Procedure for NRI to Buy Property in India, NRI Guide to Buying Property in India
NRI Non-Resident of India, people of Indian origin also called Overseas Indians or Indian Diaspora. These are those people who take birth in India and reside outside the republic of India. There is a complete Procedure for NRI to Buy Property in India.
For a Non-Resident Indian planning to buy a land or property in India can be easy if he is aware about the process, rules and laws. In India’s real estate sector buying property has also become more lucrative with different favorable currencies.
NRI does not required a special permission to buy property in India, he can purchase property but the payment cant be made in foreign currency. Payment is done in Indian currency. NRI have to purchase the Indian currency “Rupees”. The NRI must follow the procedure to buy the property in India. For getting property Procedure for NRI to Buy Property in India must be accomplished.
To keep all the information regarding the purchase of the property is essential for NRI, if he wishes to buy a property, unawareness can cause him a huge loss and trouble him too. One must be aware of all the rules and regulations created by the government on the purchase of the land or property. So he can make a fair deal.
Procedure for NRI to Buy Property in India:
There are various procedures by which NRI have to go through while purchasing a property in India. He must know the complete Procedure for NRI to Buy Property in India.
Nature of property:
Before buying a property in India NRI must know about its nature. He must keep knowledge regarding the nature of property. NRI can buy all the immovable properties in India except agricultural or plantation property. Buying a property in India is not a troublesome process for NRI he can purchase the property he wishes to buy but with the Indian currency, rupees. For buying a property of agricultural or plantation NRI must get the approval of the RBI (Reserve Bank of India) and the government. without their approval it is not possible for a NRI to get the agricultural or plantation land on legal basis.
NRI must have knowledge about the taxation system, so that one cannot charge high price for them. While dealing with the property they must know about the tax charges includes with the respective land. When NRI deal on basis of selling property in India, TDS (tax deducted at source) is calculated at the rate of 20.6% on long term capital gains and 30.9% on short term capital gains. For NRI or Indian residents final taxation system is equal.
So he must keep all the basic information and knowledge about the taxation system so that he can invest his monetary on correct basis.
Power of Attorney:
A power of attorney (POA) or letter of attorney is a written authorization letter to act on the behalf of other in legal or private business concerns. As NRI stays outside the region of India, they have this right to give the POA to their friends, family, relatives or any other they wishes to give, in order to complete the process of purchasing the property. Without having Power of Attorney one cant take step to complete the process of the purchasing property. So it is very essential for an individual to have a POA in order to take part in process of purchasing land or property.
Repatriation of funds back to the foreign country:
In repatriation of funds there is an act of selling of property and the amount so received as sale proceeds is sent abroad to the country of the NRIs residence. In the general terms repartitions refers to the returning to the ones origin. On the basis of the financial terms repatriation refers to the converting of foreign currency into ones own currency. For purchasing land in In the India NRI must have to make payment in the Indian currency rupees. There are various guidelines for the repartitions of the monetary or liquidity funds. So NRI must convert its currency into ones home currency in which he is dealing.
This is the information which an outsider must know as these are Procedure for NRI to Buy Property in India.
Restrictions on Property Purchase by NRIs:
- The NRI can purchase all the immovable property he desires to purchase. But he cannot purchase the agricultural and plantation property. For buying property permission of government is essential.
- Other than agricultural, plantation or farmland property NRI can’t take permission of the RBI or government. He can make the dealing on the fair and legal basis.
- The documents required by NRI is valid passport, address proof, Permanent Account Number (PAN card) and photograph.
Rules for NRI to Buy Property in India:
Methods and System for NRIs to buy property in India:
Due to various reasons people living outside the India they are Non-Resident Indian. Sometimes they wishes to buy real estate properties in India. For this they have to go through various process. They must have all detail knowledge and information about the immovable properties. Along with this they have to follow all rules, regulations and procedure in order to purchase the property. This is an important step for a NRI and he have to go through this.
Rules applying to Purchase of realty in India by NRIs:
In the section 3 of books of regulations transfer of immovable properties to the Non Resident Indian is mentioned. The general permission is given to the NRI to purchase the properties (other than agricultural and plantation) in India. But they have to make payment in Indian currency rupees.
Rules applying to Purchase of realty in India by a foreign company:
A foreign company situated in India cannot buy immovable properties of India. They only can lease them not more than 5 years. Each state has its own rules, laws and regulations. They can’t purchase property in India on their own name.
Most of the time in India properties purchased by PIOs and NRIs by consulting their friends, families, relatives or other who does not have the applicable knowledge about the rules and regulations while purchasing assets in real estate market so one should consult to a professional before dealing in the process of the properties.
Someone having required knowledge about the process of the dealing in the land can suggest and advice a person greatly so that he/she may not perform any mistake and can easily get the land or property they desire to get.