If you are an NRI and thinking about buying a property in India, then it is very much needed for you to get the right information about the NRI property registration process in India. The better you know about property registration, the better you will be able to make decisions on it. For an NRI, one should have a clear idea about property registration in India and its important aspects. As an NRI, you should have knowledge of how to get your documents if you need to have them executed. for an NRI, the property registration process is not so complicated. Before buying a property in India as an NRI, you should verify it and do the research online as needed. As you finish the property registration process in India, you can be sure that you have done the right thing.
What is property registration for NRIs:
If an NRI wants to buy property in India, then the property registration process is used to transfer the legal ownership of the property to the new owner. In India, the Property Registration Act, 1908 is still in force in case of property registration. The main purpose of making this law was to maintain all information about real estate property.
Required documents while registering a property:
For an NRI, he or she must have an Indian passport for property registering in India. If you are a foreigner of Indian origin, then your PIO (person of Indian origin) card is required. In other words, we can say, if you are holding a passport of a foreign country then you need a PIO card when registering property in India. If an NRI person have rented his or her property, then he or she must possess a PAN card for filing an income tax return. An NRI who has not enough scope to visit India always, then you would find it much easier to get the registration done, selling, possession of the property, and if you give the power of attorney to your preferred person in the city in which you are buying a property.
Documents for a home loan processing:
If an NRI person wishes to apply for a loan, he or she requires submitting the photo and addressing the credentials of the applicant and co-applicant. Utility bills and driving license will be considered as address proof documents. You must also submit a six-month bank statement in the country in which you operate the account. You need to submit your salary statement and a copy of the letter of approval for the loan in India and abroad and self-declaration of residential status.
Physically presence of NRI when registering a property:
The whole registration process can be completed even if the NRI person is not present physically in India, but for that, you have to prove your power of attorney at your nearest Indian embassy and mail the proof to India. The entire process will be completed under the supervision of the person you designate as the power of attorney.
NRI property tax for Indian Property:
The tax deposit methods of NRIs and resident Indians are different. So, NRIs who purchase a property have to deduct 1% income tax if the property value is more than fifty lakhs and he or she has to pay the amount to the income tax department. But if you are purchasing the same valued property from another NRI then the tax rate is much higher than previous.
So, in the end, it is a matter of pride for a foreigner to buy a property in India but at the same time, he should know about various pros and cons and then move on to property registration.