Can NRIs legally buy property in India?
Yes, NRIs (Non-Resident Indians) can legally buy both residential and commercial properties in India under FEMA rules. However, they cannot purchase agricultural land, farmhouses, or plantation property.
Do NRIs need RBI permission to buy property in India?
No, NRIs do not need prior permission from the Reserve Bank of India (RBI) to buy residential or commercial property in India.
How can NRIs fund their property purchase in India?
– NRE/NRO/FCNR bank accounts
– Home loans from Indian banks or NBFCs
– Personal funds transferred legally through banking channels
Can NRIs take home loans in India?
Yes, NRIs can apply for home loans in India from most leading banks and NBFCs. The loan amount, tenure, and eligibility depend on the applicant’s income, credit history, and country of residence.
Is it necessary for NRIs to be physically present during the purchase?
No, NRIs can execute property transactions through a Power of Attorney (PoA), allowing someone in India to act on their behalf for registration and other formalities.
What documents are required for NRIs to buy property in India?
– Valid passport and visa
– Indian PAN card
– Address proof (India and abroad)
– Power of Attorney (if not physically present)
– Income proof and bank statements
Can NRIs rent out or sell their property in India?
Yes, NRIs can freely rent or sell their residential or commercial properties in India. However, TDS (Tax Deducted at Source) and capital gains taxes may apply.
What are the tax implications for NRIs buying property in India?
– Stamp duty and registration charges
– Capital gains tax (on resale)
– TDS if they sell the property They can also claim certain deductions under Section 80C and 24(b).
Can rental income from Indian property be repatriated abroad?
Yes, NRIs can repatriate rental income after paying applicable taxes in India, subject to limits set by RBI and compliance with FEMA rules.
Are there any restrictions on the number of properties NRIs can buy in India?
No, there are no restrictions on the number of residential or commercial properties that NRIs can purchase in India. However, they are not allowed to buy agricultural land, plantation property, or farmhouses, unless they get special permission from the Reserve Bank of India (RBI).
