Things NRIs Should Keep in mind when Buying Property

If you are NRI (Non-resident Indian) and planning to get a property in the country of India, the time is not that good for you to so. While the real estate market of India went through price correction in the recent price buying a property in this country has become lucrative along with favourable currency rates.

Learn the aspects that differentiate the property buying experience of NRIs in India.

• If you are an NRI you do not need any kind of special permission but you cannot pay the money in foreign currency. You can lay in Indian currency by changing your foreign currency with the help of normal banking facilities. These funds are generally kept in the account of a non-resident under FEMA and RBI regulations. Also, there are no such restrictions to the number of properties that you can buy here in India and an NRI.
• The investments that are made by NRIs in the real estate market are treated as the par with an investment that is made by the resident Indians but there are some exceptions to it.

If you are buying a property in India, keep these in mind,

Nature of The Property

As an NRI you can buy all kinds of properties here except the property that has farmhouses, agricultural land, and the plantation property. If you want to get any of these lands you need to take permission from the government and also from RBI. Only this will help you get the land that you want to make yours.

Taxation

As an NRI when you sell your plot of land the Tax deduction at source is calculated with the rate of 20.6 percent on the long term capital gains. For the short term capital gains, the rate is 30.9. Though the final rate of taxation is equal and same for both the NRIs and normal residents. In case if an NRI has a lower tax slab that applies to him or her, he or she can apply to get a refund from the TDS by filing the income tax return.

Home Loan

The RBI has grants permissions to the housing finance companies and also to the banks that are registered with the National Housing Banks to give land to the Non-Resident Indian if you are wanting to buy a property on Indian soil. Though the loan cannot be transferred to the account of the NRI it can be transferred to the developers or sellers account. You can repay the loan with the FCNR deposits or from the NRO/NRE account of yours.

The Power Of Attorney

POA or power of attorney us something that you can give to any of your relatives or friend when you complete all the steps and finally purchase the property. This can be specific or generic about the rights that the representative of yours can perform.

Repatriation Of Funds To The Foreign Country

There are some guidelines that you follow for the repatriation of the fund. A POI or person of Indian origin or an NRI can repatriate all the proceedings from the beginning of the sale of the property.

• Buying property in India can be done following the FEMA directives which are applicable at the moment of purchase.
• The repatriated amount cannot surpass the original amount that is said for the property.

Following these guidelines, you can get the property that you wish to get in India is an NRI. Read the article thoroughly and understand the steps that you need to follow to have a safe and trustworthy purchase in India without any kind of trouble.