NRI’s Guide To Investing In India
May 27, 2017 Home Trading Steps
Many non resident Indians (NRIs) find the real estate market of India very promising investment wise. And therefore, many NRIs with time and money to invest prefer to park their money in India with a promising return on the investment.
We tell you about necessary things NRIs should know about before investing:
1. FEMA regulations:
As an NRI who is looking forward to investing in India real estate, go through the details on investing in India. Certain rules and regulations are laid out by the Foreign Exchange Management Act (FEMA) regarding NRIs investment in India. Make sure you know all the rules and regulation regarding it. It is better to be aware of them and stay away from any litigation in future.
2. RBIs role in NRI investment:
As an NRI you can only invest in commercial or residential property in India. You cannot invest in agricultural or plantation land. To invest in commercial or residential property, NRIs don’t need any special permission from the RBI. Also, there isn’t any limit up to how many properties an NRI can hold. There are also no tax rules for NRI investors and hence they can go ahead and invest in any number of properties.
NRI investors can hold a joint property with another NRI or an Indian. Also, if any NRI wants to invest in agricultural or farmland, they need special permission from the RBI. The decision to grant the permission differs from case to case.
If you were holding any agricultural or farmland before you were NRI, you can continue to hold it afterwards as well. As an NRI, you can rent out a property and there are provisions to get it remitted after paying Indian taxes.
3. Power of attorney:
To buy a property a lot of paperwork and legal clearances are required. if for some reason the buyer is not able to come to India to carry out the buying process, it can be done with the help of another person who the buyer will appoint and give the power of attorney to.
Before buying make sure you are aware of all the legal formalities that NRIs need to do before investing.
We tell you about necessary things NRIs should know about before investing:
1. FEMA regulations:
As an NRI who is looking forward to investing in India real estate, go through the details on investing in India. Certain rules and regulations are laid out by the Foreign Exchange Management Act (FEMA) regarding NRIs investment in India. Make sure you know all the rules and regulation regarding it. It is better to be aware of them and stay away from any litigation in future.
2. RBIs role in NRI investment:
As an NRI you can only invest in commercial or residential property in India. You cannot invest in agricultural or plantation land. To invest in commercial or residential property, NRIs don’t need any special permission from the RBI. Also, there isn’t any limit up to how many properties an NRI can hold. There are also no tax rules for NRI investors and hence they can go ahead and invest in any number of properties.
NRI investors can hold a joint property with another NRI or an Indian. Also, if any NRI wants to invest in agricultural or farmland, they need special permission from the RBI. The decision to grant the permission differs from case to case.
If you were holding any agricultural or farmland before you were NRI, you can continue to hold it afterwards as well. As an NRI, you can rent out a property and there are provisions to get it remitted after paying Indian taxes.
3. Power of attorney:
To buy a property a lot of paperwork and legal clearances are required. if for some reason the buyer is not able to come to India to carry out the buying process, it can be done with the help of another person who the buyer will appoint and give the power of attorney to.
Before buying make sure you are aware of all the legal formalities that NRIs need to do before investing.
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