If you are an NRI and you are planning to invest in real estate in India there are certain things you should know beforehand and here are a few things you should keep in mind:
1. Know Your Options
NRIs Can Invest in Most Schemes Such as Mutual Funds, Fixed Deposits, Bonds, Real Estate, Certificate of Deposits, Equities, and Exchange Traded Fund (ETF).
2. Mode of Payment
The monetary transaction must be in Indian rupees (INR) and through normal banking channels using an NRE/NRO or FCNR accounts for a more flexible and convenient payment.
3. Power of Attorney
It is important for an NRI to execute a Power of Attorney (POA) in the name of his spouse, children or any other trusted relative in India if he is unable to be present himself. That way, he would be assigning the power to transact on his behalf to the person in whose favor the POA is executed like the assigned person can buy, lease, rent, maintain or enter into any other transaction or deal with the property as desired by him.
4. Documents Required
An NRI needs to hold an Indian passport. However, if an NRI holds a passport of a foreign country, then he needs to have a Person of Indian Origin (PIO) card. But if an individual who is not an Indian Citizen but eligible to become an Indian citizen, i.e. if one of his parents is an Indian, he should have an Overseas Citizen of India (OCI) card. Along with it, an NRI should have a PAN Card and a Power of Attorney Certificate.
5. Property Tax
If an NRI buys a property in India, he obliged to pay property tax in India along with stamp duty and registration fees for the property. Apart from that, if he earns money via rent in India, it would subject to income tax.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek the official website of Income Tax Department of India https://www.incometaxindia.gov.in for detailed information and further assistance.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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