- Passport and Visa copy of the person who intends to buy property in India.
- Certificate of salary in English, specifying the name, date of entry, designation and salary details.
- Both the national accounts (NRO / NRE / FCNR) and the international statements of the last six months.
- If available in India, when the application form is submitted, a general POA duly attested by the Indian Consulate in your resident country must be submitted. If you are in India, then a power of attorney may be notarised locally.
- A copy of your invitation letter as well as a contract.
- If you are employed in the merchant marine, you must submit a copy of your CDC, as well as your contract sheet with the income data.
- Passport size photographs.
Tax implications for NRIs When Buy Property in India
- An NRI has to disburse stamp duty as well as registration fees during the time of purchase. He is entitled to take advantage of all kinds of benefits on a par with the Indian resident for interest paid on the home loan.
- As the amount of income received from such shares is made under the responsibility of home ownership, then the standard deduction under IT law is applicable according to the standard slab. In this case, the NRI has to pay the applicable tax if it resides in the country where world income is taxable unless the country has a double tax evasion agreement with India.
- The special protection for the NRI is that the amount paid by it for the mortgage loan interest is deductible from tax revenues NRIs with no upper limit. The NRI is legally responsible for paying tax under the capital gains tax of the income tax law in the event you sell your property.
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For a Hassle Free Transaction
- The name of the property must be free of problems, and the seller must have the right specified to sell it, especially if it is inherited or any joint property.
- Without fail check, if there are outstanding water bills or electricity bills or any other unfinished fee with the property. Take a certificate with no seller fees at the time of purchase.
- It is always good to get the bank release letter from the bank in question to check whether the property has been leased in the past or not.
- In terms of construction, the ownership of the approval must have all approvals and permits from the civic authority when you buy property.