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Assured means CONTRACTUAL — the obligation is owed by the developer or its SPV, not by Wyndham, Clarks, Royal Orchid or any bank. There is no deposit insurance and no regulator standing behind it. Capital is at risk.
A branded resort investment is simple in outline. You buy a villa or suite inside a 5-star resort and receive a registered sale deed in your own name. A hotel brand — Wyndham, Trademark by Wyndham, Dolce by Wyndham, Regenta by Royal Orchid, Clarks — operates the resort. You lease your unit back and receive a contractual annual rent, commonly 8-10%, plus a fixed number of owner stay-nights each year.
The complications are all in the second layer, and for an NRI or OCI buyer there are more of them: which account the money leaves from, how the rent is taxed and withheld before you see it, whether your home country gives you credit for that tax, how you get the money out, what a buyer must withhold when you eventually sell, and — the question almost nobody asks first — which legal entity actually signs the assured-return covenant.
This page answers all of it in one place. Two things to fix in your head before you read on. First, these units are NOT loan-eligible; no Indian bank or housing finance company lends against them, so plan for the full amount in cash plus a cost stack of roughly 7-10% over base price without GST, or roughly 19-22% with GST on an under-construction unit. Second, the headline rate is not what you keep — the correct net-of-tax arithmetic is set out in section three, and it is the reason we will sometimes tell you not to buy.
ResortWealth is an independent advisor, not a developer. We are paid a channel-partner commission by the developer on a completed booking. We have written this page assuming you would rather know the awkward parts now than after registration. Slab-dependent figures are FY 2025-26, illustrative. Every tax position here should be confirmed with a qualified adviser in your country of residence and a CA in India.
Yes. Under FEMA and the Foreign Exchange Management (Non-debt Instruments) Rules 2019, a Non-Resident Indian or an Overseas Citizen of India may acquire any immovable property in India other than agricultural land, plantation property or a farmhouse. No RBI approval is needed and no special permission is required. A resort villa or suite is built immovable property in a commercially operated hospitality project, so it sits squarely inside what is permitted.
The exclusion is worth taking seriously rather than nodding at, because two of the properties in this category sit in plantation country. A project in Coorg or Sakleshpur may occupy land that was coffee or areca plantation before development. What matters is the classification of the land at the time you acquire it: it must have been converted to non-agricultural or commercial use, with the conversion order on file, before the sale deed is executed. Ask for the conversion order and the revenue records, not a verbal assurance. The same discipline applies in Jawai, where much of the surrounding land is agricultural.
A separate point that pays off later: several of these units are legally classified as commercial or hospitality units rather than residential dwellings. That classification is what puts them outside the two-property repatriation restriction discussed further down. Get the classification confirmed in writing before you pay, because the sale deed language, the GST treatment and the repatriation route all follow from it.
Two narrower cases. Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Hong Kong, Macau or the DPRK — whatever their residency — need prior RBI approval to acquire immovable property in India, and an OCI card does not remove that requirement. And a person who is a resident outside India but not an NRI or OCI cannot buy at all, other than by inheritance or by a lease not exceeding five years.
Confirm your own eligibility with a qualified adviser in your country of residence and a CA in India before you release funds.
Pay by inward remittance through normal banking channels, or from an NRE, FCNR(B) or NRO account held with an authorised dealer bank in India. You cannot pay in foreign currency cash, by traveller's cheque, or from a resident savings account you have not yet redesignated. That last one catches people who moved abroad recently and never converted their old resident account to NRO — do that first.
The choice matters less for the purchase than for the exit, because repatriability follows the funding route. Money that arrives as inward remittance, or comes out of an NRE or FCNR(B) balance, carries a repatriable character. Money paid out of NRO funds of local origin — rent from an old flat, a share of a family sale, Indian salary — does not, and later comes out through the USD 1 million per financial year capital window instead.
This is where the most common piece of bad advice in the market appears. Rule 21(2) of the NDI Rules 2019 is frequently cited as limiting an NRI to repatriating the sale proceeds of two properties. That restriction applies to RESIDENTIAL property ONLY. Commercial property is unrestricted. What actually governs your position is the funding route and the FIRC trail, not a property count. Ask the developer's bank for a Foreign Inward Remittance Certificate for every single tranche, with the correct purpose code, and keep them with the sale deed. Ten years from now that file is what makes repatriation a form-filling exercise instead of an argument.
