Income Tax: Tips for NRIs buying property in India
Financial Express
Sanjeev Sinha
Non Resident Indians (NRIs) buying a piece of property in India may find it hard to comply with all the rules due to their non-familiarity with Indian laws. Taxation is another complex issue for them.
The Foreign Exchange Management Act (FEMA) allows an Indian citizen residing outside the country to invest in Indian real estate. However, it comes with a few exceptions. For instance, the property should not be an agricultural land, a farmhouse or plantation property. If exempted properties are gifted or inherited, then NRIs will need government and RBI approvals to be the legal owners of such properties.
