Introduction:-
Property sold in India is to be acquired by an NRI under the provisions of the Foreign Exchange Act.
An NRI may sell their residential or commercial property either to an individual resident in India, to another NRI, or to a person of Indian origin (PIO).
If your residential or commercial property is farmland or agricultural developments, then you can only sell to a resident Indian citizen.
In case, your Registration of land, it has been inherited by an Indian resident, there is no specific authorization required by the RBI, but, if, however, it has been inherited by anyone not of Indian origin, the NRI would need to apply for authorization at the central bank.
Property Plan for Selling to NRI
If you are an PIO, you may sell it to a resident of India or NRI without prior permission, but if you plan to sell your property to another PIO, then in advance, you need to get approval from the RBI6).
An NRI looking to sell a property in India must have a passport; it does not have to be Indian passport. The amount of documents to be submitted by an NRI (Non-Resident Indian) is nearly identical to the documentation required of an Indian looking to sell property in India, with some quirks and ends to get right for the former.
Several NRIs are not required to pay income tax in India (their income is taxable in their resident country), they have to submit their PAN details for selling property in India.
NRIs must keep in mind that they are liable to pay capital gains tax when selling a property in India, even if they inherit a property.
Capital gains tax can either be a short-term capital gains tax or long-term capital gains tax, depending on how long an NRI has owned the property.
What a Purchaser Needs to Buy Land from NRIs?
If one is selling property as an NRI, in most cases, a purchaser is required to keep a 20% deducted from the sale price tax (TDS) on capital gains.
If the at-risk property is sold after three years from the date of purchase, an NRI who is selling a property in India is required to pay a uniform 20 % of the value of the property as capital gain.
This includes–PAN Card and Passport, Income Tax returns from the whole period in which the NRI has held the home, Proof of Address (both in India as well as the country in which he/she is currently resident), Property Sale Deed, Housing Society NOC, Allotment Letter, and Certificate of Eviction, as well as the properly approved Building Plan, and Certificate of Occupation by the NRI who owns it. So the Property Registration in India is most Important for NRIs in India to avoid further Complications.
Conclusion:-
Experts feel that the NRIs need to apply here for the PAN card (Permanent Account Number) while planning to purchase property in India, since a certificate for exemption from taxes would have to be filed once property is sold.
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