Can NRIs buy property in India?⌄
Yes. NRIs (Indian citizens residing abroad) can freely purchase residential and commercial properties. They cannot buy agricultural land, plantation property, or farmhouses without special approval. Funding must come through NRE/NRO/FCNR accounts or direct inward remittance from abroad.
What is the difference between NRE and NRO account?⌄
NRE (Non-Resident External): Holds foreign earnings converted to INR. Fully repatriable (principal + interest). Interest is tax-free in India. NRO (Non-Resident Ordinary): Holds India-sourced income (rent, dividends). Repatriation limited to $1 million/year. Interest taxable in India.
Do NRIs need to pay TDS when selling property in India?⌄
Yes. The buyer deducts TDS at 22.66% (including surcharge and cess) from NRI sellers on capital gains. For long-term capital gains, tax treaty benefits may reduce this. NRI must file Indian ITR to claim refund if TDS exceeds actual tax liability. CA guidance is essential.
Can NRI repatriate property sale proceeds abroad?⌄
Up to USD 1 million per financial year from NRO account. CA must certify in Form 15CB + NRI files 15CA online. Proceeds from NRE account are freely repatriable without limit. Property must have been originally purchased with foreign exchange or from NRE account for full repatriation rights.
Can an NRI invest in Indian mutual funds?⌄
Yes, under Portfolio Investment Scheme. Through NRE account: repatriable. Through NRO account: limited repatriation. Capital gains taxed in India (short-term: 20%, long-term: 12.5%). USA and Canada residents face additional restrictions from some fund houses due to FATCA/local regulations.
Does Power of Attorney need to be notarised abroad?⌄
Yes. PoA executed abroad must be: (1) Notarised by a Notary Public in that country, (2) Apostilled (if the country is part of Hague Convention — UAE, USA, UK, Singapore are members), (3) Authenticated by Indian Embassy/Consulate (for non-Hague countries). We guide you on the exact process for your country.
Can NRI get a joint loan with a resident Indian?⌄
Yes and it is recommended. Joint application with a resident co-applicant (spouse, parent) simplifies document submission, property registration, and loan servicing. The resident co-applicant's income increases eligibility. Property should be jointly owned for both to benefit.
What is the tax treatment of NRE fixed deposit interest?⌄
NRE fixed deposit interest is completely exempt from income tax in India. Principal is also fully repatriable. This makes NRE FD one of the most tax-efficient India investment options for NRIs — tax-free returns in India (home country tax may apply).
Can NRI buy insurance from Indian companies?⌄
Yes. NRIs can buy life insurance (term and savings plans), health insurance, and other insurance products from Indian insurers. Premium typically paid from NRE/FCNR account. Maturity proceeds and claims credited to NRO account (repatriable within limits). India-based family members as nominees.
What is FEMA and why does it matter for NRIs?⌄
FEMA (Foreign Exchange Management Act) governs all foreign exchange transactions and cross-border investment by NRIs. All property purchases, loan repayments, fund transfers, and insurance must be FEMA-compliant. Non-compliance can lead to penalties. We ensure all transactions are structured correctly.
How is rental income taxed for NRI property owners?⌄
Rental income from India is taxable in India for NRIs. 30% TDS is deducted by tenant. NRI must file Indian ITR. Standard deduction of 30% applies + municipal taxes + home loan interest (u/s 24b). Double taxation avoidance treaties with many countries prevent double taxation.
Can OCI cardholders take home loans in India?⌄
Yes. OCI cardholders have the same property rights as NRIs. They can purchase residential and commercial property, take home loans, and hold insurance. OCI holders can also make standard property transactions freely. We serve OCI clients with the same dedicated support.