Documents NRIs Need While Buying Property In India
Wealthy Indians across the world invest in real estate in India. In the recent past, a falling rupee, something that is giving a hard time to the Indian government, has presented a golden opportunity to the non-resident Indians (NRIs) to invest more in this market. However, when investing, NRIs must be mindful of the documents that they must have to complete the transaction.
PropGuide lists the documents NRIs need while buying property in India:
1) Indian Passport of Person Of India Origin (PIO) Card or Overseas Citizen Of India (OCI) Card
NRIs need an Indian passport to invest in property in India. You would need a PIO (person of Indian origin) card if you are an individual, who is not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, but had held the Indian passport at some point. You would need a PIO card if you are a foreign citizen whose father or grandfather was a citizen of India. In other words, if you hold the passport of a foreign country, you need a PIO card. A person who is not a citizen of India, but was eligible to become an Indian citizen before or after partition (or a child of such a person) would need an overseas citizen of India (OCI) card. You can apply for these cards in the Indian embassy or consulate in the country in which you live in. You may need to adduce your parents' birth certificate as proof that you are an OCI or PIO.
2) PAN Card
NRIs need a PAN (permanent account number) Card because they will be expected to file income tax returns if they have rented out the property. Moreover, if the property is sold later, the capital gains arising from the sales would be subject to capital gains tax. Capital gains would be included in the total income while it is being taxed.
Also Read: Documents NRIs Need While Selling Property
3) Power Of Attorney
If you are an NRI who does not visit India too often, you would find it much easier to get registration, execution of the sale, possession and other processes done, if you give a special power of attorney to someone in the city in which you are buying a property.
Documents NRIs need while applying for a home loan
If you are a salaried NRI, who wants to apply for a home loan, you would need two photographs and an address proof of the applicant and co-applicant. Utility bills or driving licence would count as address proof. You need to submit the bank statements of the past six months of your Non-Resident External (NRE) Account and NRO (Non-Resident Ordinary) account in India.
You also need to submit the bank statements of the past six months of your account held in the country in which you work. This should be the account in which your salary is credited. You would also need copies of salary statements of your employer and copies of sanction letter of loans obtained in India and abroad, and self-declaration of residential status. The Indian embassy in your country of residence must certify all these documents.