Types of properties that an NRI can buy in India
Generally speaking, NRI investments in the Indian real estate market are considered no different than those of Indian citizens. However, NRIs are not permitted to buy agricultural land, farmhouses, or plantation property in India. The Reserve Bank of India (RBI) and the Indian government both need to give their stamp of approval before they can do that.
How can an NRI buy a property in India?
- Hire a lawyer and a public notary from the area.
- Get in touch with a real estate agent who is familiar with the neighborhood where you intend to buy.
- Prepare a Power of Attorney if you won’t be present in India throughout the transaction.
- Locate a property and reach a price agreement.
- Your attorney will conduct research and draft a purchase agreement to ensure a smooth transaction.
- Present yourself or a duly authorized representative to sign the sales contract.
How can NRI buy property in India without being physically present?
Ideally, any NRI who wishes to purchase real estate in India must be physically present at the time the purchase agreement is signed. However, their absence from the occasion requires a Power of Attorney, often known as a POA, to be executed on their behalf. A Power of Attorney (POA) lets an NRI choose another responsible party to act on their behalf in business dealings. If you are an NRI and wonder what a POA does, here is the answer:
The person who is assigned to the POA is in charge of wrapping up the paperwork and carrying out the deal on your behalf. You’ll need a current POA document in order to delegate authority to your chosen representative.
To obtain the POA document, you must visit the Indian Embassy in your current country. There, you’ll be expected to present your most recent photo ID. In the presence of the Embassy’s consular officer, the POA will be signed. Please use your left thumb to sign this paper. Once the preceding steps have been taken care of, you can submit the official POA to your reliable contact in India.
What payment options do NRIs have?
Both home loans and incoming bank transfers from an NRI bank account can be used to finance property acquisitions. The Reserve Bank of India has finally authorized NHB-registered banks and housing finance institutions to extend home loans to non-resident Indians (NRIs) so that they can purchase real estate in India. However, only the Indian rupee must be used for all financial dealings. The money will be wired immediately to the seller’s or the builder’s bank account.
As far as repaying the loan is concerned, money from an NRI’s NRO (Non-Resident Ordinary) or NRE (Non-Resident External) account or FCNR (Fixed Deposit Foreign Currency account) can be used. The non-resident Indian (NRI) can pay in full or in part without obtaining a mortgage by using authorized banking channels outside of India to transfer the funds. NRIs need to provide the following information when applying for a home loan:
- Xerox copies of passports and Indian visa
- If you do not have access to an Indian passport but do have a foreign passport, you may apply with a PIO card.
- If either of your parents is a citizen of India, you may apply for an OCI card.
- Your country’s equivalent of a work permit, job contract, or appointment letter
- Latest income certificate / Payslips for the last six months
- Latest income tax returns
- Account statements from NRE and NRO banks for the previous calendar year
- Nationality as reported to the Bureau
- Power of Attorney (in case you will be absent during property dealings)
Documents required by NRIs while registering and Buying properties in India
Make sure you double-check and verify all necessary documents to ensure a seamless transaction and a trouble-free ownership experience. Basically, you need the following documents mentioned below:
- Title deed (in the seller’s name)
- Approved plan
- Building permit
- Occupation certificate (in case it is a ready building)
- Older title deeds, if any
- Updated encumbrance certificate
- Share certificate (in case it is a cooperative housing society)
- NOC from the society
- RERA registration (if applicable)
- Identity proofs (PAN, Passport)
- Residential proofs (Utility bills)
Investing in real estate in one’s own country might be a lifelong goal. As long as you follow the rules and regulations of the RBI and do your homework to find the best offer, India’s real estate sector is always a good bet for investors. If you wish to buy or invest in real estate properties in Assam, Protech is your perfect option.
Protech Group, a major player in the Northeast real estate market, guarantees the highest quality and most aesthetically pleasing real estate properties. In case you have any questions or you’re interested in scheduling a visit, visit this page. ( URL = https://protechgroup.in/contact-us.php )
FAQs:
1. How do NRIs pay while buying properties in India?
If an NRI does not have the funds with them, it’s possible to get a home loan. The RBI has now granted permission to banks and housing finance institutions that are registered with the National Housing Bank to provide home loans for NRIs to buy a residential property in India.
2. Can NRIs co-own immovable properties in India?
An NRI can buy property in their own name or jointly with any other NRI. The property cannot be in joint ownership with a resident Indian or with those who are otherwise not allowed to buy property in India.
3. Do NRIs pay property tax for properties owned in India?
NRIs who buy a property have to deduct Income Tax at 1% if the value of the property is more than Rs 50 lakhs, and this amount has to be paid to the Income Tax Department. But, if you’re buying this property from another NRI this rate is much higher. If the property is for self-use and is financed through a home loan, the interest paid on the loan is deductible from the NRI’s total taxable income. The deductible amount is capped at Rs.1.5 lakhs and NRIs can also get tax deduction benefits on the repayment of the loan.
