Remember the iconic character, Chaudhary Baldev Singh from the movie Dilwale Dulhania le Jayenge; Simran’s father who though lived in London, his heart ached for India. An emotion that resonates with many non-resident Indians which is why it is no wonder that there has been a huge surge in the number of N.R.I’s looking to buy a home in their homeland. Here, at Mahendra Homes we get a lot of queries regarding the process, the rules, regulations, etc which is why we have given you a checklist down below to ensure that you have all the required information.
- Documents you require to purchase your dream home
Thankfully, there isn’t too much of documentation involved but before you take a decision, it is recommended that you ask for the property’s title deed, last tax receipts, approved project plan, notice of commencement, and encumbrance certificate. We here at Mahendra Homes believe in being extremely transparent in our dealings and are fully committed in providing you with all the documentation required. Apart from this, you would be needing your passport, address proof and a PAN card for the purpose of verification.
- Payment Rules
Please note that for your purchase in Mahendra Homes or anywhere else, the money has to come only through banking channels and no traveler’s cheques or foreign currency. You can make the payment either through the money lying in your accounts abroad or through your NRE/NRO or FCNR account.
If needed, you can also avail of a home loan in Indian currency as the RBI has granted permission to banks and housing finance institutions which are registered with the National Housing Bank, to disburse loans of at least 80% of the total property value. However, they cannot be disbursed to your personal account but directly to the seller’s or developer’s bank account. Our experts at Mahendra Homes advise you to repay the loan via NRO, NRE and FCNR accounts or from other financial accounts permitted by the RBI.
- Joint Ownership
An Indian resident or an individual who belongs to Pakistan, Bangladesh, Sri Lanka, Iran, Afghanistan, China, Nepal and Bhutan cannot be made a joint owner even if he/she is not contributing any money towards the investment. It can only be purchased either singly or jointly with another N.R.I
- Property Taxes you need to know
If purchased from a resident Indian, you will have to pay a withholding TDS of 1% for properties costing more than 50 lakhs. In case, you are buying from a non-resident, you would have to withhold tax at a rate of 20% of capital gains along with applicable cess and surcharge for long-term capital gains to the seller and 30% for short term capital gains (plus applicable cess and surcharge). Do note that in this case, you would have to withhold the tax even if the property value is less than 50 lakhs.
- Power of Attorney (POA)
Since it can be hard for you to be physically present during the transaction, you can choose a person on your behalf for which you have to visit the Indian Embassy.
Now that you have all the information that you require, don’t wait. Give us a call today and book a visit at Mahendra Homes .