On the practical side, FCNR(B) suits a buyer who wants to hold dollars or pounds until a construction-linked instalment falls due and avoid interim rupee exposure. NRE suits a buyer already holding rupees repatriably. NRO is the account rent will be credited to in any case, because income arising in India goes there.
And to say it plainly once more: these units are NOT loan-eligible. There is no home loan, no NRI mortgage and no bank-funded 80:20 plan for a resort suite. Confirm the funding route with a CA in India.
In most of these structures the rent is taxed as Income from House Property. The computation runs: gross annual value (the rent receivable) less municipal taxes actually paid by you gives Net Annual Value; from NAV you deduct 30% as the standard deduction under Section 24(a); interest on borrowed capital would also be deductible, but there is no loan here. The balance is added to your total Indian income and taxed at slab rates. An NRI gets the basic exemption limit, so if this is your only Indian income the effective rate can be well below the headline.
Note the precision on Section 24(a): the 30% is applied to Net Annual Value, meaning gross rent less municipal taxes paid — not to gross rent. On a small municipal bill the difference is minor; on a large one it is not.
Because only 70% of NAV is taxed, the correct formula is: net yield = headline rate x (1 - 0.7 x effective tax rate). At a 31.2% effective rate (30% slab plus 4% cess, FY 2025-26, illustrative, ignoring surcharge), an 8% property nets about 6.25%, a 9% property about 7.03%, and a 10% property about 7.8%. Never pair a 10% headline with the 8% property's 6.25% net — they are different assets with different answers.
A worked example, FY 2025-26, illustrative. Regenta Pushkar at roughly Rs 75 lakh base with an 8% contractual return produces Rs 6,00,000 gross. Deduct, say, Rs 15,000 of municipal tax to get NAV of Rs 5,85,000; the 30% deduction is Rs 1,75,500, leaving Rs 4,09,500 taxable; at 31.2% the tax is about Rs 1,27,800. Subtract both that tax and the Rs 15,000 of municipal tax you actually paid, and you keep roughly Rs 4,57,000. That is 6.29% on base price — but about 5.2% measured against an all-in cost of roughly Rs 91 lakh if GST applied. Yield quoted on base price always flatters.
One caveat that must travel with every figure on this page: income characterisation is not automatic. Depending on the lease terms, the services bundled in and how the arrangement is drafted, the revenue authorities may treat the receipt as business income or income from other sources rather than house property — in which case the 30% deduction is unavailable and the arithmetic changes. This risk is highest in revenue-share years, such as the Clarks Pushkar structure where an 8% contractual return for five years converts into a 50% revenue share thereafter. Confirm with a qualified adviser in your country of residence and a CA in India.
When rent is paid to a non-resident, the payer must deduct tax at source under Section 195 at the rates in force, plus applicable surcharge and health and education cess. Where the 30% slab applies that lands around 31.2%, and higher once surcharge bites at larger income levels. Two consequences follow that materially affect your cash flow.
First, the deduction is made on gross rent, not on the post-Section-24(a) figure. So you are over-withheld all year on income that is only 70% taxable, and you recover the excess by filing an Indian income tax return. Excess-TDS refunds carry interest under Section 244A — this is not an interest-free loan to the government, though the interest rate is modest and the money is still out of your hands for months.
Second, there is a fix, and most buyers never use it. Section 197 allows you to apply in Form 13 on the TRACES portal for a certificate authorising lower or nil deduction. The assessing officer looks at your projected income and computes a rate reflecting the 30% deduction and your actual slab position. Granted, it typically brings withholding down close to your true effective rate, converting a year-long refund cycle into monthly cash in hand. Apply early in the financial year, expect to supply the lease, the payment history, past returns and a computation, and renew annually. Give the certificate to the operator's finance team before the first payout of the year.
