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Gera Developments NRI Buying Process

For registration, the NRI applicant should go to the registration office in the assigned area. The NRI should carry all the original documents along with photocopies of each.

a) Documents required for registration are:

  • Property Card of the land on which the property is being registered is situated.
  • No Objection Certificate (NOC) under the Urban Land Ceiling Act if the area of the land transferred exceeds the maximum limit.
  • Contact details such as phone number, email address, person to contact in your absence etc.
  • If the land belongs to a government or semi-government body then a No Objection Certificate from the government or that particular semi-government body must be produced.
  • If the property being sold/purchased is in an old building and the benefit of depreciation is to be claimed on the market value, following papers are required to be submitted:
  • Municipal Assessment Bill of the building
  • Building Completion Certificate
  • Original registered agreement between the builder and original purchaser of that flat or of any other flat in that building

b) If necessary, all the documents should be reviewed by a lawyer within 15 working days.

c) Agreement is to be done within 15 days of booking.

d) Stamp duty must be paid before the execution of agreement and as per the market value.

e) Timely payment installments as per the work stages.

f) Possession agreement is required to be done between the buyer and the seller.

g) Keys will be handed after possession agreement and upon completion of the payment.

NRI Taxation

To be eligible for NRI status the person should be a non-resident under the Income Tax Act. He should be a citizen of India or his parents or grandparents should have been born in undivided India. NRIs based outside India can continue to enjoy non-resident status in India if their presence in India is more than 60 days but less than 182 days, even if their stay in India during the past four financial years is 365 days or more.

The Government of India has entered into tax treaties or Double Tax Avoidance Agreements (DTAA) with several countries where Indians reside in large numbers. NRIs can benefit from this tax because these tax treaties often provide lower tax rates and exemptions in addition to those available under the domestic tax provisions.

NRIs are taxable on income accrued or received in India. Income earned and received outside India is not taxable in India. If an NRI comes back to India and loses his NRI status, he will not be subject to tax in India on his world-wide income if either of the following two conditions are satisfied:

1. He has been in India for not more than 729 days during the preceding seven financial years;
2. He has qualified as a non-resident for nine out of 10 preceding financial years.

An NRI coming back to India after a long stay overseas may be exempted from tax for first two years only if the above mentioned conditions are satisfied.

Tax Exemptions

The Income-Tax Act has provided procedure under section 197 whereby an NRI can apply to the Assessing officer to issue specific certificate authorizing the payer of income to deduct tax at a lower rate or nil rate as the case may be. The NRI should estimate his income, tax liability and likely TDS and then apply for partial or complete Tax Exemption Certificate. Any NRI from whose income the tax is likely to be deducted can apply to obtain exemption for tax deduction on the basis that his/her income in India is less than Rs.1, 50,000/- per year or if the likely to be deducted tax is more than the estimated tax liability.

The following two deductions are available under the Income Tax Act, 1961.

Standard Deduction: 30% of net annual value is deductible irrespective of any expenditure incurred by the taxpayer.

Interest on Borrowed capital: Interest on borrowed capital is permitted as deduction if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property. If the person has occupied more than one house then in that case only one house (according to his choice) is treated as self-occupied and all other houses will be "deemed to be let out".

Property Buying

Purchase of immovable property

A person resident outside India can purchase a property under Foreign Exchange Management Act (1999).Under this section an NRI can hold, purchase, and invest in immovable property in Indian currency if such currency or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.

Mode of payment for purchase:

Payment by NRI can be made out of:

  • funds held in NRE/ NRO/ FCNR account maintained in India
  • funds remitted to India through banks

The company receiving the investment must report to the RBI in form FC-GPR within 30 days of the issue of shares.

No payment can be made by foreign currency or traveler's cheque. Payment cannot be made outside India.

Sale of Immovable Property

NRIs holding Indian passport has the permission to sell the property in India subject to certain conditions. He can transfer any immovable property to a person resident in India. The Non-Residents need to take prior approval of the RBI for sale of residential property in India acquired with specific permission of the RBI to a person resident in or outside India. .

NRIs have been allowed to repatriate original investment in equivalent foreign exchange in residential properties only after obtaining prior approval subject to a maximum of two houses under certain conditions..

Brokerage, legal fees and other expenses incurred in selling the property would be allowed as a deduction from the taxable capital gains.

*Disclaimer- Data provided above is strictly for informational purposes only. We do not make any claims on accuracy of information.

About Gera

Welcome to Gera Developments, creators of premium residential
and commercial projects.

We strive for excellence and our
main objective is not just to meet the expectations of our customers but to surpass them.