational Institutions. Leading schools such as Amity International, Apeejay Intl, Lotus Valley, Army Public School, D.P.S, Khaitan, Cambridge, and Somerville provide school level education facilities to children from both NOIDA and Delhi. A number of Higher Education Institutions, Management and Technical abound in NOIDA. Incidentally, IIM Lucknow has a centre of operation in NOIDA.
COMMERCIAL
Simaltaneous with the creation of commercial canters in each sector and as a part of its planned and synchronous development, a full-fledged commercial complex… has been developed in sector-18. One can get everything from ordinary writing paper & stationery to haute couture, simple tools & tackles to electrical & electronic goods & appliances. There are large & spacious buildings here such as the newly built Center Stage Shopping Mall, Ocean Plaza, Sab Mall, and the newly open Great India Place. Apart from the reputed Radisson Chain of Hotels, Nirula and Mosaic Hotels, there are also a host of restaurants like McDonalds, Wimpy’s, Domino’s Pizza, Pizza Hut, Bamboo Shoots, Sizzling Heights, Yellow Chilly that serve a wide variety of haute cuisine suiting everyone’s palate.
NOIDA city center is being developed on a 99 hectare plot. The city center will have large number of facilities such as offices of trade and commerce, cultural centers, service industries, five star hotels, international standard restaurants, whole sale outlets, multiplexes, centers for socio-cultural activities, government/semi-government offices, public facilities, residential blocks & residence cum work centers, and premises for informal and unorganized sectors. On completion, the city center is expected to give a make over- a new identity to NOIDA.
PLANNED LAYOUT
NOIDA has been planned on the grid iron concept and employs state-of-the-art technology in Engineering and Urban Planning. Significantly, it conceptualizes the needs of a fast-developing city of the future. The Action Plan and approach compares well with international standards and is aimed at providing rapid momentum to the growth of the industrial sector both in the State of Uttar Pradesh and the Country.
The IT Industry in Noida
The IT industry is the backbone of NOIDA’s economy. Given the general boom in the IT industry in India, there is a possibility that many IT units will be set up in Noida provided the relevant infrastructure is available. NOIDA has the potential to become one of the leading centers of the IT industry on the lines of Bangalore and Hyderabad. The major IT companies in NOIDA are HCL, Adobe Systems, Freescale Semiconductor, Sopra Group, ATC Labs, Global Logic (previously Indus logic), CSC, EXL, Birlasoft, Impetus STMicroelectronics, MtronPTI, Xansa and Oracle and several others Grail Research (member of Monitor Group), a leading research services firm, also commenced its operations in early 2006 in Noida.
POWER SUPPLY AND TELECOM
NOIDA in the near future will have uninterrupted power supply. Telephony in NOIDA is digital and provided through optical fibre cable. It has a state-of-the art electronic exchange providing Integration Service Digital Network (ISDN) services facilitating high quality voice, data and image transfer; inter computer file transfer; high quality and speed fax transmission; video conferencing and a variety of phone plus services. NOIDA has inter-dialing facility with Delhi, Faridabad, Ghaziabad and other adjoining towns.
ROADS
The roads in NOIDA are smooth and wide for easy movement of traffic. NH 2, Link Road, Kondli Road, NOIDA-Greater NOIDA Expressway, the NOIDA-Agra-Mathura Expressway currently under construction and the eight-lane DND Toll bridge flyover provide additional ease and comfort to road-traffic into and out of the city of NOIDA. The NOIDA Authority maintains more than 400 Kms of internal roads and 125 Kms of boundary roads which make the intra-city-road-traffic comfortable.
ENVIRONMENT
With a view to keep the city green and clean and hence maintain the ecological balance, a project to develop parks in 165 acres of land comprising of 95 acres of green belt and 150 kms of road side has been initiated. Two sewage treatment plants are also being planned. These plants, once operational, will produce 70mn litres of water per day which will irrigate the green belt areas and parks. Underground water supply facilities are being created to provide water at lower rates for irrigation purposes. To maintain the ecological balance, the NOIDA Authority aims to involve NGOs and Government organizations in the development and the maintenance of green belts and parks. Besides raising public awareness towards environmental issues, this approach will give a new dimension and direction to the task.
