Frequently Asked Questions
What is Uday Raj Real Estate?
What are the different opportunities available?
Uday Raj Real Estate offers users an opportunity to participate in completed and rent-generating Grade A commercial, retail, and warehousing properties with up to 8-10% yields and 17-20% target IRRs.
How does Uday Raj Real Estate shortlist properties?
Our team examines various metrics like rental yield, location, tenant, lease duration, quality of asset, scope of capital appreciation, micro and macro market indicators, legality of title, and earning potential. We rely on the extensive experience of our team which comes with more than $1 billion of real estate investment experience from The Blackstone Group, the world’s largest real estate fund.
Why doesUday Raj Real Estate focus on rent-yielding real estate?
We believe that rent-yielding real estate, if researched thoroughly and conservatively, offers the best after-tax returns. Property Share founders and team come from core real estate investing backgrounds having invested >$1 billion in Indian real estate.
How can I diversify through Uday Raj Real Estate?
Users can diversify by participating in transactions across geographies, tenants (technology, financial services), and asset classes (retail, office, warehousing).
Who takes care of tenancy and property management?
Users can diversify by participating in transactions across geographies, tenants (technology, financial services), and asset classes (retail, office, warehousing).
How can I get specific questions answered on a particular property listing on the platform?
You can sign-up and schedule a call with our representative who will help answer your specific questions. Click here to schedule a call.
How will I be taxed on distributions?
Distributions: Distributions are taxable directly in the hands of the user as per his/her tax bracket. The indicative withholding tax under the current income tax regime has been reproduced below:
| Residential status as per Income Tax Act, 1961 | Withholding Tax rate (TDS) |
|---|---|
| Resident | 10% |
| *Non-resident Individual (“NRI”) | 30% (plus applicable surcharge and cess)* |
*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
How will I be taxed on capital appreciation?
Capital appreciation is subject to capital gain tax at the applicable rate. The applicable tax rate would depend on the period for which the asset was held (short term vs long term). The benefit of indexation may be explored in the case of long term capital gains (holding period > [●] years).
Does tenant pay GST?
Yes, the tenant pays GST over and above the rent.
Is the TDS deposited against my name?
Yes, the TDS on your distributions is paid and deposited against your PAN number and can be claimed back at the end of the year.
Can I transfer the transaction amount from an NRE account?
Yes, you can transfer the transaction amount from your NRE or NRO account.
Can I transfer my transaction amount in foreign currency?
Can I get distributions and sale proceeds credited to my NRE account?
No, since NRE is a freely repatriable account, INR deposits cannot be made into an NRE account. Your distributions will be credited to your NRO account from where you can transfer it to your NRE account. Please speak to your banker for a more detailed understanding of your specific requirements.
I am an NRI. What taxes will I need to pay?
Under Indian income-tax law, an NRI is required to pay tax on any Indian sourced or received income. A basic exemption limit is provided under the Indian tax law. If the income in India does not exceed the basic exemption limit, the NRI will not have to pay tax in India. If the income in India exceeds basic exemption limit, the NRI will have to pay taxes in India as per the applicable slab rates.
*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).
I do not have any taxable income in India. Why do I still need to pay tax?
Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as TDS (tax Deducted at Source). Such an NRI can claim a refund of taxes withheld by filing a tax return in India.
What is a TRC? How can I get a TRC?
A TRC is a Tax Residency Certificate provided by the country where you are currently residing. India has a Double Tax Avoidance Agreement (DTAA) with almost all major countries that reduce TDS to lower thresholds of 10-15% (depending on the provisions of the DTAA). However, the benefit of the reduced tax rate is only available to users who are able to produce a TRC. Please speak to your tax advisor on how you can procure a TRC for your country of residence.
