NRIs Guide to Selling Property in India

Every person invests in real estate for a few reasons. Despite having a place of comfort and safety, it is considered an investment. It offers an amazing comfort of benefits of returns in the way of secondary income source. Being a type of assent, selling this once you hit maturity is quite driving the real estate industry. Well, in case you are planning to sell the property there will not be many hassles besides making sure that you hit the right deal. However, it might not be as easy as it seems for NRIs. If you are an NRI who is planning to sell their property in India, you might be having issues regarding how to get it done. Well, it is advised to get in touch with an expert or consultant who can help you find the right deal.

To whom do you sell the property?

There are many home financing solutions but when it comes to NRIs who wish to sell their property in India, the situation is absolutely different. You should know that you sure are eligible to sell your property- commercial or residential to someone who lives in India or to another NRI or PIO (Person of Indian Origin). Also, you are eligible to mortgage the property to any authorized real estate professional or someone who deals in the financial organization that takes care of home loans. However, you need to remember that if the property is farming or agricultural land, it is only eligible to be sold to a person who resides in the country and is an Indian citizen.

What are the Tax Implications for Selling the Property?

The tax accountabilities for an NRI who wishes to sell their property in India go according to the Foreign Exchange Management Act of India. As per this, the main aspects that count to the amount payable as taxes are the capital gains based on the date of sale of property, charges liable to the society, and pending loans.

Other features that one should know are listed below:

The owner is accountable to pay the short-term capital gains according to their tax bracket if they possess the property for less than three years.

As per section 195 of the Income Tax Act, NRI who is planning to sell their property can claim a tax exemption from the authorities of the county. However, it is important for the application to belong to the same jurisdiction as the candidate’s PAN card with proof of capital gains.

Additionally, As per section 54 of the Income-tax Act, in case an NRI has already sold the property within the three years of ownership and has bought another property, the profit generated by the deal is free of any tax liabilities.

What are the documents required by an NRI when selling the property?

Passport, proof of identity for personal involvement in the transaction

Pan Card, is often needed in case one plans to apply for the tax exemption certificate once the property is sold.

Address Proof, well this is required as a document supporting the address in India and also of abroad has to be provided.

Sale Deed, is a legal agreement between the parties that are selling and purchasing the property legally.

Tax Returns are also required in case an NRI has been earning the money from the property. it is important for one to keep it handy.

Documents from Society are documents that are required to establish that one who is selling the property has no outstanding payments to the society.

Encumbrance Certificate, now those who don’t know about this, it is actually necessary to make sure that the property has no due or outstanding payment to any legal authority.

Understand the repatriation of Indian Property

What we need to now understand is that an NRI who is selling his or her property in India is subjected to a certain list of terms and conditions while repatriating the property that they inherited from an Indian occupant. Once all the conditions are met, NRIs can simply carry on with the procedure of repatriating the sale without any hassle or permission of the RBI (Reserve bank of India).

So, now that you know all that you have to do and all that you cannot, feel free to simply take the advantage of the booming industry of real estate in India. You can simply sell the property as an investment choice.

Get in touch with one of our experts at Connecting NRIs. We have years of experience and understand the stress of selling the property being absent from the home country. we know how to deal with all the tasks and dealing with banks, financial organizations, and property management. therefore, if you are wishing to sell your property in India, you can consider contacting us to seek guidance.

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