An NRI’s Guide to Buying Property in India
To engage in financial and property purchases in India, NRIs must follow certain rules. It will avoid wastage of money and help you invest right. Today we will study the status of NRI in India, in addition to investment potential for NRIs. We will also look at real estate laws and properties in case you’re interested in starting a business or investing in Indian companies.
Who is an NRI
Are you confused if you need an NRE, NRO or NRI account to invest in properties in India? Distinguishing the differences between NRE, NRI and NRO will help you take the right decision!
NRI is a non resident Indian who works or lives in foreign countries with an Indian citizenship. NRE refers to Non Resident Rupee and NRO is Non Resident Ordinary Rupee.
What to Invest in When you’re an NRI
Wondering what are your options for investment if you’re an NRI? Making the right investment is crucial for Non Resident Indians as it can help you save huge sums in the long run. Check the NRI’s guide to buying property in India for investments.
· Direct Investment
If you’re a Non Resident Indian, you can hold direct shares in residential and commercial properties. It can be conducted on a repatriable or non-repatriable basis.
· Portfolio Investment
A scheme exclusively designed for NRI’s buying property in India, portfolio investment is simple. When an NRI buys secondary shares through brokers in an Indian company, it is referred as portfolio investment.
· Government Bonds
If you’re an NRI, you can also invest in government certifications and establishments via UTI remittances. It can be funded by your domestic or international bank accounts.
Real Estate Property Types for NRIs
Non Resident Indians do not have any restrictions on the number of properties they can buy. However, agricultural land cannot be owned until inherited by NRI. If you’re a Non Resident Indian, you can invest in homes and office spaces for your business without any halts.
All the real estate deals and contracts for Non Resident Indians must be verified and credited through the Foreign Exchange Management Act or FEMA.
Rules and Regulations for NRI buying Property in India
According to the Indian Regulatory Act, NRI does not need any other proof than the passport when investing in properties in India. The Reserve Bank of India (RBI) simplified the property rules for NRIs to boost foreign investments.
NRI’s Guide to Tax Debits and Credits
According to Section 80 C, NRI can be exempted from Taxes up to 1 Lakh INR. Moreover, NRIs can own two properties with tax exemptions for one property under the self-occupied property. If you’re an NRI, you will also be exempted from the Wealth Tax
Moreover, Non Resident Indians are also exempted from taxes for money in NRE and FCNR accounts. However, the cash in NRO is taxable for NRIs.
The Real Estate Expert Says …
Our definitive NRI’s Guide to Buying Property in India is designed for helping you take the right decision. If you’re wondering how to invest in the commercial real estate for a new business, talk to our experts right NOW!