NRI Corner

We understand your needs and cares when buying a home in India. We invite all non-resident buyers to experience the ease while buying property in India with Goel Ganga Group and its array of tailor-made services for non-resident Indians.

Benefits

At Goel Ganga Group, we understand specific needs of NRI buyers. We are dedicated towards making the property-buying process easy and hassle-free by ensuring complete transparency in all dealings and providing appropriate expertise throughout the process. Our committed NRI Sales Team offers advice on all aspects of investment, loan details, eligibility criteria, and legal processes & documentation. Our comprehensive services range from property buying to leasing to sales.

Q&A

1. Who is an NRI?
A ‘Non-Resident Indian’ (NRI) is a citizen of India resident outside India. Part II - Acquisition and Transfer of Immovable Property in India of Master Direction – Acquisition and Transfer of Immovable Property under Foreign Exchange Management Act, 1999
2. Who is a PIO?
Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who at any time, held an Indian Passport or who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). As per Regulation 2(c) of Notification No. FEMA 21/2000-RB dated May 3, 2000.

3. What are the various facilities available to NRI / OCB?
NRIs/OCB's are granted the following facilities: 1. Maintenance of bank accounts in India 2. Investments in securities/shares of, and deposits with, Indian firms/companies 3. Investments in immovable properties in India (other than agricultural land/ plantation property / farm house).
4. Who can purchase immovable property in India?
A person resident outside India who is a citizen of India may –
(i) acquire any immovable property in India other than agricultural/plantation/farm house. Provided that for acquisition of immovable property, payment of purchase price, if any shall be made out of (a) funds received in India through normal banking channels by way of inward remittance from any place outside India or
(b) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act; Payment of purchase price by any other mode except as provided in the above clause is not permitted
Regulation 3 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000 A person of Indian origin resident outside India may –
(i) acquire any immovable property other than agricultural land/farm house/ plantation property in India by purchase, from out of
(a) funds received in India through normal banking channels by way of inward remittance from any place outside India or(b) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act; (ii) acquire any immovable property in India other than agricultural land / farm house / plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India; (iii) acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India; Regulation 4 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000
Further, no person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years. Regulation 7 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000.
5. Can an NRI sell his property in India without the permission of RBI?
Yes an NRI may his sell his property in India without the permission of RBI as per the below mentioned regulation: A person resident outside India who is a citizen of India may – (i) transfer any immovable property in India to a person resident in India (ii) transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India Regulation 3 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000 A person of Indian origin resident outside India may – (i) transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India; (ii) transfer agricultural land/farm house/ plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India; (iii) transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India
6. Can NRIs acquire or dispose of residential properties by way of gifts
There’s no specific regulation which says that NRI can acquire or dispose of residential properties by way of gift. However, from the below mentioned regulations one may conclude that NRI may acquire or dispose of residential properties by way of gift from / to a person of Indian origin only. Thus, NRI cannot acquire / dispose of residential properties by way of gift from / to any other person other than PIO: A person of Indian origin may acquire any immovable property in India other than agricultural land / farm house / plantation property by way of gift from a person resident outside India who is a citizen of India. Also, a person of Indian origin may transfer residential or commercial property in India by way of gift to a person resident outside India who is a citizen of India. Regulation 4 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000
7. Can an NRI acquire a commercial property in India?
Yes an NRI may acquire any immovable property in India other than agricultural/plantation/farm house – Refer Regulation 3 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000
8. Which Bank accounts can a NRI home buyer transact through (NRE or NRO) and which are beneficial to him?
For acquisition of immovable property, payment for purchase price can be made out of (a) funds received in India through normal banking channels by way of inward remittance from any place outside India or (b) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act; viz. Non-Resident (External) Rupee Account (NRE Account), Foreign Currency (Non-Resident) Account (FCNR Account), Non-Resident Ordinary Rupee Account (NRO Account) Regulation 3 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000
9. Can NRI obtain loans for purpose of acquiring a residential or commercial property in India?
AD banks can grant loans to the account holder of NRE account for (i) personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural / plantation activities or for investment in real estate business (ii) acquiring flat/house in India for his own residential use Regulation 6 of Schedule 1 of FEM (Deposit), Regulations 2016 AD banks can grant loans to the account holder of FCNR account against the security of funds for (i) personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural / plantation activities or for investment in real estate business (ii) acquiring flat/house in India for his own residential use Regulation 9 of Schedule 2 of FEM (Deposit), Regulations 2016 AD banks can grant loans to the account holder of NRO account against the security of funds for (i) personal purposes or for carrying on business activities except for the purpose of relending or carrying on agricultural / plantation activities or for investment in real estate business Regulation 5 of Schedule 3 of FEM (Deposit), Regulations 2016.
10. What is Power of Attorney?
A power of attorney is a legal document giving one person (called an "agent" or "attorney-in-fact") the power to act for another person (the principal). The agent can have broad legal authority or limited authority to make legal decisions about the principal's property and finance. The power of attorney is frequently used in the event of a principal's illness or disability, or when the principal can't be present to sign necessary legal documents for financial transactions.
11. What are the types of Power of Attorney (POA)?
1. Non-Durable POA - The non-durable power of attorney is used only for a set period of time and usually for a particular transaction in which you grant your agent authority to act on your behalf. Once the transaction is completed, or should the principal become incapacitated during this time, the non-durable power of attorney ceases. 2. Durable POA - The durable power of attorney is much more encompassing than the non-durable power of attorney and it can be used to allow an agent to manage all the affairs of the principal should they become unable to do so. It does not have a set time period and it becomes effective immediately upon the incapacitation of the principal. It does expire upon the principal’s death. 3. Special or Limited POA - A special or limited power of attorney is used on a limited basis for one-time financial or banking transactions, or for the sale of a particular property. This is most often used when the principal is unable to complete the transaction due to prior commitments or illness and wants to appoint an agent to act on their behalf. The agent has no other authority to act on behalf of the principal other than what is assigned to them in the limited power of attorney. 4. Medical POA - The medical power of attorney grants authority to the agent to take specific control over the healthcare decisions of the principal should they become incapacitated or unable to do so. This usually takes effect upon the consent of the presiding physician and it allows the agent to authorize all medical decisions related to the principal. 5. Springing POA - A springing power of attorney becomes effective at a future time and only when a specific event occurs, such as the incapacitation of the principal or a triggering event that occurs while the principal is out of the country and unable to act upon it. This type of power of attorney can be durable or non-durable and can encompass any number of affairs the principal wants to assign to the agent.
