Business Reporter
DOHA: India is currently in the process of formulating legislation for the introduction of real estate investment trusts which will help individual investors enjoy the benefits of owning an interest in the securitised real estate market, an Indian economist and tax expert has said.
Sanjiv K Chaudhary, executive director of Pricewaterhouse-Coopers (India) said the real estate investment trusts would be regulated by the Government of India as well as the Securities and Exchange Board of India (SEBI).
“The Indian real estate sector is booming. Investors can benefit from this by forming part of the real estate investment trusts which will make investments in the sector through various tools,” Chaudhary said.
He said another sector that would throw open incredible opportunities for investors including NRIs was the current infrastructure build-up.
“To back up India’s economic growth of around 9% annually, we need a world class infrastructure. They include roads, bridges, and sea and air ports among other facilities.
“Public-private partnership can drive the infrastructure build up. That’s where the real growth lies,” said Chaudhary, a chartered accountant and a law graduate.
Asked to pick up a “good investment tool” for average NRIs, he said, “Mutual funds are a safer bet for them. Mutual funds are less risky. In India they are well managed by reputed players including Fidelity and Morgan Stanley.”
Those interested in the equity market can consider stocks in infrastructure, pharmaceuticals and education among other sectors, he said.
Chaudhary said there was nothing specific for NRIs in the Indian budget for the current fiscal other than that the taxes have been rationalised.
“Various components of tax have come down drastically. This is a benefit for Indians including the NRIs. “The prevailing bank interest rates in India are higher even if one factor into them the country’s inflation which is close to 5%,” he said.
Chaudhary specialises in various aspects of tax practice including domestic tax matters, international tax and treaty application to foreign companies, cross border taxation, regulatory matters and transfer pricing.
Chaudhary has over 25 years of experience in the field and he regularly speaks and contributes articles on international tax and transfer pricing issues. |