What is the status on the infrastructure in Noida?
The NOIDA Authority has developed a number of green belts, gardens and parks to give further impetus to its pollution free environment. A modern, efficient and comprehensive infrastructure comprising of residential facilities, commercial areas, business centers, office complexes and recreational areas will complement the continuously developing industrial sectors within the NOIDA limits.
a) Wi-fi:
As you are aware that NOIDA and Greater NOIDA are fast developing into Hubs for the IT/IT enabled Industry. In order to give fillip to this sector and also to take IT to the masses, NOIDA and Greater NOIDA Authorities plan to introduce Wi-fi capability in the entire area of the twin cities. This would entail making all Schools, Colleges, Institutions, Hospitals, Hotels, Malls and other business establishments and also the NOIDA-Greater NOIDA Expressway Wi-fi enabled so as to provide complete wireless network facilities to students and professionals in the NOIDA/Greater NOIDA area. The introduction of Wi-fi capabilities in the Educational and other establishments will give them a quantum jump in terms of brand equity and functional capability as far as use of computer is concerned. Not more than 8-10 cities in the world have this capability and it would be a unique achievement for the twin cities of NOIDA and Greater NOIDA.
b) Metro Rail link
By 2009, the Delhi Metro Rail Corporation (DMRC) is expected to complete a vital link between Noida and Delhi during Phase II of its construction program. Commencing from New Ashok Nagar, Delhi, the 7- km corridor to Noida will go via Sector 18 and Lt. Vijayant Thapar Marg, MP Road No. 3 crossing, and turn at Golf Club Road to end at the Noida City Centre coming up in Sector 32. It will have stations at Naya Baans, Sector 15, HCL (Sector 3), Sector 18 Market, Noida Botanical Garden, Noida Golf Course and Noida City Centre.
c) Railway Link
The Northern Railway line from Boraki on the Delhi-Howrah route will go via Noida and Greater Noida to Tuglaqabad on the Delhi-Mathura route, which means in due course of time Noida will also have a railway link to Greater Noida which indicates further boost to the commercial sector.
d) Botanical Garden
The Botanical Garden of Indian Republic (BGIR) has been set up on 200 acres of prime land in Sector 38A by the Botanical Survey of India under the Ministry of Environment and Forests, Government of India. Its vast canvas will include such components as woodlands, arboreta, water bodies, display sections, experimental plots, and nurseries as well as civil structures like an administration-cum-herbarium-library complex, interpretation centre, reception counters, conservatories, parking complex and gazebos. The BGIR is mandated to conserve the endangered plants of the country and showcase its threatened plant diversity. It will also serve as a centre of excellence for conservation research and environmental education. By developing special innovative features, it is expected to become a major attraction for eco-tourism even as it develops into one of the most uniquely landscaped botanical gardens of modern times.
How is the law and order in Noida ?
NOIDA has impeccable law and order. To make this possible, a network of Police Posts, Police Station and round-the-clock Police Patrolling has been set up through out NOIDA, similar to the network in the National Capital Territory of Delhi.
How is the Climate of Noida ?
The climate at Noida is similar to that of Delhi. It tends to be comparatively cooler due to its green environment. Summer temperatures can go up to 45ºC. Winter temperatures range from a minimum of 3 degrees C to a maximum of around 20 – 22 degrees C.
FAQ’s for NRI
Who is a Non Resident Indian?
Under the Foreign Exchange Management Act of 1999, Non Resident Indians are defined as follows:
a) Non Resident Indian means an individual being a citizen of India or a person of Indian origin (not being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan) who is not a “resident”.
Explanation: A person is deemed to be of Indian origin if he/she or either of his/her parents or any of his/her grand parents was born in undivided India.
Do non-resident Indian citizens require permission of the Reserve Bank of India to acquire residential property in India? No.
In what manner should the purchase consideration for the residential immovable property be paid by Non-resident Indians holding Indian passport under the general permission?
Non-resident Indians holding Indian passport may pay the purchase consideration either by remittance of funds from abroad through normal banking channels or out of NRO Account or out of NRE Account or out of FCNR Account.
Q.What are the formalities required to be completed by NRIs for purchasing residential immovable property in India under the general permission?
