At some point, every (NRI) Non-Resident Indian wants to settle in India. The Indian money value in the currency exchange table adds an advantage for the NRIs to buy properties in India.
Associations like CREDAI (The Confederation of Real Estate Developers Association of India) give benefits for the NRIs like arranging spot bank loans and discounts. If you are interested in buying properties in India, Chennai is the place with reliable options to choose from.
As an NRI, you must know some of the important things that have to be taken into consideration before buying any residential properties in India. Let’s take a look at those points.
Power of Attorney
Power of Attorney is a legal document given to the concerned person at the time of buying or selling properties. In case, if you are not available and giving POA to others is possible, but in one condition, that same persons have to sign the documentation work at the Indian Embassy.
The physical presence of the person at that time of the legal transaction will avoid future conflicts. Keeping a lawyer beside this process will also be helpful.
Being an NRI, you can buy residential or commercial properties excluding the agricultural properties. Otherwise, the farming lands should be inherited or gifted to you. Also, you can purchase as many properties as you want, there is no restriction regarding the numbers. Check the property documents like title deed, previous deeds, tax receipts and then registration should be done at the sub-register office.
Funds and Settlements
Being an NRI, you must buy the Indian property strictly by paying in Indian currency. If you don’t have enough money, RBI (Reserve Bank of India) will provide loans up to 80% of the property value. But the RBI approval is granted only after the lawyer’s verification of the clarity in paperwork. And you should also repay the loan amount by Indian currency.
The NRIs are granted certain tax benefits. If you sell the purchased property within 3 years of time, it comes under the short term capital gain where taxes are applicable. If the same property is sold after 3 years, it comes under the long term capital gain where the investment in another property is applicable.
If you own a property in India, you have to pay Income Tax (IT) to India. Taxes are further applicable to the Indian rental properties which are owned by the NRIs. The tax deduction is given for the properties that are purchased through home loan whether it is owned for the purpose of self-use or rental. So, if you are an NRI, you can better make use of these house tax deduction benefits and you will also be eligible to get detections on the loan repayment.
Here is a graphic that sums up the entire post.
The Bottom Line
As an NRI, you should make investments in India by showing valid documents such as the Indian passport, PAN (Permanent Account Number) card, etc. For your additional clarification have a glance at the blog which explains the additional details about documents to produce for buying properties as an NRI.