Am I an NRI?
If you're someone who resides in a foreign country for employment, business or any kind of vocation, with no certainty about your duration of stay in the said country, then you fall under the category of NRI.
Are NRIs allowed to buy & sell real estate property in India?
Yes, nonresidential Indians and persons of Indian origin are allowed to purchase, own and use real estate property in India, except agricultural land, plantation property or farm houses.
Do NRIs have to get RBI's permission to buy property in India?
NRIs holding an Indian passport are not required to get any permission from the RBI to acquire immovable property for bonafide residential purposes.
What are the government requirements for NRIs to purchase real estate in India?
NRIs are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of the immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
How can NRIs pay for their property purchase in India?
Non-resident Indians with an Indian passport have the opportunity to pay the purchase consideration either by remittance of funds from abroad through normal banking channels or from their NRO/ NRE/ FCNR account.
What are the documents required for an NRI to purchase real estate in India?
PAN card (Permanent account number), OCI / PIO card (In case of OCI / PIO), Passport, Passport size photographs and residential proofs.
Are NRIs allowed to obtain loans to purchase real estate in India?
Yes. The Reserve Bank has granted some general permission to certain financial institutions providing housing finance for self-occupation subject to certain conditions.
Do NRIs get any tax benefits for their real estate investment?
No, unless the said NRIs file their tax returns in India, they are not eligible to receive any kind of tax benefits from their purchase or loans.
Are NRIs allowed to make joint purchases of property in India?
NRIs and PIOs are allowed to purchase and own real estate property in India jointly with another Indian citizen, but not with another foreign citizen.
Are NRIs to be taxed for income from rent or sale of property owned in India?
Yes. While just purchase of any kind of real estate property in India does not attract any form of taxes, any form of income like rent or any capital gains or profits from the sales of any of these properties are taxable.