Many NRIs and Persons of Indian Origin (PIO) want to invest in India, both commercial and residential properties. NRIs and PIOs also plan to buy such properties as an investment, and rent them out to earn a secure income
stream.
This post talks about various rules and restrictions related to such purchases. It also clarifies the concerns about taxation (capital gains and income tax), repatriation, etc. The rules regarding purchase, rent and sale of immovable property by Non Resident Indians (NRIs) have been thoroughly simplified and liberalized in recent years.
Let’s have a look at the current regulations for NRIs regarding purchase, renting out and sale of residential/ commercial property:
Purchase of Property:-
A Non Resident Indian (NRI) can buy a residential (apartment, house, etc) or a commercial (shop, office, go down, etc) property (but not farm land or a farm house or a plantation) without seeking any permission from the Reserve Bank of India (RBI).
But the NRI can not participate in any business activity in real estate.
No. Of Properties:-
There is no restriction on the number (or value) of properties that can be bought by NRIs.
Payment for purchases:-
The payment can be made using money remitted through banking channels, or using the funds from the NRE / FCNR / NRO accounts.
Permission from the Reserve Bank of India (RBI):-
No permission is needed by NRIs to buy a property in India.
Mortgage property to a bank / financial institution:-
An NRI can mortgage the property to a bank / financial institution to take a loan for funding the purchase.
Stamp duty / registration fee exemption:-
No stamp duty / registration fee freedom is available to NRIs.
Permanent Account Number (PAN):-
A PAN number is not mandatory for NRIs buying residential or commercial property.
Inheritance of property in India:-
NRIs can inherit a property in India.
Purchase going wrong:-
If the payment is made from an NRE / FCNR account, and the deal is canceled or there is no allotment of property, the refund amount can be repatriated by NRIs.
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2 comments:
Higher rate of returns in real estate investments in India, projects that comply with international standards, greater affordability, apart from emotional reasons like ‘owning a piece of homeland’ were driving the NRI segment growth in the real estate sector in the India. Today with more and more Indians looking at returning home and relocating themselves given better employment opportunities in India, NRIs are now looking at investing in the real estate in the country with a view to make India their future homes. Those who were making the transition from overseas to India, want to ensure that the transition is smooth, especially for their children, many of whom India would be a new living experience. A lifestyle match is what these people are looking for when investing in property here. While some preferred contemporary designs, others were searching for homes that were nostalgic and brought back memories of childhood or times spent in courtyard of a village, where just-rolled out papads lay toasting in the sun, or those ethnic porches where the family sat together enjoying the little ones tumble and roll at play.For more view- realtydigest.blogspot.com
Thanks for sharing us great Blog about how NRI can invest in Real Estate of India. These are valuable points which you mention earlier in your blog.
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