There are no specific guidelines under FEMA for purchase of property by NRI jointly with resident Indians. An NRI is allowed to sell or gift any immovable property to any resident Indian. Any property can be gifted to NRI by an NRI other than agricultural property, plantation or a farmhouse.
Can a foreign national of Indian origin sell property in India?
NRIs and PIOs can freely sell / gift any residential or commercial property held by them in India to a person resident in India or NRI or PIO. Foreign Nationals of non-Indian origin have to obtain the approval of RBI for selling of property in India.
Do you need OCI to sell property in India?
According to the latest rules regarding the OCI cardholders, Indian origin people who moved out from India for employment or business, NRIs with foreign citizenship, and OCI (Overseas Citizenship of India) cardholders are not allowed to buy and sell properties in India.
Do NRIs have to pay TDS on property?
If an NRI is selling property in India, the buyer is required to deduct TDS at the rate of 20% in case of long-term capital gains. However, if the property is sold before two years, TDS shall be deducted at the rate of 30% as a short-term capital gains tax.
Can NRI hold property in India?
In addition to the purchase of property, an NRI is also allowed to acquire any residential or commercial property by way of gift from any of his NRI, OCI or a resident relative. Though an NRI is not allowed to buy agricultural land etc. in India, he is allowed to inherit the same from any person resident in India.
Can NRI sell property in India RBI permission?
Any sale or gift of a property by a foreigner without prior permission of the RBI would be illegal, the Supreme Court has ruled.
Can resident Indian buy property abroad?
Resident individuals can purchase property abroad using funds held in an RFC account without prior RBI approval. Resident individuals are also permitted to purchase property overseas jointly with a relative who is resident outside India, without prior RBI approval.
Can NRI sell property to another NRI?
An NRI can sell his/her residential or commercial property to either a person residing in India, another NRI or a person of Indian origin (PIO). … However, if the property is an agricultural land or farming development, it can only be sold to a resident Indian citizen.
Can NRI selling property in India with power of attorney?
“A Power of Attorney (POA) plays a significant role in the real estate dealings of the Non-Resident Indians (NRIs). As per the Registration Act, 1908, whenever an NRI sells or purchases a house property, both parties must be present physically while registering the transaction.
Can NRI sell property in India without PAN card?
Property is an important resource, and for ages, it has been an exceptionally time-consuming and taxing process to sell property in India from overseas. … In order to enter into a property transaction, it is not necessary for an NRI or a PIO (origin being dated up to the fourth generation of ancestry) to have a PAN card.
How can NRI avoid TDS on property sale?
To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS.
How can I avoid tax on property sale in India?
Exemptions from your Gains that Save Tax Section 54F (applicable in case its a long term capital asset)
- Purchase one house within 1 year before the date of transfer or 2 years after that.
- Construct one house within 3 years after the date of transfer.
- You do not sell this house within 3 years of purchase or construction.
How can I avoid paying tax on selling property in India?
Purchase Capital Gains Bonds under Section 54EC
Capital gains invested in these bonds are exempt from the capital gains tax. If you invest the entire amount you got by selling a property, then you don’t have to pay any capital gains tax.
Can green card holder buy property in India?
A: No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.
Do NRI pay property tax in India?
NRIs who are selling house property which is situated in India have to pay tax on the Capital Gains. The tax that is payable on the gains depends on whether it’s a short term or a long term capital gain. … In such a case the cost of the property shall be the cost to the previous owner.