For Indian residents, documents typically include proof of identity (Aadhar card, PAN card), proof of address (passport, utility bills), and income proof (salary slips, income tax returns). Non-resident Indians (NRIs) additionally need copies of their passport, visa, and overseas address proof.
- Documents
- Taxes
- NRI
- Property Investment Tips
Documents
What documents are required for buying property in India?
What is the importance of property documents like Sale Deed and Title Deed?
The Sale Deed is a legal document that transfers ownership from the seller to the buyer, while the Title Deed confirms the ownership rights of the seller. These documents are crucial as they establish legal ownership and are required for property registration.
How can I verify the authenticity of property documents?
It's essential to conduct a thorough verification process through legal experts and conduct due diligence. Verify documents such as Sale Deed, Title Deed, Encumbrance Certificate, and approved building plan with relevant authorities.
Can I buy property without physical presence in India?
Yes, NRIs and PIOs (Persons of Indian Origin) can buy property in India without physical presence. They can appoint a representative through a Power of Attorney to complete the transaction on their behalf.
Taxes
What are the taxes applicable when buying property in India?
Buyers must pay Stamp Duty and Registration Charges, which vary by state. Additionally, Goods and Services Tax (GST) may apply to under-construction properties. Property owners must also be aware of Property Tax levied annually by local authorities.
Are there any tax benefits for homebuyers in India?
Yes, homebuyers can avail tax benefits under Section 80C of the Income Tax Act for principal repayment of home loans, and under Section 24(b) for interest payment. First-time homebuyers may also benefit from additional deductions under Section 80EEA.
Do NRIs have to pay taxes on property income in India?
NRIs are subject to tax on rental income earned from property in India. The tax rate depends on the rental income slab, and they must file an income tax return in India if their income exceeds the taxable threshold.
What are the implications of selling property on capital gains tax?
Capital Gains Tax applies when selling property in India. Short-term capital gains (property held for less than 2 years) are taxed at applicable income tax rates, while long-term capital gains (property held for more than 2 years) are taxed at a flat rate with indexation benefits.
NRI (Non-Resident Indian) Investments
Can NRIs buy agricultural land or farmhouses in India?
NRIs are restricted from purchasing agricultural land or farmhouses in India, except in specific circumstances with permission from the Reserve Bank of India (RBI) or state authorities.
What are the guidelines for repatriation of funds from property sale by NRIs?
NRIs can repatriate the sale proceeds of property after deducting applicable taxes, subject to certain conditions. They must provide documentary evidence, including Sale Deed and Tax Clearance Certificate, to authorized banks for repatriation.
Can NRIs take a home loan for buying property in India?
Yes, NRIs can avail home loans for buying property in India, subject to fulfilling eligibility criteria set by banks or financial institutions. They must provide necessary documents such as passport, visa, and overseas employment details.
Are NRIs eligible for Pradhan Mantri Awas Yojana (PMAY) benefits?
NRIs are not eligible for PMAY benefits, as the scheme is specifically designed for economically weaker sections and middle-income groups of Indian residents.
Property Investment Tips
What are the factors to consider before investing in real estate?
Key factors include location analysis (proximity to amenities, infrastructure development), builder reputation, legal due diligence (property documents verification), market trends, and potential for rental income or resale value appreciation.
How can I assess the credibility of a real estate developer?
Check the developer's track record, completed projects, financial stability, adherence to timelines, and reviews from existing customers. Verify approvals and licenses from regulatory authorities.
What are the benefits of investing in under-construction vs. ready-to-move-in properties?
Under-construction properties may offer lower prices and flexibility in payment terms, while ready-to-move-in properties provide immediate possession and avoid construction delays. Choose based on personal preferences and investment goals.
How can real estate investments contribute to financial planning?
Real estate investments offer potential capital appreciation, rental income, tax benefits, and diversification of investment portfolio. They can serve as a long-term asset for wealth creation and retirement planning.
Call
Whatsapp
Enquire