12. What are the important things to be kept in mind while executing the POA?
Following points should be taken into consideration while executing the POA – (i) Customer shall prepare POA as per defined format. (ii) Executant shall have to paste his/her photograph along with signature on each page. (iii) The POA shall have to be authenticated / adjudicated from Indian Embassy or local authority. (iv) The authenticated/adjudicated POA shall have to be sent to India. (v) In India, the POA holder has to paste his/her photograph along with his/her left hand thumb impression and signature. (vi) Then this document will have to be stamped for Rs. 500/- (ESBTR, Franking, Stamp paper) and notarised from a Registered Notary. Please ensure that a stamp of “Before Me” is affixed on the document. (vii) POA holder and executants Photo ID attach before Notary.
/ r13. What is the Loan sanction process & documentation required (Salaried & Self Employed)?
The documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like copy of the passport and a copy of the works contract, etc. and of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India. Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the Home Finance Company would need a 'representative' 'in lieu of' the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI's parents/wife/children/ close relatives or friends. The documents needed for obtaining NRI home loans are Bank specific. General list of documents are as mentioned below: (i) Passport and Visa (ii) A copy of the appointment letter and contract from the company employing the applicant. (iii) The labour card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation and salary details. (iv) Bank Statements for the last six months List of Classified documents for Salaried and Self Employed NRI Applicants. Banks may have specific requirements apart from the below listed documents. Salaried NRI Applicants (i) Copy of valid passport showing VISA stamps (ii) Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder (iii) Overseas Bank A/C for the last 3 months showing salary credits Self-Employed NRI Applicants (i) Passport copy with valid visa stamp (ii) Brief profile of the applicant and business/ Trade license or equivalent document (iii) 6 months overseas bank account statement and NRE/ NRO account (iv) Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)
14. Can a NRI/PIO acquire agricultural land/plantation property/farm house in India?
Since general permission is not available to NRI/PIO to acquire agricultural land/plantation property/farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India. Regulation 3 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000.
15. What is the tax treatment for income generated from property selling or renting for NRI?PIO/OCI?
The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.
16. Do NRI/PIO/OCI have to file return in India for their property rental income and capital gains tax?
The Government of India has granted general permission for NRI/PIO/OCI to buy property in India and they do not have to pay any taxes even while acquiring property in India. However, taxes have to be paid if they are selling the property situated in India. Rental income earned from such property is taxable in India. Under the provisions of Income-tax Act 1961, every person has to furnish a return of his income on or before the due date, if his total income exceeds the basic exemption limit. Thus, NRI/PIO/OCI will have to obtain a PAN and file return of income if their total income from renting and selling of such property exceeds the basic exemption limit.
17. Tax on income from immovable property selling/renting?
Income from renting of immovable property (being commercial in nature) earned by NRI may be subject to withholding taxes under Section 195 of the Income-tax Act, 1961. If the income is derived from renting of the immovable property (being residential in nature), the same may be taxed in India at the normal slab rates. Further, on sale of the property, the profit on sale shall be subject to capital gains. If they have held the property for less than or equal to 3 years after taking actual possession then the gains would be short term capital gains, which are to be included in their total income as tax as per the normal slab rates shall be payable and if the property has been held for more then 3 years then the resultant gain would be long term capital gains subject to 20% tax plus applicable cess.
18. How does the double taxation avoidance agreement work in the context of tax on income and capital gains tax paid in India by NRI?
Double taxation avoidance agreement is entered into by the Central Government (India) with the Government of any country outside India, for granting of relief in respect of income on which taxes have been paid both in India and the country of residence in India and for avoidance of double taxation of income under the Income-tax Act, 1961 or under the Act in the country of residence. Generally, in case of sale of immovable property, the DTAA with most countries provide that the capital gains will be taxed in the country where the immovable property is situated. Hence, the non-resident will be subject to tax in India on the capital gains which arise on the sale of immovable property in India. Also, letting of immovable property in India would be taxed in India under most tax treaties in view of the fact that the property is situated in India.
19. Does Capital Gains tax apply to NRI/POI/OCI?
Gains derived from the transfer of a capital asset in a particular previous year are taxable under the head Capital Gains. Hence applicability of capital gains is subject to an asset being classified as ‘capital asset’ and is irrespective of the residential status of the person / transferor of the capital asset.
20. How is the rate of CGT computed?
Capital gains tax in case of immovable property is levied as follows: Short-term Capital gains are taxed as per the slab rates applicable to the NRI i.e. @ 30% plus surcharge, if applicable and cess. Long-term Capital gains are taxed @ 20% plus surcharge, if applicable and cess.
21. How does double taxation avoidance agreement work in the context of CGT paid in India on the foreign tax treatment?
In case the non-resident pays any tax on capital gains arising in India, he would normally be able to obtain a tax credit in respect of the taxes paid in India in the home country, if the income in India is also included in the country of tax residence. The availability of such tax credit may vary from each respective country’s DTAA with India. The amount of the tax credit as also the basis of computing the tax credit that can be claimed are specified in the respective country’s DTAA and is also dependent on the laws of the home country where the tax payer is a tax resident.
22. What are the rules governing the repatriation of the proceeds of sale of immovable properties by NRI/PIO as prescribed by the Reserve Bank of India?
In the event of sale of immovable property other than agricultural land/farm house /plantation property in India by a person resident outside India who is a citizen of India or a person of Indian origin, the authorised dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely: (i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the under the provisions of Regulation 3 or 4 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000; (ii) the sale takes place after three years from the date of acquisition of such immovable property or from the date of payment of final instalment of consideration for its acquisition, whichever is later; and ; (iii) the amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in Foreign Currency Non-Resident Account; or (b) the foreign currency equivalent ,as on the date of payment, of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; (iv) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. Regulation 6 of FEM (Acquisition or Transfer of Immovable Property in India), Regulations 2000
23. Can sale proceeds of such property if and when sold be remitted out of India?
Yes, subject to satisfaction of the conditions as specified in Question 22.
24. Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?
Yes, the conditions as specified in Question 22 are required to be fulfilled for repatriation of sale proceeds.
25. What documents are required to be executed if the intended purchaser wishes to proceed for purchase of premises?

