NRI Section
We help turn your dreams into reality. It doesn’t matter if you are living miles away from India; you can now buy your own property in the country without any hassles. Our dedicated team understands the needs of a non-resident property buyer and wide domain knowledge will help make the process easy and carefree for you. Here’s a quick guideline to answer your queries. In case you have further doubts.
Yes, a non-resident Indian can buy either a residential or a commercial property in India.
No, there is no limit on the number of residential or commercial properties that an NRI can purchase in India.
The Reserve Bank of India, under the purview of the Foreign Exchange Management Act (FEMA) governs all commercial/residential property transactions done by NRIs in India.
Payment for the purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the NRE, NRO or FCNR Account.
No, according to the Indian Income Tax Act, one property will be considered as self-occupied and hence you do not have to pay income tax on both.
Except for the self-occupied property (only one) you would have to pay taxes for all the other properties whether they are rented out or not. For the non-rented out property you would need to calculate deemed rental income as per income tax rules.
No, you do not have to pay income tax on that property.
Yes, whether your property in India is rented-out or not, you would still need to pay income tax on the property based on the deemed rental income.
To find out if the country of your residence levies deemed income tax on housing property, you need to look at the tax code for that country. In the case of NRIs in the United States, the US tax code does not tax deemed income.
Yes, the RBI allows NRIs to take home loans for buying property in India as well as for repair and renovation work.
You can pay the EMIs in the following ways:
By remitting the money from your foreign bank account through regular banking channels By issuing postdated cheques or Electronic Clearance Service (ECS) from your NRE, NRO or FCNR Account Out of the rental income that this property earns Cheques issued from your local relative’s bank account
Yes, it is recommended to give a PoA to a person resident in India so that he or she may complete formalities such as registration, possession, execution of agreement of sale etc. A PoA can be given to execute all contracts, deeds, mortgages, lease, sell and all matters relating to managing the property. However, at any given time, it would be better to give a specific power of attorney to any person, restricted only to a single action such as only purchase or only for lease. The power of attorney should be executed on a stamp paper or as per the requirement of the country where the PoA is executed. You must then get the PoA attested by any authorized official of the Indian Embassy/Consulate/Trade commissioner in that country
Many times, when NRIs purchase properties, developers demand a PoA in their favour. You may choose not to give this PoA but it would lead to delays since all documents would have to be mailed to your foreign address. Giving a specific PoA would be a better option.