NRIs forms chunk of investors in Indian real estate. The most favoured investment destination for non-residents are Indian real estate itself. Though it takes persistent effort, the most cherished dream of the Indians are to move out and reside in a foreign country. Once settled abroad the tendency to invest in Indian real estate is common as they have the favorable conditions and policy initiatives here. Since they could avail different benefits like low property price, tax exemption, and retirement benefits the number of investors are increasing day by day. Nostalgic attachment towards the country is also a reason. Many are interested to come back and settle in India. In India we offer more value for money to the investors, with better returns in less time when compared to other real estate markets in the world.It is important, it has to be complied with the requirements of the Foreign Exchange Management Act (FEMA). To ensure everything related to NRI investment is in place you need to know about the documentation process. Here is a list of main documents needed for NRIs to buy a property in India. To ensure everything related to NRI investment is in place you need to know about the documentation process. Here is a list of few documents needed for NRIs to buy a property in India.
Passport or PIO card:
When you are looking to invest in Indian real estate it is a mandate to produce Indian passport or the PIO(Person of Indian origin) card. A PIO card is asked to submit in following situations.
1. If you are a foreign citizen whose father or grandfather was a citizen of India.
2. If you hold the passport of a foreign country, you need a PIO card.
3. 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.
An Overseas Citizenship of India (OCI) card is needed for 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) to buy a property in our country.
PAN Card: As NRIs are expected to file income tax returns, it is a mandate to have a pan card (Permanent account number card). If the property is sold later, the capital gains arising from the sales will be subject to capital gains tax. It is very important if the property purchased is leased out.
Power Of Attorney: Power of attorney is a written authorization to represent another person on behalf of the property holder in private affairs, business or some legal matters. Being an NRI it is not always possible to physically present in India to fulfill the formalities and property transactions. Anyone who holds the power of attorney has the right to act on behalf of the property holder. The person to whom the right is given is called as the Attorney and the person who gives the right is called as the Donor.
It should be executed on the stamp paper signed by NRI, later the deed should be attested by solicitor and has to be send to India for adjudication within three months of execution. As RERA has come into the picture current norms of POA has become strict than before.
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