The documents required for buying the property are:

- OCI/PIO card (In case of OCI/PIO)
- Passport (In case of NRI)
- Passport size photographs
- Address proof

26. What is the procedure for execution of the agreement for sale?
Before purchasing any immovable property, an agreement of sale should be executed. An agreement of sale is the basic document on which a conveyance deed is drafted. The execution of an agreement of sale needs to be witnessed by two persons capable of entering into contract. The witnesses being from the sides of both parties - one from the purchaser's side and one from the seller's side. The names of the parties to the contract, their age, father's name, and place of their residence should be mentioned. All the owners should be made parties to the contract. The nature of the title held by the seller, including any encumbrance such as lease, mortgage, or charge on the property, should be mentioned. The mode and time of possession and the consideration to be paid should be clearly and specifically mentioned. The stamp duty to be paid on such agreement for sale shall be mentioned in the agreement of sale itself. The Steps involved in registration of agreement of sale are as follows:
1. The sale deed is carefully drafted /prepared by legal expert/advocate
2. Stamp paper is purchased as per the Circle Rate
3. Date is fixed for registration in the Sub Registrar Office
4. The Government registration fee is paid
5. Both the buyer and seller and 2 witnesses visit the sub registrar office on the fixed day for the registration of Deed
6. The Registered Sale Deed can be collected after a week

27. What is the procedure to pay TDS for NRI Home buyers?
The NRI will have to deduct TDS on payment on purchase of immovable property other than agricultural land at the rate of 1% where the consideration for such immovable property is Rs.50 Lakhs or above u/s 194IA: (i) All the details regarding the transaction and TDS on Property are required to be furnished in Form 26QB and this Form 26QB is required to be submitted at the time of payment. (ii) After depositing the TDS, the buyer of the property would also be required to issue Form 16B to the Seller of the property in respect of the TDS deducted and deposited with the government.


With the objective of giving back to society, Goel Ganga Group has established the Goel Ganga Foundation (GGF), a not-for-profit body that is committed to :

  • Providing high quality education to all strata of society;