The most common property disputes faced by NRIs include unauthorized occupation of property (“kabza”), family disputes over ancestral property, fraudulent sales and transactions (often through misused power of attorney), boundary disputes with neighbours, and problems with tenants who refuse to vacate or pay rent.
FAQ Category: Services
What digital initiatives has the Indian government introduced to simplify property/land registry for NRIs?
Recent digital initiatives include e-registration systems in many states, the RERA online portal for transparency, Digital Locker for secure document storage, and pilot blockchain land record projects in some states.
What are the common challenges NRIs face during property registration in India?
Major challenges include physical absence during the registration process, additional documentation complexities due to NRI status, understanding diverse state regulations, long-distance property management issues, and navigating dual tax implications.
How do tax implications differ for NRIs when selling property in India?
NRIs face specific tax considerations including 20% TDS on capital gains (which the buyer must deduct and deposit), short-term capital gains tax at normal income tax rates (for properties held less than 24 months), and long-term capital gains tax at 20% with indexation benefits (for properties held over 24 months).
What property-related documents are necessary for land registry for NRIs?
NRIs need title documents (sale deed, gift deed, inheritance documents), property tax receipts, an encumbrance certificate, land use certificate, property valuation report, and any required No Objection Certificates.
What essential identity documents are required for property/land registry for NRIs in India?
Required documents include a valid passport with visa stamps, PIO/OCI card (if applicable), NRI status proof, Permanent Account Number (PAN), overseas address proof, and recent photographs.
What payment methods are acceptable for NRIs purchasing property in India?
Payments must be made through regular banking channels using inward remittances from overseas or from NRE/FCNR/NRO accounts.
What are the primary laws governing land registry for NRIs in India?
The main laws include the Foreign Exchange Management Act (FEMA) 1999, the Registration Act 1908, the Transfer of Property Act 1882, the Income Tax Act 1961, and various state-specific Land Reform Acts.
What types of properties can NRIs legally purchase in India?
Residential and commercial properties can be purchased legally by NRIs. However, agricultural land, plantation properties, and farmhouses require RBIs special permission, though NRIs can acquire these through inheritance.