Things NRIs Should Keep In Mind While Buying Property in India

Owning a house in India as an NRI can be very close to their hearts and also help them stay connected to their roots and culture. Hence it is not a wonder that a non-Indian resident wants to buy a property in India. The Indian real estate sector has really seen a price correction in recent years and now it is easier and more favorable to buy a property in India with favorable currency rates. Just because you moved to another country doesn’t mean that you stop buying residential property in India. NRI’s play a vital role in Indian real estate over the past years. Seeing all the rules and regulations involved in the process one might assume it is very difficult to buy a property as an NRI. The NRI investments in buying a property in India will rise by 12% in the near future costing up to 14.9 billion dollars. Moreover, NRIs can even apply for home loans to bridge their funding shortfall. This particular article will help you simplify the process and get a better understanding.

Property’s Nature

Apart from agricultural lands and farmhouses, an NRI can buy any immovable property in India. To invest in any agricultural land the NRI should get approval from the RBI and the government.

Taxation

The TDS (tax deducted at source) calculation takes place when an NRI sells a property in India. This is done at the rate of 20.6% on long-term capital gains and 30.9% on short-term capital gains. Selling a property within the time limit of 3 years then it is called short-term capital gain and selling the property after 3 years is called long-term capital gains where taxes are applicable. NRI buying property in India is even offered certain tax benefits.