A PAN is effectively necessary. Without one, Section 206AA applies tax at 20% or the rate in force, whichever is higher, and you cannot file a return or apply under Section 197 at all. Do not let anyone point you to Rule 37BC as a workaround: that relief covers interest, royalty, fees for technical services, dividends and transfer of capital assets, and it does NOT cover rental income. For rent, no PAN means 206AA.
Practical hygiene: collect Form 16A quarterly, reconcile against Form 26AS and the Annual Information Statement, and chase any mismatch immediately. Confirm all of this with a CA in India.
India taxes this rent first, and it is entitled to. Under essentially every Double Taxation Avoidance Agreement India has signed, income from immovable property is taxable in the country where the property is situated. Your country of residence may then tax the same income again, and relieve the double tax by giving you a foreign tax credit for the Indian tax paid.
The crucial point: a foreign tax credit is not a refund of Indian tax, and it is capped at the home-country tax on the same income. If India collects 31.2% and your home jurisdiction would have charged 20% on that rent, you claim a credit up to the 20% and the excess 11.2% is generally lost — some countries allow a carry-forward, many do not. Your all-in tax cost is therefore the higher of the two rates, not the lower.
For residents of the UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, where there is no personal income tax on this income, there is nothing to credit the Indian tax against. Indian tax is a final, unrelieved cost. Gulf-based buyers should therefore run every yield calculation net of Indian tax and treat the net figure — 6.25% on an 8% property, 7.8% on a 10% property — as the honest number.
US persons claim the credit on Form 1116 and remain taxable on worldwide income regardless of where they live. UK residents report under the property income rules with credit relief. Canada, Australia and Singapore each have their own mechanics. In all of them a mismatch of tax years complicates things: India runs April to March, most of the rest run to December, so the Indian tax credited in a given foreign year rarely lines up cleanly with the income reported.
Paperwork you will need: a Tax Residency Certificate from your home authority, Form 10F filed electronically on the Indian portal, and Form 16A as proof of Indian deduction. Confirm the treatment with a qualified adviser in your country of residence and a CA in India.
Rent is current income, and current income is repatriable from an NRO account WITHOUT the USD 1 million per financial year cap. This is the correction that matters most, because the market routinely tells NRI buyers the opposite. The USD 1 million per financial year limit — roughly Rs 8.5-9 crore at present rates — applies to CAPITAL items: sale proceeds, inheritance, gifts, and NRO balances of non-repatriable local origin. It does not restrict your rent.
What the bank does require for rent is evidence that Indian tax has been discharged. That means Form 15CB, a certificate from a chartered accountant confirming the taxability and the tax deducted or paid, and Form 15CA filed by you on the income tax portal — Part C where a 15CB is required. Your bank will also want Form A2 with the right purpose code for rental income. Many banks will operate this on a periodic basis rather than certifying each transfer; ask yours to set up the arrangement before the first payout, and budget for the CA's recurring fee, which matters more on a Rs 71 lakh unit than a Rs 1.31 crore one.
On the capital side, the picture is cleaner than most buyers expect. Because these units are commercial or hospitality classified, the residential-only two-property restriction in Rule 21(2) does not apply. Repatriation of sale proceeds turns on the funding route: money that came in as inward remittance, or from NRE or FCNR(B), returns through the repatriable route, and the FIRC file is your evidence. Proceeds attributable to NRO funds of local origin go through the USD 1 million window, which for a single resort unit is ample headroom.
Keep one physical and one cloud folder containing: the sale deed, the registered lease, every FIRC, the full payment schedule with bank references, tax challans, Form 16A for every year, and each 15CA/15CB pair. Confirm the route with a CA in India before you initiate the first transfer.
Two separate tax events happen at sale, and NRI sellers are frequently blindsided by the second.
Your own liability first. Immovable property held for more than 24 months produces long-term capital gains, currently taxed at 12.5% without indexation, plus surcharge and cess. Held for 24 months or less, the gain is short-term and taxed at your slab rate. The relief allowing a 20%-with-indexation alternative for pre-23 July 2024 acquisitions was framed for resident sellers; non-residents should not assume access to it. Exemptions under Section 54F (reinvestment in a residential house) or Section 54EC (specified bonds within six months, capped at Rs 50 lakh) may be available depending on facts.
