A Non Resident Indian is a person who does not reside in India but is of Indian origin through bloodline. In every given year if a person has not been living in India and he is of Indian origin for a period of a 182 days then he is considered to be a Non Resident Indian.
Investing in real estate and properties in India :
A person who is of Indian origin but not Pakistani, Bangladeshi or Sri Lankan can invest in property and real estate in India.
Purchase and the Sale of Properties for a Non Resident Indian :
If a Non Resident Indian is buying a property or investing in real estate the purchase funds have to be from inward remittances into the country from another foreign country. The remittance should be through official banking channel. If the Non Resident Indian has foreign currency deposits in a bank or if there are deposits in convertible Indian rupees with a bank then these funds can also be used as purchase finance or to obtain a loan from the bank against the time deposits.
Repayment of Loans: A Non Resident can repay the housing loan taken by using the FCNR deposit to repay the loan or the convertible Indian Rupees to repay the loan. The option to pay repay through fresh inward remittances is also there. The Non Resident Indian can use whichever option is convenient for them.
Sale of properties for Non Resident Indians :
A Non Resident Indian can sell his property but it can only be sold to a Resident Indian in the country or another Non Resident Indian. The original amount that was remitted into the country can be repatriated but the profits cannot be repatriated if there is an increase in the property value. This is however eligible for persons who have bought property on May 26th 1993 or after May 26th 1993. The sale proceeds repatriation can only be done if the property was sold three years after it was bought.
For Non Resident Indians Rentals from property are subjected to Notional tax and 30% of the rentals are deducted as tax from the rent. A Non Resident Indian needs to pay Property tax and Municipal Corporation tax.
Housing finances to Non resident Indians is not given for more than 5 years usually and the housing loan returnable duration is 7 years. Please call for more details.
NRI [Non-Resident Indians] is an Indian Citizen who stays abroad for employment on business or
a person who is not resident in India for a period over 182 days is a non-resident Indian, Contact us for nri property in ahmedabad, nri houses in ahmedabad, nri real estate ahmedabad, nri investment in real estate companies, nri property management services, nri property consultant, nri property buying guide, nri property solutions, nri investment in real estate, nri property services, nri property websites, nri real estate portal, nri real estate services, nri real estate investors in india, nri real estate investment, nri real estate brokers, nri real estate buyers, investment by nri in real estate, nri owning property india.
For Investment in immovable properties:
A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan or Nepal) .He held an Indian passport at any time.OR He or his father or paternal grand-father was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955(57 of 1955).
- Who can invest in Properties & Real Estates?
- Purchase/Sale of Property.
- Investment in proprietorship/partnership firm and limited companies.
- Income from Rents.
- Reserve Bank of India Guidelines .
Who can invest in Properties & Real Estates ?
- Indian citizens
- is not citizen of shri Lanka,Bangladesh,Pakistan,china,Nepal or Iran etc..
2-Purchase/Sale of Property
Purchase:- Purchasing a property in India ranks high in the list of priorities of a non-resident Indian.
(NRI).The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.
Such loans can be repaid in the following manner
- By way of inward remittance through normal banking channel.
- By debit to the NRE/FCNR/NRO account of the NRI/ PIO.
- Out of rental income from such a property.
- Cheques from your local relative’s bank account.
Sale factor:- Indian Citizen is that a PIO can sell immovable property like bungalows, flats, houses etc only to a person resident in India.Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount.
3-Income from Rents
- Rent received : It is the actual rent received by you from your tenants during the financial year starting from Apr to Mar.
- Notional Rent / Deemed Rental income : Other than your self occupied property, for other properties notional rent / deemed rental income needs to be computed. Notional rent is based on market rental value.
- Property Taxes : Any municipal tax / property taxes paid during the financial year is allowed as deduction.
- Standard Deduction of 30% : Income tax Act allows 30% of the rent received / deemed rental income (after reducing property taxes) as a standard deduction towards repairs and maintenance. It is immaterial whether you have incurred such expenses or not, but you are eligible to claim this as deductions from rental income.
4 Reserve Bank of India Guidelines
The Reserve Bank of India (RBI) on 7 August 2014 issued draft guidelines for implementation of Bharat Bill Payment System (BPPS), an anytime anywhere bill payment system. The proposed guidelines describe the basic requirements of operating the BBPS.
Home Loans FAQs for NRIs
Que : For what kinds of property is a NRI eligible for Home loans ?
- To fund the purchase of a plot of land allotted by a society / development authority.
- To purchase a house that is ready-built, under construction or from a second owner.
- For self-construction of a property on a plot of land.
- For renovation or improvement of an existing property in India.
Que : What is the repayment period for a NRI Home Loan ?
The housing finance offered to NRIs normally does not exceed 5 years. However, some HFCs offer loans for a term of 7 years. The repayment for the loan is via EMIs. The EMIs begin only after the entire loan is disbursed. In case of a part disbursement, you pay simple interest at the rate applicable on the loan amount that is disbursed to you.
Que : What is the eligibility for obtaining NRI Home Loans ?
- Qualifications – the NRI applicant has to be a graduate
- Probability of continuing abroad for the loan tenure
- Current job profile & Past work experience
- Probability of servicing the loan with an extended tenure in case you have to return to India.
Que :What are the Tax Benefits applicable to Non-Resident Indians ?
No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail the tax benefits as mentioned under Home Loans.
Que : What are the documents required for obtaining NRI Home Loans ?
- A copy of the passport
- A copy of the works contract (also sometimes referred to as the contract card/labor card)
- The power of attorney (POA)