Big reasons to buy.

An NRI (Non-Resident Indian) is an Indian citizen who resides outside India for employment, business, education, or any other purpose for an extended period. NRIs maintain Indian citizenship but are classified differently for taxation and legal purposes based on their duration of stay in India.

A PIO (Person of Indian Origin) is an individual of Indian ancestry who is not a citizen of India but has roots in the country. The PIO status was previously granted to foreign nationals of Indian descent, allowing them certain benefits in India. In 2015, the PIO card scheme was merged with the OCI (Overseas Citizen of India) card, making OCI the primary status for persons of Indian origin residing abroad.

In India, property can be purchased by Indian citizens, Non-Resident Indians (NRIs), and Overseas Citizens of India (OCIs). Foreign nationals generally cannot buy property, except in specific cases like inheritance. NRIs and OCIs can invest in residential and commercial properties but are restricted from purchasing agricultural land, plantation properties, or farmhouses.

An OCI (Overseas Citizen of India) is a foreign national of Indian origin who holds an OCI card, granting them lifelong visa-free travel and residency in India. While they do not have full citizenship rights, they can work, own property, and participate in economic activities, but they cannot vote or hold government positions.

NRIs can buy residential and commercial properties in India without any restrictions. They cannot purchase agricultural land, plantation property, or farmhouses unless inherited or gifted. All transactions must comply with FEMA (Foreign Exchange Management Act) regulations, and payments should be made through Indian banking channels using NRI accounts.

• Salary slips, usually for the last 3–6 months, to verify income.
• Bank statements for the recent 3–6 months, to confirm salary credits.
• Form 16, issued by the employer for income tax proof.
• Income tax returns filed for the last 2–3 years.
• Identity proof: Aadhaar, PAN card, passport, or driving licence.
• Address proof: utility bill, rental agreement, or Aadhaar card.
• Employment proof: offer letter or employment certificate.

NRIs need a valid passport, PAN card, OCI/PIO card if applicable, proof of address, a power of attorney if buying remotely, and bank account details (NRE/NRO account).

• General PoA grants broad powers to act in legal, financial, and business matters.
• Special or specific PoA limits authority to particular tasks, such as selling property or managing a bank account.
• Durable PoA remains valid even if the principal becomes incapacitated.
• Non-durable PoA becomes invalid if the principal is incapacitated.
• Medical PoA allows the agent to make healthcare decisions.
• Springing PoA becomes effective only under stated conditions, usually upon the principal’s incapacitation.

A Power of Attorney (PoA) is a legal document that allows one person, the principal, to grant another person, the agent or attorney-in-fact, the authority to act on their behalf in legal, financial, or medical matters. It can be general, covering broad powers, or specific, limited to certain tasks. It can also be durable, remaining valid even if the principal becomes incapacitated.

A PoA allows an appointed person to act on behalf of another in legal, financial, or medical matters. The agent can manage bank accounts, sign documents, handle real estate transactions, make healthcare decisions, and represent the principal in legal proceedings, depending on the type and scope of the PoA.

NRIs applying for a home loan must meet eligibility criteria such as minimum age, typically 21–60 years, employment stability, and income proof from a recognised foreign employer or business. Most banks require a valid passport, visa, overseas address proof, and salary slips or income tax returns. Loan tenure is usually up to 20–30 years, with interest rates slightly higher than resident loans. Repayment must be made through NRE/NRO accounts via inward remittances. A Power of Attorney in favour of a local representative is often required for documentation and property dealings.

1. Choose an agent: select a trusted person to act on your behalf.
2. Determine the type of PoA: general, specific, durable, or medical.
3. Draft the document, outlining the agent’s powers.
4. Sign and notarise it in the presence of a notary and witnesses, if the law requires them.
5. Register it with the appropriate authority, where registration is required.
6. Share copies with relevant parties such as banks or legal institutions.
7. Revoke it if necessary, with a written notice.

Individuals, businesses, and entities earning taxable income above the exemption limit set by the government must file an income tax return. This includes salaried employees, self-employed professionals, freelancers, companies, and those with capital gains, rental income, or foreign earnings.

NRIs need a valid passport, visa, proof of overseas employment, salary slips, bank statements, NRE/NRO account details, property documents, and a power of attorney if required. Lenders may also request credit reports and tax returns.

NRIs can file income tax returns in India online through the Income Tax Department’s e-filing portal. They must determine their taxable income, choose the appropriate ITR form, usually ITR-2 or ITR-3, and ensure compliance with tax deductions and exemptions. Filing can be done using their PAN, Aadhaar if applicable, and a digital signature or electronic verification such as OTP or net banking. The deadline for filing is typically 31 July, unless extended.

Those whose total income is below the basic exemption limit, senior citizens meeting specific criteria, individuals with only tax-exempt income, and certain categories such as agricultural income earners. Specific exemptions also apply to diplomatic personnel and other notified entities.

Capital gains tax for NRIs is calculated on the type and duration of the asset. Short-term capital gains on listed equities, if sold within 12 months, are taxed at 15%, while other assets are taxed as per the applicable income tax slab. Long-term capital gains on equities above ₹1 lakh are taxed at 10% without indexation, while other assets such as real estate are taxed at 20% with indexation. Tax is deducted at source when an NRI sells property in India. Liability can be reduced through exemptions under Sections 54 and 54EC.

The Reserve Bank of India has laid down guidelines for the repatriation of funds by NRIs and foreign investors.

• Funds in NRE and FCNR accounts are fully repatriable.
• Repatriation from NRO accounts is restricted to $1 million per financial year, subject to tax compliance.
• NRIs can repatriate up to $1 million per year from property sales, provided taxes are cleared.
• Dividends, interest, and capital gains from Indian investments are generally repatriable under FEMA rules.
• Certain transactions require RBI approval, and documentation such as Form 15CA/15CB is needed for tax compliance.

Exemptions vary, and generally include a primary residence, certain small-business assets, inherited assets, and specific investment vehicles such as retirement funds. Some jurisdictions also offer exemptions for gains below a threshold or for reinvestment in similar assets.

Yes. Rental income earned in India by NRIs and OCIs can be repatriated, subject to conditions. As per RBI regulations, up to $1 million per financial year can be repatriated, provided applicable taxes are paid and a certificate from a chartered accountant, Form 15CA and 15CB, is obtained.

Income from selling or renting property in India is taxable for NRIs under the Income Tax Act. Rental income is subject to a 30% TDS deduction, while capital gains tax applies to property sales: 20% for long-term gains on property held for over two years, and as per the income slab for short-term gains. NRIs can claim deductions under sections such as 80C and 54.