How NRIs Can Invest In India
Non-Resident Indians (NRIs) find Indian realty promising. This is the reason with time, young and the settled ones are parking their money in Indian property market with a view of earning returns as well as build a retirement home. Here are a few important things that you should know, being an NRI investor-
Be aware of FEMA regulations
If you are an NRI and want to buy a property in India, then do go through the legalities of purchasing the property in India. There are few legal provisions of Foreign Exchange Management Act (FEMA) owing to buying of immovable property in the country. Though, the inhabitants and the non-residents are treated at par when it comes to real estate investment, stay clear of your rights and legal obligations if any to stay away from litigations.
RBI's role in NRI investment
Reserve Bank of India allows NRIs to invest in any kind of residential or commercial property but not agricultural or plantation land. Any investor need not seek special permission from RBI to invest in housing or commercial properties. There is no limit on the number of immovable assets an NRI can hold. There are no income tax rules as well and investors can go ahead with the quantum of investment they want.
If the investor wishes to invest in farmlands or agricultural land, then he/she has to seek special permission from the RBI after which the decision is made on a case-to-case basis.
Non-resident buyers can invest in India through joint ownership as well where one or both parties can be NRIs.
If by any chance, you own an agricultural property before becoming an NRI, then you can continue to hold that property in your own name, which is otherwise not allowed, after becoming an NRI.
Non-Resident Investors can also rent out their property and can get it remitted after paying Indian taxes.
Importance of power of attorney
If any individual is unable to visit India for real estate transactions, then the formalities of selling or purchase can be done through another individual, who is given the power of attorney.