The property rights of Non-Resident Indians (NRIs) in India are governed by the laws and regulations set forth by the Indian government. NRIs are individuals who are Indian citizens but reside outside of India for various reasons, such as employment, education, business, etc. The property rights of NRIs are subject to certain restrictions and conditions, but they do have various rights regarding property ownership and transactions in India. Here are some key points:
Types of Properties: NRIs are allowed to own residential and commercial properties in India. However, they are not permitted to acquire agricultural land, plantation properties, or farmhouses, except in specific cases where they inherit such properties.
Acquisition of Properties: NRIs can acquire properties in India by way of purchase, inheritance, gift, or through a lease for a specified period.
Repatriation of Sale Proceeds: NRIs can repatriate the sale proceeds of up to two residential properties, provided they were acquired through inward remittance or funds held in an NRE (Non-Resident External) or FCNR (Foreign Currency Non-Resident) account. The repatriation limit is subject to certain conditions, and any gains on the property are also eligible for repatriation.
Joint Ownership: NRIs can jointly own properties in India with other NRIs or Indian citizens. However, if they jointly own a property with an Indian resident, certain restrictions might apply.
Rental Income: NRIs can rent out their properties in India and repatriate the rental income after deducting applicable taxes.
Inheritance: NRIs have the same inheritance rights as resident Indians. They can inherit and hold properties they receive as legal heirs or beneficiaries of wills.
Taxation: NRIs are subject to different tax regulations compared to resident Indians. Tax implications vary based on factors such as the nature of income, residential status, and Double Taxation Avoidance Agreements (DTAA) between India and the country of residence of the NRI.
It’s important to note that laws and regulations may change over time, so it’s advisable to consult with a legal expert or a chartered accountant familiar with NRI property rights and taxation to get the most up-to-date and accurate information.
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