Now the part that shapes the transaction. When the seller is a non-resident, the buyer withholds under Section 195 on the ENTIRE sale consideration at long-term capital gains rates plus surcharge and cess — not the 1% under Section 194-IA that applies when the seller is resident. The buyer must also obtain a TAN and file Form 27Q. For a resident buyer purchasing a Rs 1 crore suite, that means locking up about Rs 13 lakh and taking on compliance they have never done before. It is a genuine deterrent, and the standard remedy is for you to obtain a Section 197 lower-deduction certificate before signing, computed on your actual gain rather than the gross price. Start that application three to four months ahead of closing.
Note the mirror image on your purchase today: because the developer is resident, you as buyer deduct 1% under Section 194-IA and file Form 26QB. That 1% is disapplied only where BOTH the consideration and the stamp duty value are below Rs 50 lakh — which none of these properties are, including Clarks Pushkar at roughly Rs 60-65 lakh.
The larger exit risk is not tax at all. The resale market for a resort suite is thin, buyers are few, and any developer buy-back promise is only as good as the SPV that made it. Assume a long hold. Confirm with a CA in India.
GST is the single biggest swing in your cost stack, and it turns entirely on construction stage. On an under-construction non-residential unit, GST is roughly 12% effective on the purchase consideration. On a completed unit with an occupancy or completion certificate already issued, the sale of built immovable property is neither a supply of goods nor of services, so GST is nil. Nothing else about the two transactions differs — the same suite, the same brand, the same lease — but the cash outlay differs by around a tenth of the price.
State your cost stack both ways and never let a brochure blend them. Without GST, expect roughly 7-10% on top of base price: stamp duty and registration (state-dependent, and several states offer a concession where a woman is a co-owner), legal and title diligence, documentation and administrative charges, and the corpus or club-type deposits some projects levy. With GST on an under-construction unit, the stack lands at roughly 19-22%. On a Rs 1.10 crore Wyndham Grand Jaipur Amer unit that is a difference of well over Rs 12 lakh — and it is the denominator in every yield calculation you run.
Input tax credit on the GST you pay at purchase is generally not available to an individual owner in this structure. Assume it is a sunk cost unless a CA tells you otherwise on your specific facts.
On the rent side there is good news that the market has been slow to absorb. Since 10 October 2024, renting of immovable property other than a residential dwelling by an UNREGISTERED person to a REGISTERED person falls under REVERSE CHARGE — the registered operator or SPV that leases your unit discharges the GST itself. An unregistered NRI owner does not need to register and does not bear 18% on the rent. Anyone advising you to take voluntary registration so you can charge GST on the lease is working from the pre-October-2024 position.
If you already hold a GST registration in India for other reasons, forward charge applies to you instead and your invoicing obligations change — tell your CA. Confirm with a CA in India.
Most NRI buyers never set foot in the registrar's office, and that is fine if the instruments are executed correctly.
A power of attorney executed outside India should be signed either before an Indian consulate officer (consular attestation) or before a local notary followed by an apostille if your country is a Hague Convention signatory. It then has to be stamped in India, and here is the trap: under Section 18 of the Indian Stamp Act, an instrument executed out of India must be stamped within three months of when it is FIRST RECEIVED IN INDIA — the clock runs from first receipt in the country, not from the date of execution. Courier it deliberately, record the date of receipt, and get it adjudicated and stamped before the Collector of Stamps within the window. Several states additionally require registration of a POA that authorises presenting documents for registration or dealing with immovable property; check the specific state, because Rajasthan, Karnataka and Goa do not treat this identically.
Draft the POA narrowly. Name the specific project and unit. Name one attorney and one substitute. Exclude power to sell, mortgage, gift or create any charge. Include an expiry date and an express revocation mechanism. A general POA in favour of a developer's employee is a bad idea in every scenario.
On succession, make an Indian will covering your Indian assets, separate from your home-country will, and make sure neither revokes the other by accident — a clause in each confirming it deals only with assets in that jurisdiction prevents an expensive mess. Registration of a will is optional in India but makes probate materially smoother, and probate is where NRI families lose the most time. Nomination is not succession: a nominee holds for the legal heirs, nothing more.
