Skip to main content

NRI’s Guide to Selling Property in India

If you are an NRI and wants to sell property in India then this is the guide you need. But keep in mind we are talking about properties purchased by a person either before or after he became an NRI, not acquire or gifted properties:
1.      Who is the Buyer?
An NRI can sell his residential or commercial property to either a person residing in India, another NRI or a person of Indian origin (PIO). He can also mortgage his property to an authorized real estate dealer or a financial institution dealing with home loans.
2.      Restriction
You cannot sell a property to another NRI or a PIO if it is agricultural land or a farming development, it can only be sold to an Indian citizen who resides in India.
3.      Tax Implications and Deduction
The tax liabilities for NRI selling property in India are as per the Foreign Exchange Management Act of India. According to this act, the main factors that contribute to the amount payable as tax are:
·         The capital gains determined by the date of sale of property
·         The value of the agreement based on the profit gained
·         Charges liable to society
·         Other pending loans

4.      Tax exemptions:
There two situations to Tax Exemptions, a) if you a sell a residential property after three years of purchase and reinvests the money in another residential property within two years from the date of sale, the profit generated is exempted to the extent of the cost of the new property. However, you can't use the sale proceeds from an Indian property on a foreign property and still claim the exemption. 
5.      Repatriation of Indian Property
An NRI selling property in India is subjected to a list of generic terms and conditions while repatriating a property inherited from an Indian resident. Once these conditions are met, NRIs can go ahead with the process of repatriating the sale proceeds without the permission of the Reserve Bank of India. On the other hand, if the NRI has inherited the property from someone who is not of Indian origin, they will need to seek permission from the Reserve Bank of India.



The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek professional guidance pertaining to your query or doubt.

Comments

Post a Comment

Popular posts from this blog

Six Steps to Open an NRO account

An NRO (Non-Resident Ordinary) savings account is where you can maintain and manage your income earned in India such as rent, dividends, pension, etc. An NRO account can be opened in the form of a savings, current or fixed deposit account. Repatriation of funds from NRO accounts is permitted by RBI, subject to certain limits. Procedure for opening an NRO account is as follows: 1.       Options The non-resident Indian can convert his/her existing resident account in India to the NRO account or open a new NRO account. Documentary proof that the account holder is a non-resident as defined in Indian tax laws is a prerequisite for NRI accounts. 2.       Difference between NRO & NRE Account Unlike NRE accounts, interest earned on this account is taxed at the rate of 30% (plus surcharge) and other applicable taxes in India according to the ITA. In order to take the benefit of lower rates of tax as per double taxation avoidanc...
Post a Comment
Read more

Everything an NRI needs to know about Investment Options in India

If you’re an NRI looking for investing in India but don’t know the best options, considering the returns here the following investment options for you: 1.       Fixed Deposit There are three types of FD for NRI. NRE FD, NRO FD, and FCNR FD. NRE FD is maintained in Indian rupees. No tax is applicable to NRE FD. The principal and interest earned are fully repatriable. The interest rate applicable to NRO FD is similar to FD taken by Indian residents. Tax is applicable on NRO FD. In the case of NRO FD, only interest amount can be repatriated. NRO FD can be opened for 7 days to 10 years. FCNR FD is a foreign currency FD. This type of FD can be opened by depositing income earned overseas. 2.       Real Estate NRIs can invest in both residential and commercial properties with no restrictions on the amount or size of the property. However, NRIs are not permitted to buy agricultural lands, farmhouse or plantations. However, selling of ...
Post a Comment
Read more

Chennai Corporation Hosts Concert in City Parks!

The Chennai Corporation, along with UNESCO Creative Cities Network, launched a collective that will curate and present unique collaborative performances in parks across the city. Chennai made it to the UNESCO Creative Cities Network (UCCN) for its rich musical tradition in 2017. According to UNESCO, the goal of UCCN is to foster international cooperation among member cities committed to investing in culture and creativity for sustainable urban development, social inclusion and cultural vibrancy. The Greater Chennai corporation earlier this year in July launched the ‘concerts at the park’ initiative at Anna Tower Park. The civic body has planned to host music concerts in which both professional and amateur artists (singers and dancers) will perform every weekend. About 42 such big parks in the city have been identified that have an open amphitheater to take music closer to the residentsand as a way of encouraging Chennai’s unique art and culture in public spaces. More people will be en...
Post a Comment
Read more