Hi Investors,
I am an Australian Citizen and thinking to invest in India – I wanted to confirm if investment in India is tax deductible in Australia?
Thanks
Hi AB_Aussie
The following 2 page publication from the ATO, "Australian residents with overseas real estate", answers your question.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul – If I have understood it well – basically from a taxation perspective their is no difference wherever you invest overseas be it USA or India/Japan?
I have been forwarded few projects that are under construction in India for IT majors assuring 18% returns and stable capital increase.
I am happy to share the details with everyone here on the projects to understand what fellow investors think about it and investing in India?
Hi AB
Sorry the link has disappeared from my earlier post. It was:
http://www.ato.gov.au/content/downloads/NAT14233_06.pdfYes I'd agree with you that the ATO's rules on this subject do seem to be independent of the country the property's located in.
However it is worth noting the ATO's statement: "Foreign income losses cannot be used to reduce your Australian income; however, you may be able to use your losses to reduce similar foreign income."
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Lost my shirt overseas, and I know why.
I learnt the hard way that it's best to invest where you have native language skills, acceptance, citizenship, sound economy, democracy and rights. Australia is such a great country, we've got it all here.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
If one was to invest OS, why would you invest in India, I did business in India a few years ago and to be honest I would think twice about doing anything there again. Property investment would be a nightmare I would think.
I am investing in the US property market residental homes. Good positive cash flow, they speak the same language as us and there legal system is not to difficult to get arround.
Why India?
Jeff
Any income that you receive from renting property outside Australia will generally be liable for income tax and will need to be included in your tax return. The methods of avoiding capital gains tax in India are not recognized by Australia. The investments exemption available in India are not eligible in the Australia and hence you will be paying the taxes in the Australia for this gain.
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