If you die intestate, succession follows your personal law and your heirs may need a succession certificate or probate from an Indian court, during which rent can be frozen for a year or longer. Joint holding with a spouse helps but has its own FEMA and tax consequences. Keep the sale deed, lease, FIRCs and PAN details somewhere your family can actually find them. Confirm with a CA in India and an Indian property lawyer.
Start with the question almost nobody asks first: which legal entity signs the assured-return covenant? In practice it is the developer or a project-specific SPV. It is not Wyndham, not Clarks, not Royal Orchid, not KAMAH, and not any bank. The brand signs a hotel management or franchise agreement with the developer; it operates the resort, protects its standards and takes a fee. It has no contractual relationship with you and no liability for your 8-10%. Write down the exact registered name of the covenanting entity and treat that name as the investment.
Then work through the file. Everything below should exist as a document you have read, not as an assurance you have been given.
Two structural points deserve emphasis. First, insist on a REGISTERED SALE DEED for a demarcated, identified unit — not an allotment letter, not an agreement to sell held in perpetuity, not a share in a company that owns the building. Second, insist on a REGISTERED LEASE back to the operating entity. Both matter for enforceability, and as the next section explains, they are also what keeps the transaction on the right side of two regulatory perimeters.
ResortWealth is paid a channel-partner commission by the developer on a completed booking. That is why we put the covenanting-entity question at the top of this list rather than at the bottom: if we only wanted the transaction closed, we would lead with the brand name.
Have an independent Indian property lawyer — not the developer's panel lawyer — run title and review the covenant. Confirm all tax and structuring points with a qualified adviser in your country of residence and a CA in India.
No regulator stands behind the 8-10%. But it is lazy — and in our view misleading — to simply say "this is not a regulated product" and move on. The honest position is that these structures sit close to two regulatory perimeters, and where a particular scheme lands depends on how it is built.
The first perimeter is the SEBI collective investment scheme. Section 11AA of the SEBI Act treats a scheme as a CIS where contributions are pooled, the pool is managed on behalf of investors, the investors do not have day-to-day control over the management of the property, and the purpose is to receive profits or income from the pool. A structure in which you hold a registered sale deed to an identified, demarcated unit and lease that same identified unit is materially different from a pool: the asset is legally yours, your income derives from your own property, and you can sell it. The CIS question becomes considerably harder where a scheme pools rental income across all units and distributes pro rata regardless of your unit's performance, or where you are sold an undivided share rather than a demarcated unit. SEBI has acted against holiday-plan and resort-scheme promoters before. Ask, in writing, whether your return is calculated on your unit or on a pool.
The second is the Banning of Unregulated Deposit Schemes Act 2019. A "deposit" is money received by way of advance or loan with a promise to return it. The Act carves out amounts received in the ordinary course of business as an advance towards the supply of goods or the transfer of immovable property. A genuine sale of registered immovable property, with rent flowing under a registered lease, is not a deposit. A scheme where money is taken with a promise to repay principal plus a fixed return and no real property transfer ever occurs can be. This is precisely why the registered sale deed and registered lease are not administrative formalities — they are the structural features that keep the transaction outside the BUDS Act.
What you definitely do not have: deposit insurance (DICGC covers bank deposits to Rs 5 lakh; nothing applies here), any SEBI, RBI or IRDAI investor-protection mechanism, or an ombudsman. Your remedies are contractual — a RERA complaint, a civil suit, arbitration, or a claim in insolvency if the developer fails, where your ranking depends on how your claim is characterised. Assured means contractual. Capital is at risk. Take independent legal advice on the specific structure before you sign.
What follows is a comparison, not a recommendation. We are not registered to advise you on securities; for anything involving mutual funds or REITs, speak to a SEBI-registered investment adviser.
