What happens when NRI sells property in India?
When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.
Can NRI sell property in India without going to India?
If you are a Non-Resident Indian, you can sell the property to a Resident Indian without restrictions. If the buyer is a Non-Resident Indian or a Person of Indian Origin (POI), you may need the approval of the Reserve Bank of India (RBI). You are not allowed to sell the property to a foreigner.
Can NRI sell property in India without RBI permission?
The Supreme Court on Wednesday held that a foreigner can not sell or mortgage a property without the prior permission of the Reserve Bank of India.
How can I sell my property from abroad in India?
How do I sell my Indian property from abroad?
- Conduct a comprehensive valuation of the property and determine its value, you can do this by hiring a professional individual or company;
- Execute a valid power of attorney authorising a trustworthy person to complete the transaction on your behalf;
Do I need RBI permission to sell property in India?
RBI permission is required for sale and purchase of property in India by: Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan. Even to lease a property in India, RBI permission is required.
Do NRI pay capital gains tax?
NRIs are subject to TDS at the applicable rates on capital gains earned at the highest tax rates, irrespective of any threshold value. The rate of TDS is 10 per cent on the equity-related capital gains and 20 per cent post indexation for other than equity investments.
How can NRI avoid TDS on property sale?
Reduce your TDS Liability by filing application in Form 13
To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS.
Can US citizen of Indian origin buy property in India?
The NRI can buy a property in India without any restrictions from RBI. They can take required home loans from banks and housing financing institutions. They have to buy the property through Indian currency only.
Can NRI transfer property in India?
A NRI may transfer any immovable property in India to a person resident in India. He may transfer any immovable property (other than agricultural land or plantation property or farm house) to an Indian Citizen resident outside India or a PIO resident outside India.
Do I need to pay tax if I sell my property in India?
If you are planning to sell your property, you’ll have to pay capital gain tax on the profit earned after considering the inflation and indexed cost of acquisition. … If you’re selling a property in India, the profits you earn are called Capital Gains.
Is Aadhaar mandatory for selling property?
Aadhaar is accepted as a identity proof for property registration and land mutation. … “Aadhaar is one of the documents, which executants of conveyance deeds are required to submit as proof of identity for registration of properties. However, the same, as on date is only an optional requirement,” it said.
What is required to sell a property in India?
Sale deed is important as it traces the ownership of the property. It is necessary to prove the chain of previous agreements with past owners. Seller also needs to have a copy of the approved building plan and occupation certificate issued by the competent authority.