NRI Guideline

NRI property investment has quietly discussed a topic in real estate. Because now-a-day it is not permissible and easy rules and regulation by the government for NRI. NRI interested in investing in India because they feel secure and safe investment in India.With down rupee in share market real estate market of India highly attractive for the NRI investor to invest in India.

Can NRI/PIO purchase property in India?

Of course, non-resident Indian can purchase any commercial or residential property in India exception farming, farm houses or garden. Furthermore, there is no restriction to purchase a number of residential or commercial properties in India.

Is there require any permission from RBI (Reserve Bank of India) earning residential or commercial property in India ?

There is not require any permission from RBI to buy property in India.Anymore, NRI now not needs to go for approval from Foreign Investment Paper Board for Investing in India.

As above citizenship from some countries require permission from RBI, as the local laws restrict the purchase of property outside the home country.

How to finance on purchase ?

It is a little bit complex thing but not a big issue.The payment for purchased property can be made by:

  • Fund can be received through inward remittance in foreign exchange normal banking channels from outside India; or
  • Funds held in from the balance in the NRE, NRO or FCNR account as per RBI provisions and regulations.

Is there avail loan option for NRIs?

Payment of EMI can be done the method described in finance on a purchase. Also, you can be paid EMI by rental income from purchased property or cheques issues from your local bank account.

Is there home loan criteria for NRI?

Yes, for the home loan you met some criteria which are below:

  • Passport issued by Indian government
  • Age must be between 21 to 60 years
  • You would be resident abroad more than 1 year for salaried and more than 3 year for self-employed
  • For loan guarantee one reference will be required who resident in India
  • Copy of visa stamped on passport, power of attorney to relative resident in India, Contract of employment and salary slip if salaried

Can a dealer grant housing loan to non-residents of Indian where he is a principal borrower with his resident close relative as a co-obligate/ guarantor, or where the land is owned jointly by such NRI borrower with his resident close relative?

Yes sure. But repayment of EMI or margin money payment should be done by NRI in such cases the payment of margin money and repayment of the loan installments should be made by the NRI borrower.

What are the conditions required to be fulfilled for repatriation of sale proceeds?

The sale takes place after three years from the date of final amount payment made or date of final purchase payment and is considered which is late. Also, application for repatriation of sale is considered after met these criteria.

Is there any tax benefits are available on home loans repayments for NRI?

Up to 1.5 lacs per annum is deducted on interest on a home loan from house property as per Income Tax Act under section 24.

How many documents required for investment in India by NRI?

It is a little bit confusing for what documents are required for purchase property.
There are documents required listed below for investment in India by NRI:

  • Passport– NRI must have a passport issued by Indian government. But if he has foreign country passport then he must obtain a PIO(Person of Indian Origin) from that country’s consulate or embassy.
  • PAN (Permanent Account Number)– The PAN Card must be required for NRIs to invest in India. The PAN card is most important for Beneficiary ownership(BO). It also helps for purchase property can be registered or under construction.But for unregistered property NRI can not apply for loan.
  • NOC(No-Objection Certificate or NOC)– The NOC is required to prove well-formed investment done by NRI because it secures the NRI for the building permission of that project is taken in the right way from Municipality or not. The NOC is issued for the daily life needs like electricity, drainage, water supply, sewage etc and public safety requirement like Pollution control, city health department or fire safety.
  • Resident proof( in India/ Overseas)– There is require some resident proof also. NRIs needs to submit solid proofs like telephone bill, electricity bill, cell phone bill, or ration card in support of his address in India. He can also submit the equivalent document for his overseas residential proof and for this strong evidence also submit documents like driving license, work permit, identity card or copy of credit card and bank statement of last 6 month from all NRE/NRO account in India.
  • Sale agreement– Sale agreement is last but not least because it only required for under construction property not for possession ready property.

Is it possible NRI give POA(power of attorney) for purchase property to trusted person?

Yes sure, and it is most advisable that give POA to your trusted person to a local individual so that they can be done formalities like sale agreement, possession or registration. Many of real estate developer or company demand POA for their reference. But for your safety or security, some action should be restricted to lease or sell your property.