Living in India - Costs

Blue Topaz

Hi,

Sorry I know that there are a few threads already but I would appreciate any specific answers if possible..

We're possibly moving out to India in the New Year and have been told possible areas are Delhi, Chennai, Hyderabad and Mumbai; we would appreciate an approximate idea of how much it costs for:

House rental (3/4 bedroom) preferably gated community (budget of around $1500)
ASDL Broadband
Satellite or Cable TV
Telephone
Electric
Water
Cars - fuel and purchase or hire

Also, is there an income tax payable?

Thanks

Blue Topaz

shashank.aggarwal

Obviously Income tax is payable..we do pay it..however it depends on your status in India..it depends on what laws would apply on you..

US $1500 pm would almost be good enough for your entire monthly expense along with the house rent...

256k unlimited broadband - Rs.1200 (Can be less if you was limited)..

DTH - Rs.300 per month (depends on your selection of channels)

Telephone - Depends on the usage - but its among the cheapest on the world.. in a Dollar you can talk for hours...

Electricity - Depends on the usage but for a average family using AC or Heater Rs.1500-2500 pm would be safe bet...

Petrol is just above a Dollar for a litre..new cars can be purchased from Rs. 250,000 to whatever limit you wanna go..

Second hand cars are widely available and used..

__________________
Spineless

Travelogue - Around India

Blue Topaz

Smashing, thanks for that.

Could you tell me what sort of cars are available - we're a family of 5 and have a 4x4 at the minute. Are these picked up easily do you know?

Also, we're British and have got used to not paying tax in the UAE so do you know how the income tax in India may affect us? Perhaps worst outcome?

I tried looking at the Indian tax department website and didn't get very far in how much it actually is..

shashank.aggarwal

If you can tell me the budget Or range I might be able to suggest something...


The worst case scenario would be around 30% tax..I guess the best bet would be to consult some CA (Chartered Accountant) in India...

I will PM you the number of one whose services our family uses..not sure how much he would be aware about tax laws for foreigners, but still he will have better knowledge than us..

Secondly if you are being employed by some company in India then you can consult the HR people and they might point you in the right direction in the company itself..

Blue Topaz

Thanks, I currently drive a Mitsubishi Pajero (7 seater version) so would like something fairly sturdy again if possible.

I'll tackle the company about how they go about the tax then. I assume there must be tax breaks for renting, etc. It's a joint venture so we're waiting on the details of who the legal employer would be.

Amyth

I can't comment on how Indian Tax is going to effect you (being employed on foreign rolls), but the Indian male pays tax according to the income slab he falls under (in rupees):

0 - - 1,00,000 Nil
1,00,001 - 1,50,000 10%
1,50,001 - 2,50,000 20%
More than 2,50,001 30%

Surcharge @ 10% applicable if total income exceeds Rs. 8.5 lakh.
one can get a rebate upto Rs. 1,00,000 against insurance premium, PF contributions and other such schemes.

For cars... we have moved from bullock carts to cars far way back... a few options available in India
Japanese- Honda, Toyota
Korean- Hyuduai
American- Ford, Cheverlot
Indian- Maruti and Tata
French-Renault
Swiss- Audi
German- Mercedes

Most of them are available in Hatchback, Sedan and SUV models and can cost anything between 7k-20k USD!! Too much to choose from...

rohan5577

I am from Delhi and in Dubai at the moment.So I could perhaps share my views.

You simply can't find the range of 4X4's that are in Dubai. A popular car in India (also available in Dubai) is the Scorpio. I myself own one in Delhi and am very happy with it. Of course it does not compare with the LandCruisers, Muranos, Porsches etc but is decent by Indian standards. Cars are more expensive in India than here, as is gas. So one does'nt have the luxury of driving as here. And remember in India they drive on the other side of the road. Other 4X4's are Ford Explorer, Honda CRV, Nissan x trail, and even the Landcruiser...

Any other questions..feel free to reach out.

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You can take a man out of India, but you can never take India out of a man!

shashank.aggarwal

cars in that category can be had at below US $50,000.. better to say in range of US $30K - 50K..

Other cars like Honda Civic, Toyota Corolla OR Skoda Octavia (All Sedans) can be had for US $ 25k - 30K..