NRE fixed deposits. Currently in the region of 6.5-7.25% depending on bank and tenor (rate-dependent, illustrative). Interest on an NRE deposit is exempt from Indian income tax while you remain a non-resident, principal and interest are fully repatriable, DICGC insurance covers Rs 5 lakh per bank, and you can break the deposit in a day. On a post-tax basis that beats the roughly 6.25% net on an 8% resort unit — with far less risk and no illiquidity. We say that plainly because it is the strongest argument against the 8% deals, including Wyndham Grand Jaipur Amer and Regenta Pushkar. The 10% properties — KAMAH Jawai at roughly Rs 71 lakh and KAMAH Coorg at roughly Rs 91 lakh, both netting around 7.8% — clear the FD bar, but only if the covenant is honoured every year and the capital is realisable at exit.
Indian mutual funds. Market-linked, no assured return, and NRI-specific friction: several AMCs decline US and Canada resident applications. For US persons the decisive issue is PFIC — a non-US fund is a Passive Foreign Investment Company, taxed punitively under the excess-distribution rules and requiring Form 8621. Canada's offshore investment fund rules create a parallel problem. Neutral observation only, not advice.
Direct residential rental in India. Gross yields typically run 2-3.5% in the major cities, before vacancy, tenant management and maintenance, and the two-property repatriation restriction under Rule 21(2) does apply to residential. A resort unit's genuine advantages are a single institutional tenant, no tenant hunting, and no repatriation property-count limit; its genuine disadvantage is total concentration in one counterparty.
REITs. SEBI-regulated, exchange-listed, liquid within a day, required to distribute the large majority of distributable cash flow, diversified across many tenants and buildings, and buyable in small amounts. Distribution yields have commonly sat around 6-7%, with unit price movement on top or below, and the tax treatment varies by distribution component. A REIT is regulated real estate exposure. A resort suite is not.
Who should not buy any of this: anyone who might need the capital back within five years; anyone for whom this would be an outsized share of net worth; anyone who could not absorb twelve months of missed rent without distress; anyone whose main motivation is the free owner nights; and anyone who would need to borrow, since these units are NOT loan-eligible. Confirm your own position with a qualified adviser in your country of residence and a CA in India.
No. These units are not loan-eligible. Indian banks and housing finance companies lend against residential property and against commercial property with an established, bankable rental covenant; a hospitality unit inside a resort, leased back to a developer SPV, does not clear their credit policy. No lender we have seen funds these. Anyone who tells you a 20% down payment is enough is describing a construction-linked payment plan, not a loan. Plan for the full amount in cash, from inward remittance or from NRE, FCNR(B) or NRO funds, and add the cost stack on top: roughly 7-10% over base price without GST, roughly 19-22% with GST on an under-construction non-residential unit. If you need borrowing to make the numbers work, this product is not for you.
No, but the paperwork has to be right. Most NRI buyers complete through a special power of attorney limited to this one transaction: signed before an Indian consulate, or before a local notary and then apostilled if your country is a Hague Convention member. Once the document reaches India, the Indian Stamp Act section 18 clock starts — an instrument executed outside India must be stamped within three months of when it is FIRST RECEIVED IN INDIA, not three months from the date you signed it. Record the receipt date. Keep the POA narrow: name the property, name the attorney, exclude any power to sell or mortgage, set an expiry date. Several states also require registration where the POA allows presentation for registration. Confirm with a CA in India.
Effectively, yes. Without a PAN, Section 206AA forces tax to be deducted at 20% or the rate in force, whichever is higher, and you cannot file a return to reclaim the excess or apply for a Section 197 lower-deduction certificate. The relief in Rule 37BC, which lets some non-residents escape 206AA by furnishing a TIN, address, email and tax residency certificate, covers interest, royalty, fees for technical services, dividends and transfer of capital assets. It does NOT cover rental income. Do not let anyone tell you otherwise. Get the PAN before the first rent instalment falls due, link it to your NRO account and check Form 26AS and the AIS each quarter. Confirm with a qualified adviser in your country of residence and a CA in India.
Yes. Rent is current income, and current income is repatriable from an NRO account WITHOUT the USD 1 million per financial year cap. That cap applies to capital items — sale proceeds, inheritance, gifts and other non-repatriable-origin balances. For rent, your bank will want Form 15CB (a chartered accountant's certificate that tax has been deducted or paid) and Form 15CA filed on the income tax portal, plus Form A2 with the correct purpose code. Many banks will run a standing arrangement so the certification is refreshed periodically rather than every single transfer. Ask your bank what they need before the first payout, not after. Budget for the CA's recurring fee — it eats into a small yield. Confirm with a CA in India.
