If you have a foreign passport, you can buy property in India provided you get an OCI card.
NRIs can use a specific PoA if they want to authorize a person to sell on their behalf. But the PoA must be registered in India after the payment of stamp duty.
They can approach any regulator or court to seek relief just like an Indian resident.
There’s a $1 million cap on repatriating sale proceeds of a property, rent and other income. OCC and NRI can remit a higher amount to the home country only in some conditions.
The real estate sector has been witnessing a slowdown for a while now, and cases of delays and defaults have eroded buyers’ trust.
There is no restriction on NRIs for repatriating rental income or even property sale proceeds (other than agricultural land, a farmhouse and plantation property) as long as the total proceeds are within the set limit of $1 million in a fiscal year. The Condition Are: The property being sold was acquired as per the foreign exchange regulations applicable during that period. The amount being repatriated cannot exceed the cost of the sale proceeds from the transaction. The sale proceeds from a maximum of two residential properties can be repatriated. The maximum amount of repatriated funds from a Non-Resident Ordinary (NRO) account is capped at $1 million per fiscal year. Funds can be repatriated only after settling all the applicable taxes and other charges.
It is obviously very important for an NRI to pay attention to factors like the legitimacy of land, compliances to be followed during construction, environmental clearances, etc. at the time of a property purchase. As real estate is a state subject, laws may differ from state to state and there is, therefore, no one-size-fits-all response.What is the jurisdiction of any dispute related to property investment in India?
It is not advisable for NRIs to file property dispute cases anywhere else other than the jurisdiction where the property is located. Only the court in that particular jurisdiction can try a property-related case.
Is it possible to sell property in India if you are a Non Resident Indian (NRI) currently living in the US? The answer is yes but the process can be cumbersome. Often selling the property isn’t the hardest part. Getting the funds to the US is tricky and the sale may have unanticipated tax implications.
NRIs can buy all sorts of immovable properties in India other than agricultural land, farm house and plantation property. To acquire agricultural land/plantation property/farm house in India, they have to get approval from the RBI and the government.
When an NRI sells a property in India, TDS (tax deducted at source) calculation is done at the rate of 20.6 per cent on long-term capital gains and 30.9 per cent on short-term capital gains. However, the final taxation rate is similar for NRIs and resident Indians. If an NRI has a lower tax slab applicable to him, he can apply for a refund of the TDS by filing their income tax return.
The RBI has given a general permission to banks and housing finance companies registered with the National Housing Bank to provide loans to NRIs for buying residential property in India. Sanctioned in Indian currency, the loan has to be repaid using the same currency. However, the loan amount, according to the regulations, cannot be credited directly to the bank account of an NRI and has to be disbursed to either the seller's or the developer's account. The loan can be repaid using funds in an NRI's NRO/NRE account or FCNR deposits.
As they live outside, NRIs have an option to give PoA to their friends or relatives to complete the property purchase process in India. The PoA can be general or specific about the rights your representative can exercise
There are certain guidelines for repatriation of funds. An NRI or Person of Indian origin (PIO) may repatriate the proceeds from the sale of immovable property in India on the conditions mentioned below: .The property must have been purchased in accordance with the FEMA directives, applicable at the time of purchase. .The amount repatriated cannot exceed the original amount paid for the property, if the property was acquired in foreign exchange remitted through normal banking channels or out of funds held in an FCNR (B) account.
Passport PAN Card Address Proof Sale Deed Allotment Letter Document From The Soceity Original Share Certificate Encumbrance Certificate Lawyer Certificate Further Reading
Non-residents can buy residential as well as commercial real estate. They are not permitted to purchase agricultural land or farmland.