Noodle

Here in Pune (little bit cheaper than the bigger cities) a 3-4 bedroom nice flat (i.e. in a new, clean building where the lift works and there's a back up generator etc) can be 25,000 - 50,000/month.

Broadband: I just got a leaflet from Reliance on the door. They have different schemes, for example 600 kbps speed, unlimited download for 1,800 Rs/month. Or 1mbps speed, up to 350 MB download for 250 Rs/month, more to pay for additional downloads. There are a lot of different varieties available according to your need.

Phone: I pay about $10 every two months.

Cable TV: I pay 400 Rs/month.

Electricity: for my 3-bedroom flat with AC in one room and PC running 12 hours a day, washing machine, fridge, TV etc I pay in the winter (AC off) around 1,000-1,500 Rs/month, but in the hot season five times as much (AC on 24/7). It's the AC that makes the difference. I don't need a heater in the winter, but in Delhi for example you will!

__________________
If in hole
stop digging.

Indian saying

Prashant.M

India has a double taxation avoidance treaty with UK. So if you get taxed here in India, you can show that in UK and avoid being taxed there for that. Of course an expat will give you a better picture.

Calling Nick to the rescue .

Follow this link and click on UK for a huge load of legalese: http://incometaxdelhi.nic.in/taxsys/agree.htm#

Quite a few 4x4s are available but most are soft-roaders. Off the top of my head Ford Endeavor, Pajero, Vitara, X-trail, BMW and Merc. Sorry no Land Rovers. Don't expect the same variety of choice as in UK or UAE. It's a pain to drive big vehicles in our cities, maybe you would want to hire a driver.

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Happiness is just a thought away

Epicure

Just a small correction and few additions to your post.
Salary for male Rs0 to Rs110000 not taxable. Rs0 to Rs100000 was for previous year (as you quoted in your thread)
And tax exemption for female it is upto Rs145000 and for senior citizens, that is those above 65 years of age, tax exemption is upto Rs195000.

Blue Topaz

Thanks for all your responses - it gives us some meat to chew in negotiations, there's nothing quite like nasty surprises!

Just going back to housing, we will be looking for 3/4 bedroom house (with servant quarters if possible) on a gated community with pool - are these commonly found at all? If so, how much would be a reasonable ball park figure?

Many thanks

Blue Topaz

rohan5577

In Delhi, such apartments are mostly in suburbs - Gurgaon and Noida. 4 bedrooms are rare...3 are most common.

Indicative rents Rs 30-40k.

Nick-H

Sorry... ask me again about the tax thing in a year or two, I am still in the early stages of learning by experience. It is also unlikely that my retired-income experience (although it is upper-middle class in Indian terms) will help much when it comes to the very much more substantial world of ex-pat salaries.

On the car front.... this is just too huge a subject, unless you very much narrow down your requirements, but from what I have been reading recently on www.team-bhp.com Dubai is a haven of luxury cars, whereas India is the land of the basic model. There is a thread on that site comparing the car scene in the two places that would interest you, but it is a very busy site, and I couldn't find it on a quick look.

We have a few BMWs and Mercedes, there are dealerships here, and I think there may be the occasional RR or Bentley somewhere in the country. Imported cars are very expensive due to the large amount of import duty.

Here cars such as the Skoda Octavia are considered luxury!

Many of the foreign manufacturers listed have limited ranges here, and the models are often cut down to the Indian buyer's price ---- the first things to go are often safety features like airbags .

Audi, btw Amyth, is German: Skoda, Volkswagen, Audi, all same group (and Skoda, despite the way it markets itself in India, is the budget range of the group!). Ford may be, ultimately American, but its offerings here have a very European flavour.

Maruti may be Indian, and may even be manufactured here, but the bonnet still bears the "S" for Suzuki on the front!

Tata is probably the true home-grown. And Mahindra. Hindustan Motors, of course. I guess that, after what, fifty years, one can forget the British origin of the car ?

Noodle

Next to where I stay there are 4-5 bedroom houses with garden and servant quarters, they are around 50,000.

Here in Pune I only know of pools for apartment buildings, not small houses with pools.