NRI Corner
Hey NRIs. This call-out is for you.
We understand you’re seeking investment opportunities and future growth in India. Our NRI Corner is designed to assist you in navigating this journey.
Legal Information:
According to the Foreign Exchange Management Regulations 2018, NRIs are allowed to purchase or acquire property within India. The government of India allows NRIs to invest in various residential and commercial real estate properties, with exceptions for agricultural properties like farmhouses, agricultural lands, and plantations. However, the government hasn’t placed any restrictions on the number of properties a NRI can own. Nevertheless, sufficient capital is mandatory in NRI’s account to acquire any property and funds received through inbound remittances are also included in this.
Documents Required:
As an NRI you’re required to furnish certain documents. These documents consist of:
- Copy of your Indian Passport and Visa
- Your work permit from your country of residence
- Your most recent income tax returns and
- Your last six months’ payment slips
- Additionally, you’re also required to submit a title deed and No Objection Certificate ( NOC) from the society.
Delegating through Special Power of Attorney
For NRIs who cannot be present in India physically for the property purchase transactions, the Power of Attorney(POA) is the solution. As a NRI, you can appoint or delegate a trusted individual such as your close relative, family member or friend to act on behalf of your transaction and take care of the paperwork.
To obtain a POA, you need to visit the Indian embassy in the city where you reside. Once you receive that, you send the POA to India which will undergo adjudication. It’s mandatory to instruct your designated POA to keep all the documents safe and forward them to you when you need them.
NRE and NRO accounts for financial safety
As an NRI, you’re advised to maintain both NRE ( Non-Resident External) and NRO (Non-Resident Ordinary) accounts in India. The NRE account helps you transfer the foreign earnings to India and the NRO account allows you to manage your Indian income sources and accept foreign currency deposits.
Documents required for an NRI to continue his/her ownership in India:
- Copy of the passport
- Copy of the PAN card
- Copy of the OCI/PIO card (if applicable)
- Copy of the sale deed or title deed of the property
- Copy of the latest property tax receipt
- Copy of the latest electricity bill or water bill
- A letter of authorization to a representative in India (if applicable)
A Non-Resident Indian (NRI) is an Indian citizen who resides outside India for employment, business, or other purposes indicating an indefinite period of stay outside India.
A Person of Indian Origin (PIO) is a foreign citizen (other than a citizen of Pakistan or Bangladesh) who:
- at any time held an Indian passport, or
- whose parents or grandparents were Indian citizens.
Yes, NRIs can purchase residential and commercial properties in India. There is no restriction on the number of properties they can buy.
NRIs cannot purchase agricultural land, plantation property, or a farmhouse. They can only acquire such properties by inheritance.
Key documents include:
- Passport and Visa
- PAN Card
- OCI/PIO card (if applicable)
- Proof of Address (foreign and Indian)
- Passport-sized photographs
Yes, NRIs can acquire immovable property in India by way of gift from a resident Indian, NRI, or PIO.
Yes, NRIs can avail housing loans from Indian banks to purchase property. The loan terms may vary depending on the bank’s policies.
Rental income from property in India is taxable. NRIs can benefit from standard deductions and may also be subject to TDS (Tax Deducted at Source) on rental income.
A POA allows a designated individual in India to carry out transactions and manage the property on behalf of the NRI. It is essential for managing property dealings in the absence of the NRI.
Yes, NRIs must adhere to legal and regulatory requirements, such as obtaining a PAN card, completing registration formalities, and complying with FEMA (Foreign Exchange Management Act) regulations.