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Legal formalities for NRIs…....

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Legal formalities for NRIs…....

Last updated: October 18 2006
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  • Legal formalities for NRIs…....

    Legal formalities for NRIs…....

    Non-resident Indians (NRIs) can freely buy and sell residential and commercial properties in India. A foreign citizen of Indian origin does not have to obtain RBI's permission for purchasing and selling residential and commercial properties (other than agricultural/plantation land and farm house) for bonafide purposes provided the purchase is met through foreign exchange.

    However, a declaration has to be submitted to RBI within 90 days of the purchase and similarly permission has to be sought from RBI will within 90 days of the sale of the property.

    There are many other clauses and issues that need to be addressed and taken care of so as to avoid any future legal hassles, especially when you are buying a property thousands of miles away.
  • #2

    #2

    Re : Legal formalities for NRIs…....

    Being an NRI, I dont have to bother now before buying a property in India because government norms have made things very easy for us..procuring home loans has also become easier with banks offering various loan slabs..

    Comment

    • #3

      #3

      Re : Legal formalities for NRIs…....

      rental queries

      rental queries....

      I'm a NRI based in Ohio and owning a 4 bedroom luxurious apartment in Chandigarh. But since, I stay away for long time and cannot come for frequent visits, I would like to rent out my apartment but I'm not sure...
      if a NRI is legally able to rent out their property......and what are the procedures....

      Are they different from procedures followed by resident Indians?

      Comment

      • #4

        #4

        Re : Legal formalities for NRIs…....

        Let me help you..

        Can you be a bit more descritive to mention your specific requirements. Like what is the location of your appartment, what BHK type it is etc. See there are many real estate portals that you can deal from your place... be more specific and i will tell you who can help you out...

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        • #5

          #5

          Re : Legal formalities for NRIs…....

          NRIs rent out property in india...

          No worries friend...

          You can definitely rent out your property even if you are a NRI. Besides generating revenue, your property will also be in proper condition with maintenance by your tenant. The rule book procedures are simple:
          • The NRIs can freely let out their residential or commercial properties in India.
          • The rental income should however be routed through the NRO account.
          • The rental income is freely repatriable from 1996-97 and is subjected to production of undertaking/certificate regarding payment of tax from the Income Tax authorities.

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          • #6

            #6

            Re : Legal formalities for NRIs…....

            Hi!! I am an NRI and want to know some legal implications of buying a property in India; the discussion has helped me to clear some of my doubts but is there any tax that I need to pay while buying a property?

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            • #7

              #7

              Re : Legal formalities for NRIs…....

              No taxes to be paid while purchasing property. Certain taxes to be paid when selling property. If NRI/PIO has held property for less than 3 years then he would have to pay 30% tax. If property has been held for more than 3 years then tax payable is 20%. Tax is payable on rental income too. At the time of renting out property or repatriation PAN card is required.

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              • #8

                #8

                Re : Legal formalities for NRIs…....

                Hi I am NRI living in Srilanka... I just wished to ask that in what manner the purchase consideration for the residential immovable property should be paid by foreign citizen of Indian Origin under the general permission....

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                • #9

                  #9

                  Re : Legal formalities for NRIs…....

                  My friend you need not be so much concerned about it as the purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE / FCNR accounts maintained with banks in India....

                  See how feasible it was,....

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