The Indian Government has considerably eased the restrictions relating to investments by NRIs in residential property. There is virtually no restriction or approval required for an NRI to invest in properties in India from funds received in India through normal banking channels or held in Non-resident External (NRE) account/ Foreign Currency Non-resident (FCNR) account (B)/ Non-resident Ordinary (NRO) rupee account. However, investment in agricultural land/ plantation property/ farm house is currently prohibited. The recurring rental income earned on letting out of property is also freely repatriable.
Can such property be sold without the permission of Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another NRI, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
Can sale proceeds of such property if and when sold be repatriate out of India?
RBI has given general permission to a NRIs to repatriate the sale proceeds of Immovable property provided the following conditions are satisfied, namely:
(i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations;
(ii) the amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in Foreign Currency Non Resident account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where held in Non-Resident External account for acquisition of the property;
(iii) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
Can NRIs acquire or dispose of residential property by way of gift?
An NRI can freely sell or gift his/ her property to another Indian resident or NRI or person of Indian origin. However, there are certain restrictions imposed on repatriation of sale proceeds. In case of investments made from inward remittances or out of NRE account or FCNR account (B), the repatriation of sale proceeds is permitted only upto the amount of initial investment.
In case the repatriation is made out of balances held in NRO rupee account (balances include sale proceeds of house property), then an amount of USD one million per calendar year can be repatriated subject to the condition that the property is held for 10 years prior to the date of sale. If the property is not held for 10 years, then the proceeds should be kept in the NRO account/ eligible investments for the balance period.
One of the significant restrictions that is placed on repatriation is that the NRI can repatriate the sale proceeds only upto two residential properties. This could dampen the interest of NRIs in residential property, as investors would like to have free flow of capital while making such investments.
Can the properties (residential/commercial) be given on rent if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.
Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers/financial institutions providing housing finance?
Reserve Bank has granted general permission to authorized dealers and housing finance institutions in India, approved by National Housing Bank to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to conditions stipulated in relevant FEMA regulations.
Can NRIs give a Power of Attorney in favour of a person of his choice in India to complete loan formalities on his behalf?
Yes, an NRI may appoint a Power of Attorney in India to represent him in dealings in India. The Power of Attorney should be executed as per drafts provided by the housing finance company. The Power of Attorney can be given to any person of his choice in India.
Can the house occupied by NRIs be let out?
The RBI has granted general permission to NRI’s and foreign citizens of India origin, to let out their residential properties acquired for their bonafide residential purpose but which on account of their residence abroad, are not required for their immediate residential purpose. However, there are restrictions on the repatriation of the rental income earned from letting out of the property. The rental income is on a non-repatriation basis. Thus funds (rental income) must be credited to the NRO Account/Residential Accounts in India.
What is the income tax implication on house property income in India?
The income tax implications on house property income in India would be dependent on whether the property is kept vacant or let out. In case an NRI has only one property in India and if it is kept vacant, then it would be possible to say that there should not be any rental value for such property as the NRI was not able to occupy the same owing to his employment, business or profession carried out at any other place. However, if he owns two properties and both of them are kept vacant, then he is required to pay income tax on one of the properties as if the property had been let out. The tax laws do not provide clear guidance on how the rental value is to be determined for such property. It simply states that the annual rent should be the sum which the property might reasonably be expected to let from year to year. Though there are judicial precedents that are available which suggest adoption of municipal value/ fair rent, there could be some practical difficulties in ascertaining such value in the ever increasing rental market.
In case of let out properties, the actual rental income (after reducing the municipal taxes) would be subject to tax. The tax law allows a general deduction of 30% on the rental income and also allows for deduction towards interest subject to certain conditions.
Under Indian tax law, the payer is required to withhold tax on rental income paid to a non-resident @ 30.6% where the income of the non-resident does not exceed Rs. 10,00,000, otherwise at 33.66%. In case an NRI wishes to have a lower rate, then he has to apply to the tax authorities in a specified format for obtaining a certificate for deduction of tax at lower rate. The NRI would be required to file a return of income at the end of the year if the taxable income exceeds Rs 100,000.
In case the NRI is taxed in the home country on the rental income derived from India, then he could consider claiming exemption or tax credit in the home country based on the double tax treaty agreement entered into India with such country, if any.
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