Investors making a beeline for foreign properties must be mindful of rules

Since there will be tax incidence in the foreign country, an investor has to seek credits in India

With Indian real estate, especially its residential segment, caught in a prolonged slump, high net worth individuals (HNIs) are increasingly gravitating towards foreign markets. Knight Frank, a real estate consultancy, had recently reported a rise in the number of Indian home buyers in the London market. Indian HNI investors are also making a beeline for properties in the US, Canada, Australia, the United Arab Emirates (UAE), and so on. 

Alongside, the Income Tax (I-T) Department in India has also become more vigilant about tracking foreign transactions. India has signed the double taxation avoidance agreement (DTAA) with around 90 countries. This agreement