The Indian property market is really on the surge due to the booming property value. Looking as such a volatile market it is a hot spot for NRI’s to invest. It is always not possible for such persons to be physically present when such investment procurements happen. The process can be done online but it is a tedious process and for that, they need to find a suitable experienced property dealer who is authorized to do such transactions. It is better to be aware of certain facts before such transactions are made to happen.


img Properties They Are Allowed To Buy

Almost all properties are open for NRI Investment but there are certain natures of properties where prior permission from RBI is required. If NRI’s wishes to buy Agricultural land, plantations and Farmhouses then such permissions are required. The same is the case if Persons Of Indian Origin does not have an Indian passport.

They have to furnish IP17 as a required documentation to the Central Office of RBI within 90 days of Property Investment. The document must be supported by the required documents like agreements and clearance certificates.

A PIO can easily acquire properties which are given to them through inheritance or as gifts. The payment for such Properties for NRI can be made using the foreign exchange. They also require paying the required stamp duty fees when they make such purchases. They will also receive certain benefits like having home loans, double tax avoidance and there is no upper limit on the tax relief that is obtained on the amount that is paid as interest.

They can easily buy such properties having the help of their relatives or by having NRI Services as offered by certain law firms where they can give power of attorney.

img How They Can Rent A Property

If they wish they can rent out properties that they have in India. The income that they will get from such act is taxable. The renting of properties must be according to the RBI guidelines. No RBI permission is required if they wish to rent out their residential or commercial properties in India.

img The Documents Required For Buying A Property

There are certain documents required for buying a property by NRI’s in India. The required documents are:

  • PAN Card

  • PIO Card for PIO

  • Passport for NRI

  • Passport size photos

  • Address Proof

If they only acquire a property then it does not attract any income tax payment. But if there is any nature of income generation from such properties then that income is taxable.


img The Eligibility to Have Loans

Both NRIs and PIOs have the opportunity to have loans offered by authorized dealers or financial institutions that are approved by the National Housing Bank. The amount of loan would not be deposited in the NRE/NRNR/FCNR account of the NRI or PIO.


img Tax Returns to Be Submitted

If NRIs or PIOs have income above the basic exemption limit of Rs. 1.6 lac then they have to submit tax returns.

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