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

Tarnetar Fair

One of the many vibrant festivals of Gujarat, Tarnetar Fair is the annual festival that takes place in Sundernagar,  Gujarat— a tiny village, about 200 km away from Ahmedabad.  This is inspired by  Draupadi's  swayamvara , and is a celebration of ethnic Gujarat’s folk-dance, music, costumes, and the arts, centered around young tribal men and women seeking marriage partners. Here many kinds of folk dances are performed; by far the most popular is the  raas , in which dancers hold sticks to clack against those of other dancers. As many as one to two hundred women perform  ramadas  in a single circle, to the beats of four drums at a time and the tunes of  jodia pavas  (double flutes). Rabari women of nearby Zalawad perform the famous circular folk dance called  rahado . Their marital status is indicated clearly by their costumes; a black  zimi  (skirt) means she is married. But if a woman is wearing a red  zimi , it means s...
Post a Comment
Read more

Six Steps for NRIs on How to Invest in Mutual Funds

NRIs can invest in mutual funds in India – as long as they adhere to the Foreign Exchange Management Act (FEMA). Here are few steps that will smoothen your investment process: 1.       Open an Account An NRI needs to open an NRE or NRO account. NRIs can invest in repatriable or non-repatriable basis using funds from the NRE or NRO accounts respectively. 2.       Get KYC Done  Even if an NRI has already done a complete Know Your Client process, s/he still needs to do KYC again after achieving non-resident status. Important documents required for NRI Mutual Fund investment KYC includes PAN Card, Proof of Foreign Address Residence, Passport and Cancelled Cheque of NRE/NRO Account. 3.       Two Ways to Invest Once KYC is completed, an NRI can start making investments into domestic mutual funds as an NRI investor.  There are two routes to do that—directly through normal banking channels o...
Post a Comment
Read more

The Pushkar Mela 2019

The Pushkar Mela also is known as the Pushkar Camel Fair is a unique celebration of the beauty of the coveted “ship of the desert” – the camel along with some other cattle. It is estimated that more than 2 lakh people from all around the world visit this unique mela, which mainly focuses on trading camels and cattle, camel races which are the main attraction and a variety of other cultural performances and art exhibits. This year the dates of the Mela (Fair) are from 4th to 12th November 2019. The Pushkar Mela is also a holy pilgrimage for Hindus, pilgrims that visit Pushkar come to take a holy dip in the Pushkar Lake and offer prayer to Lord Brahma, the deity residing in the temple at Pushkar. It is said to be the only temple of the deity in the country, which makes it an important pilgrimage spot for people of faith. The Pushkar Mela creates a grand event cherished with a huge carnival including an array of musicians, magicians, dancers, acrobats, snake charmers ...
1 comment
Read more