If an NRI wants to sell off his/her property in India from abroad, there are a few things he/she must take into consideration.
The rules that a NRI must follow to sell his property in India are
1. An NRI can only sell residential or commercial property in India to an Indian resident/ NRI or a Person of Indian Origin.2. If an NRI has agricultural land, plantation property, or farmhouse in India, it can only be sold to the resident(s) of India or an Indian citizen.3. NRI is also allowed to transfer their residential or commercial property to an authorized dealer or housing finance institution in India through a mortgage.4. An NRI cannot transfer their residential and commercial property in India to a party abroad via a mortgage. They will need prior approval from the Reserve Bank of India (RBI) to do so.
The list of documents required by an NRI to sell off the property is as follows:
1. Passport as an Id proof2. PAN Card to apply for tax exemption certificate after the sale of the property.3. Tax returns, if the property yields earnings 4. Address proof of India and abroad5. A sale deed as proof of ownership6. Allotment letter from society, builder or relevant authority7. Documents from society complex to confirm no payments are due8. Approved building plan and Occupation Certificate to assure that the property is cleared of all the dues from legal authorities9. Encumbrance Certificate to ensure that no dues are left with legal authoritiesProperty tax receipts as additional proof. Once you are in possession of all the documents, you can contact NoBroker WhatsApp support on 9241700000. Or You can check out NoBroker NRI Services.
From what I have obserbved is that Non-Resident Indians frequently want to buy and sell real estate in India. NRI selling property in India and investing in brand-new real estate in major cities are two examples. Managing properties in India, whether it be for management, repairs, or paying taxes, may occasionally be quite time-consuming for NRIs. I will delve into the numerous facets of a US citizen selling property in India in this answer.
Procedure for NRI to sell property in India
The following steps must be taken in order to sell an NRI's property in India:
Make a thorough assessment of the property to determine its market value, or just pay a broker or brokerage company to do it for you.
If one is not physically present, a reliable individual may be given the Power of Attorney to complete the sale, providing that the required documentation is present.
Recognise your tax obligations. Whether or not the sale amount has been received in full, capital gains are taxed in the year that the property is transferred.
The payment to the NRI has TDS (Tax Deducted at Source) subtracted at that time. The selling agreement between the NRI seller and the buyer must include all relevant information about TDS and its rate.
Only an FCNR account or an NRE/NRO account is permitted to receive the money.
If the NRI reinvests the property's capital gains in another piece of property or tax-exempt bonds, they are not subject to taxation.
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How to Sell Property in India from Abroad?
Shankar
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February 6, 2021
2021-02-06T09:44:59+00:00 2023-08-01T18:51:59+00:00Comment
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