Easier for Global Indians to buy property in India

The over 1.5 million Global Indians in the UK are among the most prolific investors in India's real estate space. Srividya Rajan, General Manager, Corporate Sales & Brand Engagement, Sumansa Exhibitions, gives some key pointers on investing in India to coincide with the annual Indian Property Show in London in April 2016. Cities to invest in In terms of the most preferred city, according to a study conducted by Sumansa Exhibitions, Mumbai has topped the charts followed by Delhi, Bangalore, Ahmedabad and Pune. Mumbai tops the list for non-resident Indians (NRIs) who are considering to settle down in India in coming years. Mumbai is regarded as the financial, commercial and entertainment capital of the nation and is competing with Singapore, Hong Kong and Shanghai to emerge as an international financial capital. Delhi has continued to be the most stable market in terms of demand and absorption of both residential and commercial spaces. Just after Delhi, Bangalore stands at 3rd position with 20 per cent, Ahmadabad at 17 per cent per cent assumes 4th position and Pune is at 5th position with 13 per cent. New rules Finance minister Arun Jaitley in the Budget 2016 proposed to amend section 206 AA of the Income tax Act, which clearly states that NRIs without PAN card will not be subjected to higher rate of Tax Deduction at Source (TDS). Unlike the current situation, where NRIs are subjected to higher deduction of tax on furnishing documents other than a PAN card. This rule will definitely make buying property in India much easier for the people residing outside India. Dos & Don'ts While choosing a property an NRI must keep following things in mind: Sale Deed: This will be the core legal document that will act as proof of sale as well as the transfer of ownership from the buyer to a developer. This should be registered compulsorily. Also, before executing the sale deed, you must check whether the property under deal bears a clear title, feel free to contact our legal experts and get all your queries answered. Title Deed: This is especially applicable when you are buying a plot from a seller. Check if the deed title is in the name of the seller and he has the full right to sell it. Insist upon looking at the original and not just a photocopy. Approval Plan of Your Building: Any building owner must obtain an approval plan from the concerned authority, either from the jurisdictional commissioner or any other officer who has been authorised by the commissioner. Completion Certificate: This will be issued by the municipal authorities stating that the building is in compliance with rules and is built according to the approved plans. This is very important at the time of purchasing a house. Occupancy Certificate: An inspection will be performed by the authorities, when the builder is applying for this certificate, in order to ensure that the building meets all the norms that are specified. In simple terms, the certificate would certify you that the project is ready for occupancy. Encumbrance Certificate: Before buying any land or house, it is important to confirm that the property does not have any legal dues. Conveyance Deed: The word conveyance means the transfer of ownership or interest in real property from one person to another by a document, such as a deed, lease, or mortgage. In India, transfer of property or rights in immovable property is governed by the Transfer of Property Act, 1882. For the transfer of any immovable property or rights in immovable property, it is necessary to execute a conveyance deed. The power of attorney: It is advisable that an NRI should give the power of attorney to an Indian resident who is trust worthy. In case the NRI is not present in India for the legal formalities, the trusted person can complete all the formalities. Who can buy property in India According to the regulations of Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI), an NRI, OCI, PIO is permitted to make specific investment in real estate. Any immovable property can be purchased by an NRI, PIO in India other than any agricultural land, farm house and plantation property. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he / she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of /or reporting to the Reserve Bank. An NRI, PIO, OCI can get any immovable property by gift from Indian resident, Indian citizen residing outside India or person of Indian origin. However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift. A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift. An NRI, PIO or OCI can obtain any property by inheritance from a person resident in India and a person residing outside India. However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property. A foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was residing in India.

The over 1.5 million Global Indians in the UK are among the most prolific investors in India's real estate space. Srividya Rajan, General Manager, Corporate Sales & Brand Engagement, Sumansa Exhibitions, gives some key pointers on investing in India to coincide with the annual Indian Property Show in London in April 2016.