NRI FAQ'S
When a sale of property takes place and the amount so received as sale proceeds is sent abroad to the country of the NRI’s residence, it is called repatriation of funds. The process involves conversion of Indian rupee to foreign currency.
Yes, NRIs can invest in Indian real estate,
subject to certain guidelines and regulations.
NRIs are permitted to buy residential or
commercial properties in India. However, they are not allowed to own
agricultural land or farmhouses in India.
The best investment for NRIs depends on their financial goals and risk appetite, but real estate is commonly considered a potential option.
If an NRI purchases an immovable property in
India from a resident, he must deduct 1% TDS if the purchase price
exceeds Rs 50 lakh. TDS should be deducted at 20% if an NRI purchases a
property from a non-resident and long-term capital gains (LTCG) are
applicable. In case short-term capital gains are applicable, TDS at 30%
should be deducted.
Yes, if you sell a property in India as an NRI,
the buyer deducts 20% as Long Term Capital Gains Tax (LTCGT) or
properties sold after two years. For homes sold during the first two
years, the TDS rate is 30%, which is deducted as Short Term Capital
Gains Tax.