Because only 70% of net annual value is taxed after the Section 24(a) deduction, the arithmetic is: net yield = headline rate x (1 - 0.7 x effective tax rate). At a 31.2% effective rate (30% slab plus 4% cess, FY 2025-26, illustrative, no surcharge), an 8% property nets about 6.25% and a 10% property nets about 7.8%. A 9% property nets about 7.03%. Two warnings. First, never pair a 10% headline with the 8% property's 6.25% figure — they are different assets. Second, those percentages are on base price; measured against your all-in cost including stamp duty, registration and any GST, the real number is materially lower. Income characterisation is not automatic, so the 30% deduction is not guaranteed. Confirm with a CA in India.
No, and this is the most misunderstood point in the category. Assured means CONTRACTUAL — the obligation is owed by the developer or its SPV, not by Wyndham, Clarks, Royal Orchid or any bank. There is no deposit insurance and no regulator standing behind it. Capital is at risk. The hotel brand signs a management or franchise agreement with the developer; it runs the resort, sets standards and takes a fee. It has no privity with you and no liability for your 8-10%. Read the covenant page of the lease and write down the exact legal name of the entity that signs it, then look at that entity's audited net worth, its other projects and whether payouts run through an escrow. That entity is your counterparty. Everything else is branding.
Almost certainly not. Since 10 October 2024, renting of immovable property other than a residential dwelling by an UNREGISTERED person to a REGISTERED person falls under reverse charge — the registered operator or SPV that takes your unit on lease discharges the GST itself. As an unregistered NRI owner you do not need to register and bear 18% on the rent. If you are already GST-registered in India for other reasons, forward charge applies to you instead and your invoicing changes, so tell your CA about any existing registration. Separately, on the purchase: GST is roughly 12% effective on an under-construction non-residential unit and nil on a completed unit with an occupancy certificate. Confirm with a qualified adviser in your country of residence and a CA in India.
Two separate things. Your own liability: gains on immovable property held more than 24 months are long-term, currently taxed at 12.5% without indexation plus surcharge and cess; shorter holdings are taxed at slab rates. Your buyer's obligation: because the seller is a non-resident, the buyer deducts under Section 195 on the FULL sale consideration at long-term capital gains rates plus surcharge and cess, not the 1% under Section 194-IA that applies to resident sellers. The buyer also needs a TAN. That is real friction in a resale, and the standard fix is for you to obtain a Section 197 lower-deduction certificate before signing, so the buyer withholds against your actual gain rather than the whole price. Start that application months ahead. Confirm with a CA in India.
Yes, within the capital route. Sale proceeds are a capital item and go through the USD 1 million per financial year window from NRO — roughly Rs 8.5-9 crore, which is more headroom than a single resort unit needs. Rule 21(2) of the FEM (Non-debt Instruments) Rules 2019, the rule people quote as a two-property limit, applies to RESIDENTIAL property only; commercial property is unrestricted. What actually governs your position is the funding route and the paper trail — inward remittance, NRE or FCNR funds, with FIRCs retained from the day of the first payment. Keep every FIRC, the sale deed, the payment schedule and the tax challans in one file. Forms 15CA and 15CB apply here too. Confirm with a CA in India.
Value them honestly, then discount them. Twenty-five nights at a Rs 12,000 room rate looks like Rs 3 lakh, but you only capture value on nights you would genuinely have paid for, and blackout dates typically remove the peak weeks you actually want — Diwali in Jaipur, the Pushkar fair, Christmas in Goa. Most schemes do not let unused nights carry forward and many restrict transfer to family only. Food, beverages and taxes are always chargeable. A realistic haircut is 50-70%. If you visit that region once every two years, the nights are worth a fraction of the brochure number, and on a Dolce property offering 12 nights rather than 25 the effect on total return is small. Never let the nights be the reason for the purchase.
Everything above is general. Your position depends on the specific project, the registered lease and your own tax residency. An advisor will go through the actual documents with you — free, and we will tell you if it does not suit you.
