Everything You Need to Know about NRI/PIO Buying Immovable Property in India
The basic guidelines for NRIs and PIO to purchase land and immovable properties in India
The subject of the purchase of the immovable property by PIO and NRIs is a concern of RBI. They have issued an important law related to it. This law is generalized where an NRI or a PIO can purchase land and immovable property by fulfilling certain conditions, like creating enough documentation where he can declare his income tax returns like PAN card etc. Simple terms and conditions follow this type of regime where they tell any NRI to come up with certain documents like passport, citizenship proof, proofs related to the NRI status or PIO status and bank accounts etc. This generalized law is primarily applicable to all the residential properties and commercial properties for direct use.
What Seems Simple Can Become Complicated If a Competent Law Firm Is Not Handling Your Case
The rules related to the purchase of immovable property by NRIs and PIOs attract many sub-clauses as well. Sometimes these sub-clauses can bring in troubles for you, and this is why, it is important to hire a firm like Knowledgentia, as they are experts in handling NRI and PIO affairs. Taking care of the immovable property purchased by NRIs is an important part of their profile. They can ease out the probable complications first hand before you move in to start the formalities of the purchase.
Areas Where NRIs Are Barred from Purchasing a Land
If an NRI or a PIO is planning to purchase a farmhouse, agriculture land or a plantation property in India then, he is required to take special permissions from the Government of India. Here they may ask for the commercial aspects associated with the purchase deal. They can demand a business proposal that the party is planning to do on the stipulated land. Here we should understand the terms related to the repatriation. Repatriation is a term that refers to the capital that travels from abroad to Indian soil. Every NRI or PIO should treat it as the fund of Repatriation. They can declare this fund in India, later on, they can take care of various clauses and conditions with the help of a competent law firm like Knowledgentia. Here one condition is very clear; no payments under any condition can be made in foreign currency when you are purchasing an immovable property in India.
Capital Gain Tax Is Applicable on the Sale of the Land
As an NRI or PIO, you are not exempted from the capital gain tax if you are selling the property. The same thing is also applicable to the earnings through rentals and other commercial activities. On the note of summary, we can say that as an NRI when you purchase an immovable property in India then you are at par with any regular Indian citizen. In the first step, you need to do the sufficient documentation to come at par with an Indian citizen. After doing this you are responsible to pay necessary taxes as they will be levied upon you by the authorities on various levels.