NRI Corner

NRIs can invest in residential and commercial properties, including apartments, villas, office spaces, and retail shops

NRIs can finance their property purchase through home loans from Indian banks, loans against fixed deposits, or funds from their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts.

* Copy of the Allotment Letter
* Buyer Agreement/Copy of registered agreement/Draft agreement.
* Payment receipt(s) made to the developer/builder

NRIs are liable to pay stamp duty, registration charges, and Goods and Services Tax (GST) during property purchase. They are also subject to income tax on rental income and capital gains tax on property sales.

NRIs must register the property at the sub-registrar’s office in the jurisdiction where the property is located. They must present identification and property-related papers and pay registration fees.

Capital gains tax is calculated by subtracting the indexed acquisition cost and improvement from the sale price. Short-term capital gains (holding period of up to 2 years) are taxed at the individual’s applicable slab rate, while long-term capital gains (holding period over 2 years) are taxed at 20% with indexation benefits.

NRIs must find a buyer, negotiate the price, execute a sale agreement, obtain necessary clearances, and complete the registration process at the sub-registrar’s office, while ensuring proper payment of applicable taxes and repatriation of funds.

Yes, NRIs can claim exemptions under Section 54 and Section 54F of the Income Tax Act. Section 54 allows exemptions on long-term capital gains from the sale of a residential property if the gains are invested in purchasing or constructing another residential property in India. Section 54F allows exemptions on long-term capital gains from the sale of non-residential properties if the entire net sale consideration is invested in purchasing or constructing a residential property in India. Both exemptions require the new property to be purchased within one year before or two years after the sale, or constructed within three years of the sale.

The buyer must deduct TDS at the rate of 20% (plus applicable cess and surcharge) for long-term capital gains, and at the applicable slab rate for short-term capital gains, before making the payment to the NRI seller. The NRI can claim a refund if the actual tax liability is lower than the TDS deducted, by filing an income tax return in India.