NRIs that are the Non-Resident Indians always miss the country where they belong and thus look for opportunities to invest in the Indian property market. The first main reason that pushes the NRIs to buy property in India is the constant falling value of Indian rupee in the international market. The second important reason that the NRIs make property investment in India is the relaxation in norms by the Modi-led Union Government. Hence, we are listing the documents that are important for the NRIs to purchase property in India.
1. Essential Documents
The salaried NRIs are required to have address proof and his/her two passport size photographs to apply for a home loan. The same documents are required for both in case of co-borrower is also there in the application.
The current driving license and electricity bills will also work as address proofs.
The NRI is required to produce bank statement of the past six months as they hold a Non-Resident External account [NRE] and a Non-Resident Ordinary [NRO] account in India.
The NRI is also required to have six-month bank statement of the account in which he/she receives a salary for catering professional service.
NRI must also produce salary slips of the employer along with the copies of loan sanction letters if he/she has availed a loan in India or aboard previously.
2. PIO Card
The PIO card i.e. the Person of Indian origin verifies the NRI as an Indian national and this card is an essential document to buy a property in India. If not this, then the Non-Resident Indian must have Overseas Citizen of India Card [OCI] that proves the ancestral relationship of the person with the country like as if his/her grandparent and parents are the citizens of India.
Apart from this, any NRI who is not the citizen of India before or after partition must have the PIO card as it is the only way to purchase property in the country. A person can apply for this card in the Indian embassy or the consulate where he/she currently resides.
NRIs can prove citizenship of India by adding birth certificates of both the parents in the documents that are important to buy property here.
3. PAN Card
Permanent Account Number is the second essential document for the Non-Indian Residents to make a property purchase in India. This is also important to file income tax return of the property that will be rented out by the NRIs after purchasing the same.
The PAN card is also a requirement to calculate the total income tax in case the NRI sell the purchased property in profit. The selling of a property for more than its value is said to be capital gains and this is added to the total taxable income of a person.
4. Power of Attorney/ Signatory Authority
We all are familiar with these terms and the transfer of signing rights make the procedure of sale, possession and more easy for the Non-Resident Indian. However, transferring of these legal rights is subject to every individual as many people prefer to fly down here to complete the formalities.
But, the too busy NRIs can definitely have this document to buy an asset in India.
Remember all these things must be verified by the Indian embassy in the country the NRI is presently living