Category: NRI Property Investment

Guidelines For Transfer Of Property For NRIs

NRIs very commonly inherit immovable property from their family or relatives in India. Not knowing the correct procedure for transferring the inherited property into their name can lead to unwanted legal complications and added expenditure. Here are some common FAQs that will help you make a hassle-free transfer of property that you might have recently inherited.

What is the procedure for transfer of property?

The transfer property is done through mutation of revenue records or the transfer of khatha. The mutation of revenue records involves updating the details of the new owner of the property in the record books of the concerned Municipal Corporation or village panchayat.

What documents do I need to apply for a transfer of property?

  • Registered Will: Even though it is not mandatory to register a Will, registering a Will makes it a valid legal document. Make sure you have a registered Will to avoid any future complications.
  • Succession Certificate: A succession certificate from a competent court is required in the absence of a will. In order to obtain a succession certificate, heirs need to submit the death certificate of the deceased, birth certificates of the heirs, bank statement of the heirs, and a copy of their ration card(s).
  • Original Purchase Deed and Registration Documents: Make sure you have the original purchase deed and registration documents. For older properties without original purchase deeds, the heirs need to obtain certified copies of the title deed from the concerned land registrar’s office.
  • Encumbrance Certificate: The encumbrance certificate contains records of all the transactions that were made concerning that property i.e., sales, lease, mortgage, gifts, partition, and release. Make sure you have an updated encumbrance certificate.
  • Khatha: Khatha bears record of the property owner’s details such as his name, type of property, and taxation records. The khatha reflects the payment of annual property taxes, and differs from the property registration document which shows the sale or purchase of the property.

How can I avoid future legal issues or complications?

  • Make sure that a Will is made and duly registered. A fresh Will can be drafted and registered anytime. For legal purposes and transfer of property, the last registered Will is the one that is considered.
  • Make sure that the required documentation is done for individual property in order to establish ownership. It is always better to keep the title of the property updated in the current owner’s name, even if there are no disputes among family members.
  • Make sure that matters pertaining to property sharing and inheritance are discussed and agreed upon by all siblings to avoid future legal hassles and other complications.

Owning and transferring the title of a property in India can be a relatively easy process, provided you get all the documentation right. It is advisable to seek the aid of a reputed legal counsel or real estate agent in order to handle all the paperwork as you most probably will not have the time to apply for the transfer procedure yourself.


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All You Need To Know About NRI Property Investment In India

The Indian government, through a general permission issued by the Reserve Bank of India (RBI), allows a non-resident Indian (NRI), and a person of Indian origin (PIO) to acquire immovable property in India. However, there are certain restrictions on NRI property investment in India that every NRI and PIO ought to know before deciding to invest their hard earned money back home.

Guidelines For NRI Property Investment In India

If you fall under the above two categories please read the following points to know all about NRI property investment in India.

  • The general permission issued by RBI covers only the purchase of commercial and residential property.
  • NRIs and PIOs cannot purchase agricultural land, farmhouses or plantation property in India without specific permission from RBI.
  • An NRI or a PIO can purchase any number of residential or commercial properties.
  • For a general purchase, an NRI is not required to file any documentation or report with the RBI.
  • An NRI or a PIO is at liberty to lease out an immovable property in India without specific permission from the RBI, provided that the lease period is not more than five years.
  • A foreign citizen of non-Indian origin, who is residing outside India, cannot purchase any immovable property in India. However, he or she is permitted to inherit property from a person who was a resident in India.
  • An NRI or A PIO is permitted to acquire immovable property in India by way of gift either from an Indian resident or another NRI, provided that the property is residential or commercial in nature.
  • NRIs and PIOs cannot possess agricultural land, plantation property, and farmhouses in India by way of gift.
  • Foreign companies can purchase immovable commercial property in India for the purpose of setting up branch offices.
  • NRIs who have acquired property in India are permitted to rent it out without any specific permission from the RBI. The earnings in the form of rent can be remitted to their NRO or NRE accounts or credited abroad.

In case of converted property, you need to make sure that the conversion took place more than five years. The person converting an agricultural land is required to use it for a minimum period of five years for the purpose of conversion, failing which the conversion would be automatically cancelled.

Now that you know all about NRI property investment in India, make sure you verify all the documentation before you close the deal. Keep in mind that as an NRI or a PIO you are eligible to only purchase residential or commercial property.


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ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Helpful Guidelines For NRI Property Investment

The depreciation of the Indian rupee against the US dollar, simplification of the procedure for NRIs to acquire immovable property in India, and the special tax benefits are some of the reasons why investing in Indian real estate is a lucrative venture for NRIs in the current global economic scenario. Here a few important things you should know about NRI property investment in India.

NRI Property Investment Options

According to RBI and FEMA regulations an NRI is eligible to acquire or carry out the following types of real estate transactions in India.

  • Purchase any immovable property except agricultural land. This means NRIs can only buy commercial or residential property.
  • Acquire any commercial or residential property in India by virtue of a gift from an Indian resident, person of Indian origin, or an Indian citizen residing outside India.
  • Inherit any property including agricultural land from an Indian resident, person of Indian origin, or non-resident Indian, provided he does not sell the agricultural land.
  • Transfer his or her immovable nonagricultural property to any resident of India by sale.
  • Gift or bequeath any agricultural or plantation land, or farm house to any resident of India.
  • Gift or bequeath any residential or commercial property to any person either residing in India or abroad, or to any person of Indian origin.

Financing Options For NRIs

Financial institutions readily provide home loans to NRIs as they are more likely to make prompt repayments. According to RBI guidelines, an NRI can avail the following benefits for NRI property investment in India.

  • An NRI is eligible to a home loan of up to 80 % of the cost.
  • An NRI can remit the down payment directly from the country of current residence through NRO/NRE accounts in India.
  • The payment of the principal and the interest amount to the financial agency can also be done through similar channels.

Taxation Policies

An NRI will have to pay for stamp duty as well as registration fee at the time of purchase. NRIs are eligible to the benefits on the interest paid for home loan at par with Indian residents. In case the property is leased out, the NRI will have to pay the applicable tax if he or she is residing in a country where worldwide income is taxable and which has not signed a Double Tax Avoidance Agreement with India.

In case an NRI sells his or her property then he or she has to pay the capital gains tax as applicable under the Income Tax Act. A special benefit for NRIs is that the amount payable as interest of home loan is deductible from their taxable income without upper limit.

Now that you have the basics of NRI property investment covered, all you need to do now before you acquire a new property is to verify the details of the property such as the property title, no due certificate, relevant civic authority construction approvals, and bank release letter if applicable.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!