Table of Contents
Can NRI hold property in India?
As an NRI you will not need any special permission to buy an immovable property. If you hold a foreign passport, you can buy property in India provided you have a PIO (Persons of Indian Origin) card or an OCI (Overseas Citizen of India) card. PAN Card: This is mandatory for property transactions.
How can NRI sell property in India?
Documents required by NRI for selling property in India:
- Passport- It serves as a proof of identity for the person involved in the transaction.
- PAN Card- It is required if one plans to apply for a tax exemption certificate after the sale of the property.
Can Overseas Citizen of India sell property?
So, coming to the main question – whether OCI Cardholder can buy, hold, transfer or sell immovable property in India without prior approval of the Reserve Bank of India (RBI)? Yes. OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions.
Can an NRI own an inherited house in India?
In case the NRI decides to keep the inherited house property vacant, for the purpose of residing in it during his visit to India, he does not have to offer any income for taxation on such property.
How can an NRI repatriate money from India?
An NRI can repatriate the sale proceeds up to one million dollars every year, without any approval from the RBI, provided taxes in India have been paid for the sale of such property. However, special RBI approval will be needed, if the amount to be remitted exceeds one million.
What are the tax implications when an NRI buys a property?
In case the property is sold by the NRI, the person who buys the property will have to deduct income tax under Section 195 of the Income Tax Act, on the taxable amount of capital gains at the rates applicable.
Is TDs applicable to NRI sellers in India?
Indian resident sellers are supposed to pay a Tax Deducted at Source (TDS) of 1\% of sale proceeds from a property u/s 194IA, but it is not applicable for NRI sellers.