The Indian real estate market is appealing to domestic buyers and attracts a significant number of Non-Resident Indians (NRIs). NRIs often consider buying property in India for investment, future retirement plans, or to stay connected with their roots. However, the process of buying property in India can be complex due to various regulations and requirements. Here’s a comprehensive guide to help NRIs navigate the process of purchasing property in India.

1. Understanding Eligibility & Regulations

Types of Properties NRIs Can Buy:

NRIs are allowed to purchase both residential and commercial properties in India. However, they are not permitted to buy agricultural land, farmhouses, or plantation property unless it is inherited or gifted.

Legal Requirements:

  • FEMA (Foreign Exchange Management Act):

The purchase of immovable property in India by NRIs is governed by FEMA, which specifies the types of properties NRIs can purchase and the method of payment.

  • RBI Regulations:

The Reserve Bank of India (RBI) regulates the acquisition and transfer of immovable property by NRIs under the FEMA guidelines.

2. Financing the Purchase

Mode of Payment:

  • NRIs can make payments through funds received in India through normal banking channels.
  • Payments can also be made from the NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account.
  • Payment cannot be made in foreign currency, traveler’s cheques, or foreign currency notes.

Home Loans:

  • NRIs are eligible for home loans in India. Major banks and financial institutions offer home loans to NRIs subject to the fulfilment of certain conditions.
  • Documents required typically include a passport, visa, employment details, salary certificate, and bank statements.

3. Documentation & Due Diligence

Essential Documents:

  • Proof of Identity: Passport, PAN card
  • Proof of Address: Overseas residential proof
  • Power of Attorney: If the NRI is not present in India, they must assign a Power of Attorney to a trusted person to complete the property transaction on their behalf.

Legal Due Diligence:

  • Verify the title of the property to ensure it is clear and free from any disputes.
  • Check for approvals and licenses from the local municipal authority.
  • Ensure the builder has received all necessary permissions and the property complies with all regulatory norms.

Read also: How to Choose the Right Residential Project in Lucknow for Your Family

4. Tax Implications

TDS (Tax Deducted at Source):

  • When an NRI sells property in India, the buyer is required to deduct TDS at the rate of 20% for long-term capital gains and 30% for short-term capital gains.
  • NRIs can claim benefits under the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence.

Capital Gains Tax:

  • Long-term capital gains are applicable if the property is sold after holding it for more than two years.
  • Short-term capital gains are applicable if the property is sold within two years of purchase.

5. Repatriation of Sale Proceeds

  • NRIs can repatriate the proceeds from the sale of property in India under certain conditions:
  • The property must be purchased following FEMA regulations.
  • The amount to be repatriated cannot exceed the amount paid for the property.
  • NRIs can repatriate up to two properties’ sale proceeds.

Kiara Residency: A Prime Choice for NRIs

For NRIs looking to invest in the Indian real estate market, **Kiara Residency** in Lucknow presents an excellent opportunity. This 2 BHK residential society comprises 288 apartments spread across three towers with stilt and 16 floors. Located in Sushant Golf City, Lucknow, Kiara Residency offers an affordable blend of thoughtful floor plans, attentive layout, and modern elevation amidst a distinctive landscape.

Key features of Kiara Residency include:

Stunning Views:

Enjoy breathtaking views of the international standard 18-hole Golf course, adding a touch of luxury to your everyday life.

Affordable Luxury:

Kiara Residency is designed to enrich the quality of your life by offering luxury within reach.

Modern Amenities:

The project includes a range of modern amenities and facilities to cater to your family’s needs.

Kiara Residency is an excellent choice for NRIs looking for a blend of affordability, luxury, and modern living in a prime location. Investing in Kiara Residency not only provides a luxurious living experience but also promises significant appreciation in value, making it a wise investment for the future.

In conclusion, while buying property in India as an NRI involves understanding various regulations and processes, it can be a rewarding investment. With careful planning, due diligence, and professional advice, NRIs can find the perfect property that meets their needs and enhances their connection to their homeland.