Previously, we had discussed about how NRIs can buy property in India and the advantages of doing the same. Just a quick recap, with the ever increasing population, property prices will continue to soar. Property makes for a good investment proposition to also insulate you against the volatility in the stock market and international markets. Also, the rules for NRIs purchasing property in India are not stringent.
Which brings us to selling. It is obvious that people purchase property with the idea of selling it. No one needs more than one house to live in, unless it is a holiday home. So what aspects are involved when an NRI wants to sell property in India?
There are a few more conditions involved as far as selling is concerned. But an NRI can sell a property to a resident of India, a person of Indian origin (PIO) or to another NRI. However, plantation land or farm houses can only be sold to an Indian resident who is also a citizen.
In which account can the proceeds from the sale be credited? Well, there are 2 scenarios involved here:
1. The property was purchased when you were a resident Indian
In this case, the sale of proceeds can be credited to your Non Resident Ordinary (NRO) account.
2. The property was purchased when you were an NRI
If the property was purchased by income earned in rupees, or a home loan is repaid by a relative who is a resident Indian, the amount must be credited in the NRO account.
In all other cases, there are limits on repatriation which have been placed by the Reserve Bank of India (RBI). If the property was purchased when you were a resident Indian, you can repatriate up to US$ 1 million each calendar year as long as you have paid all the dues and taxes. If the property was purchased when you were an NRI, there are a few conditions involved. We would suggest that you have a discussion with your legal expert in India to ensure that you don't encounter any roadblocks.
In all cases, repatriation is restricted to the sale of 2 residential properties.
Just like resident Indians, if you sell your property within 3 years of purchase, you will be liable for short term capital gains and tax on the entire proceeds. If you sell the property after 3 years of purchase, you will only have to pay tax on the capital gains i.e. the difference between the purchased price and sale price.
Of course, flats in Alibaug are not considered plantation lands or farm houses. In fact, they are lucrative investment vessels now considering that progressing is just about beginning to touch that side of the world. Flats in Alibaug make for good holiday homes and also are good ways of generating revenue through rent.
So consider the above aspects when you are purchasing and selling property in India. Since you are an NRI, you have the right to buy and sell property here. Do ensure that you take the aid of a good legal expert and ensure that papers of the property are clean to avoid litigation's and lawsuits.
Which brings us to selling. It is obvious that people purchase property with the idea of selling it. No one needs more than one house to live in, unless it is a holiday home. So what aspects are involved when an NRI wants to sell property in India?
There are a few more conditions involved as far as selling is concerned. But an NRI can sell a property to a resident of India, a person of Indian origin (PIO) or to another NRI. However, plantation land or farm houses can only be sold to an Indian resident who is also a citizen.
In which account can the proceeds from the sale be credited? Well, there are 2 scenarios involved here:
1. The property was purchased when you were a resident Indian
In this case, the sale of proceeds can be credited to your Non Resident Ordinary (NRO) account.
2. The property was purchased when you were an NRI
If the property was purchased by income earned in rupees, or a home loan is repaid by a relative who is a resident Indian, the amount must be credited in the NRO account.
In all other cases, there are limits on repatriation which have been placed by the Reserve Bank of India (RBI). If the property was purchased when you were a resident Indian, you can repatriate up to US$ 1 million each calendar year as long as you have paid all the dues and taxes. If the property was purchased when you were an NRI, there are a few conditions involved. We would suggest that you have a discussion with your legal expert in India to ensure that you don't encounter any roadblocks.
In all cases, repatriation is restricted to the sale of 2 residential properties.
Just like resident Indians, if you sell your property within 3 years of purchase, you will be liable for short term capital gains and tax on the entire proceeds. If you sell the property after 3 years of purchase, you will only have to pay tax on the capital gains i.e. the difference between the purchased price and sale price.
Of course, flats in Alibaug are not considered plantation lands or farm houses. In fact, they are lucrative investment vessels now considering that progressing is just about beginning to touch that side of the world. Flats in Alibaug make for good holiday homes and also are good ways of generating revenue through rent.
So consider the above aspects when you are purchasing and selling property in India. Since you are an NRI, you have the right to buy and sell property here. Do ensure that you take the aid of a good legal expert and ensure that papers of the property are clean to avoid litigation's and lawsuits.
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