Guidelines for NRI’s to buy a property in India
Are you an NRI looking to buy a Property for sale in Mumbai India? If yes, well, let us tell you that you don’t need any special permission from the Reserve Bank of India for buying a property here. Read on to know more about the process of property buying in India.
The Foreign Exchange Management Act (FEMA), 1999, makes the process of buying property in India, a little complicated for NRIs. While you do not require any permission to buy a residential or commercial property, you require a special permission from the RBI to buy plantation land, agricultural land or farm houses.
What are the Mode of Payments?
For making the payment, either the balance in your NRO, NRE or FCNR account or through direct remittance from your bank abroad can be used.
Can NRIs opt for Home Loan?
Yes. In fact, few banks accept EMI payment made through cheques issued by the NRI’s relatives. However, the most acceptable way is to make payment through direct transfers from the bank account through the Electronic Clearance System (ECS) from the NRE, NRO or FCNR account.
Know about Income Tax!
According to the Indian Income Tax Act, the owner of more than one residential property has to pay income tax, regardless of whether they are an Indian citizen or an NRI. Only if the house is self-occupied, it will be exempted from tax. Since the second/other house(s) are considered as a source of income, they automatically are taxable under the IT Act.
Role of Power of Attorney During Property Purchase!
By now, you must be clear about the process of buying Apartments for sale in Mumbai, India. However, there is something more you need to know. While your presence may not be always a mandate, in some cases your physical presence might is required. If such a scenario, you can appoint a power of attorney (POA). By doing so, your POA can represent you during the execution of the agreement, registration, and possession.
Let consider you are interested in buying property in mumbai, then you can always search on online portals for Flats for sale in Mumbai and choose one which you like to buy. You do this all yourself but it is always advisable that you hire a qualified attorney specialising in real estate. Not only will the attorney represent you, he/she will also ensures that all the requisite legal documents are in place.