What are the basic regulations or formalities required to be followed by the NRIs in order to buy properties in India?
A declaration of purchasing the property has to be filed by the Reserve Bank of India within 90 days from the date of final purchase.
What is the process required to be tagged along by the NRIs while purchasing any residential immovable property?
Though RBI can give general permission to the NRIs to sell their properties, the funds involved in the purchase should either be transmitted to India or paid off-balance in FCNR/NRE accounts.
What are the provisos required to be complied with if repatriation of the sale is needed?
Only if the sale takes place after three years from the date of final purchase, the plea for repatriation will be considered as a bona fide application.
What are the conditions applicable for the NRIs while exchanging funds?
There are a number of instructions for the exchange of funds. Be it a Non Residential Indian or a Person of Indian Origin, he can put back the proceeds from the sale of property in India on the following conditions-
An NRI planning to buy property in India does not entail any special permission. But, the payment cannot be made in foreign currency. Normal banking channels from India can only be adopted for the same while the entire process will be generated as per the regime stated by the Government. At the same time, there will also be no restriction on the number of residential or commercial properties an NRI wishes to buy.
What will be the nature of property?
Except for farm house, plantation property and agricultural land, the NRIs can buy any sort of immovable properties in India. Nevertheless, to acquire the same, one has to seek the permission from the RBI.
What is the taxation rate involved in the process?
For an NRI selling a property or land in India, he has to get through the essential ambit of TDS, which is supposed to be at the rate of 20.6 per cent and 30.9 per cent on long-standing and short-standing capital gain respectively. Still, the final taxation is similar for both the residential as well as non-residential Indians. Moreover, an NRI can also plea for refund of the Tax Deducted at Source (TDS) by sleeving their income tax return.
What are the home loan regulations required to be followed by the NRIs?
The housing finance companies and banks in India are given a general permission to provide loans to the NRIs for purchasing residential as well as commercial properties in India. Nevertheless, the loan amount cannot be acclaimed directly to the bank account of the NRI holder. The amount will be credited to the account of either the builder or the seller.
Can there be any Power of Attorney (PoA)?
Considering the fact that the NRIs live outside the country, they can decide the PoA on their own and go ahead with the purchase procedure in India. Be it a friend or relative, the PoA can be given to anyone residing in India.
What are the guidelines related to repatriation of funds?
When it comes to the repatriation of funds, there are always certain guidelines for the NRIs. The renewed amount cannot be bigger than the original property amount.