The Non-Resident Indians are the NRIs and they miss the home country India like no one and thus prefer to make investments in the Indian property market with the aim to stay connected with the place that has given them an identity.
There are multiple reasons for the NRIs to buy a property in India and the weak Indian rupee is the biggest among them. The fall in INR means savings for the NRIs as assets in India can be bought for a cheaper rate in comparison to the value at which the prospects residing in India can buy.
Also, the better opportunities to invest in the Indian property market under the Modi Government are attracting the Non-Resident Indians. Hence, you must know the essential documents to complete the property purchase process in India.
- Essential Documents
Every NRI is not a businessman. Hence, the salaried Non-Resident Indians must produce their address proof that can include present driving license or electricity bills along with two passport size photographs in case he/she want to make a home loan application.
All these documents are required if a co-borrower is also involved in the home loan application.
The last 6 months details of the Non-Resident External account [NRE] and the Non-Resident Ordinary [NRO] account in India are essential to buy property in India.
The account details of salary bank account for the past 6 months are also an essential document to purchase an immovable asset in India.
The Non-Resident Indian must also produce salary slips and the loan sanction letters in case of receiving a loan in India or aboard earlier.
- PIO Card
The Person of Indian card proves the NRI as an Indian national who was never the resident of particular countries like Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan. In case of non-availability of this card it is mandatory for the NRI to have an Overseas Citizen of India Card [OCI] that verify his/her roots are in India. For example, a person’s grandparents and parents are Indian citizens.
The NRIs who are not the citizens of India till now due to some or the other reasons must visit the Indian embassy or the consulate to get the same thing done.
The last option to prove Indian citizenship is to add the birth certificates of the parents to the required documents to buy a property in India.
- PAN Card
This is an important document as tax filling cannot be done without the same especially after the NRI purchase immovable assets in India.
The PAN card is even required to file IT return as the NRIs rent out the property in India. The same document is also needed at the time of filling IT return when a purchased asset in India is sold in profit. The capital gains are accumulated to the total taxable income and a PAN comes to use at this time.
- Signatory Authority
A signatory authority and the Power of Attorney can be transferred by the NRIs to their most trusted relative or a friend in India to complete the property buying process.
Well, this is optional as some Non-Resident Indians prefer visiting India to seal the property deal personally.
All the above-mentioned things must be verified by the Indian embassy in the country where the Non-Resident Indian is currently residing.