Under Section 31 of the Foreign Exchange Regulation Act, 1973, people who are not Indian citizens and companies which are not incorporated in the country, are required to get prior permission of the RBI to acquire, hold, transfer or dispose of an immovable property here.
Can NRI sell property in India RBI permission?
A person of Indian origin resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.
Can NRI sell their property in India?
If you are a Non-Resident Indian, you can sell the property to a Resident Indian without restrictions. If the buyer is a Non-Resident Indian or a Person of Indian Origin (POI), you may need the approval of the Reserve Bank of India (RBI). You are not allowed to sell the property to a foreigner.
Do NRIs pay tax on sale of property?
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. … Tax implications for NRIs are also applicable in the case of inheritance.
Do OCI need RBI permission to sell property?
So, coming to the main question – whether OCI Cardholder can buy, hold, transfer or sell immovable property in India without prior approval of the Reserve Bank of India (RBI)? Yes. OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions.
Can a NRI buy property in India FEMA?
A non-resident Indian (NRI), who is interested in buying a property in India, can do so. However, his property investment must be made in line with the provisions of the Foreign Exchange Management Act (FEMA).
Can NRIs buy residential plot in India?
The procedures for overseas remittances vary
Under these guidelines the NRIs are allowed to purchase residential or commercial properties in India but they are not allowed to purchase any agricultural land, farm house or plantation property in India.
Can NRI sell property to another NRI?
An NRI, for example, cannot sell his farmhouse, agricultural land or plantation property to a non-resident or a person of Indian origin (PIO). … An NRI can sell his residential or commercial property to a resident Indian, another NRI or a PIO.
How can NRI avoid TDS on property sale?
Reduce your TDS Liability by filing application in Form 13
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.
Can NRI selling property in India with power of attorney?
An NRI seller can authorize POA holder to accept payment on his behalf but cannot authorize payment to POA holder. Even if NRI seller authorizes POA holder to receive direct payment, the buyer should avoid such property transactions. … Each of the sellers should execute separate Power of Attorney.
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 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.
Do I need to pay tax if I sell my property in India?
If you are planning to sell your property, you’ll have to pay capital gain tax on the profit earned after considering the inflation and indexed cost of acquisition. … If you’re selling a property in India, the profits you earn are called Capital Gains.
What is the new OCI rule?
OCI cardholders are no longer required to obtain new OCI cards each time they receive a new passport. … The Indian government is additionally introducing a new online portal for OCI cardholders to upload copies of their passports each time they receive a new passport up to the age of 20 and only once after the age of 50.
Can Overseas Citizen of India 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.
Can foreigners sell property in India?
Yes, Foreign Embassies / Diplomats / Consulate Generals can purchase and sell any immovable property other than agricultural land / plantation property / farm house in India with prior clearance from the Government of India, Ministry of External Affairs.