NRI CORNER

CONNECT WITH OUR DUBAI OFFICE

Ashish Paurana
Ahuja Constructions
Unit No. 2411, Burlington Tower,
Business Bay, UAE
Phone no.: +971 553471793

FAQ

  • Who is a NRI?

    An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs) for the purpose of certain facilities.

  • Who is a PIO?

    A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:

    • Held an Indian Passport at any time
    • who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955
  • Who is OCI?

    Any person of full age and capacity:

    • Who is a citizen of another country, but was a citizen of India at the time of, or at any time after, the commencement of the constitution
    • Who is a citizen of another country, but was eligible to become a citizen of India at the time of the commencement of the constitution
    • Who is a citizen of another country, but belongs to a territory that became part of India after the 15th Day of August, 1947.
    • Who is a child of such a citizen
    • A person, who is minor child of a person mentioned in clause provided that no person, who is or had been a citizen of Pakistan, Bangladesh shall be eligible for registration as an Overseas Citizen of India.
  • Documents required for buying property?
    • Pan card (Permanent account number)
    • OCI/PIO card (In case of OCI/PIO)
    • Passport (In case of NRI)
    • Passport size photographs
    • Address proof
  • Who can purchase immovable property in India?

    Under the general permission granted by RBI, the following categories can freely purchase immovable property in India:

    • Non-Resident Indian (NRI)- that is a citizen of India residing outside India
    • Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan)
    • At any time, held Indian passport
    • Who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
    • The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land/plantation property/farm house in India. OCI can purchase immovable property in India except agricultural land/plantation property/farmhouse.
  • What is the tax treatment for income generated from property selling or renting for NRI/ PIO / OCI?

    The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.

  • Are NRI/ PIO/ OCI eligible for Housing loans to buy property from any Indian Bank?

    An authorised dealer or a housing finance institution in India approved by the National Housing Bank may provide housing loan to a non-resident Indian or a person of Indian origin residing outside India. For acquisition of a residential accommodation in India, subject to the following conditions, namely:

    • The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person residing in India.
    • The loan amount shall not be credited to Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident non-repatriable (NRNR) account of the borrower.
    • The loan shall be fully secured by equitable mortgage by deposit of title deal of the property proposed to be acquired, and if necessary, also be lien on the borrower’s other assets in India.
    • The instalment of loan, interest and other charges, if any, shall be paid by the borrower by remittances from outside India through normal banking channels or out of funds in his Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident
    • Non-repatriable (NRNR)/Non-resident Ordinary (NRO)/non-resident Special Rupee (NRSR) account in India, or out of rental income derived from renting out the property acquired by utilization of the loan or by any relative of the borrower in India by crediting the borrower’s loan account through the bank account of such relative (The word ‘relative’ means ‘relative’ as defined in section 6 of the Companies Act, 1956.)
    • The rate of interest on the loan shall conform to the directives issued by the Reserve Bank of India or, as the case may be, the National Housing Bank.
      The bank normally fund 80% of the property value, 20% of the property value needs to be funded by the customer.
  • Who should file tax returns?

    If you are an NRI/OCI/PIO, you would have to file your income tax returns if you fulfill either of these conditions:

    • Your taxable income in India during the year was above the basic exemption limit of 2.5 lakh
    • You have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains are less than the basic exemption limit.
  • Salaried individual

    Copy of employment contract
    Latest salary slip
    Latest work permit
    Bank statement for 4 months or NRE/ NRO a/c 6 month statement
    Passport/ visa copy
    Utility bill for address proof
    PIO/ OCI card
    Power of Attorney (if applicable, in respective bank format)
    Customer credit check report
    Property agreement duly registered or other related documents
    Income tax returns last 2 years

  • Self employed individual

    Balance sheets and P&L a/c of the company for last 3 years
    Bank a/c statements for last 6 months for company and individual, both
    Income tax returns (3 years)
    Passport/visa copyt
    Utility bill for address proof
    PIO/ OCI card
    Power of Attorney (if applicable, in respective bank format)
    Credit check report
    Property agreement or other related docs

Note:

The enhanced exemption limit for senior citizens and women is applicable only to residents and not to non-residents.

Indicative list of documents required for home loans

  • Salaried individual
    • Copy of employment contract
    • Latest salary slip
    • Latest work permit
    • Bank statement for 4 months or NRE/ NRO a/c 6 month statement
    • Passport/ visa copy
    • Utility bill for address proof
    • PIO/ OCI card
    • Power of Attorney (if applicable, in respective bank format)
    • Customer credit check report
    • Property agreement duly registered or other related documents
    • Income tax returns last 2 years
  • Self employed individual
    • Balance sheets and P&L a/c of the company for last 3 years
    • Bank a/c statements for last 6 months for company and individual, both
    • Income tax returns (3 years)
    • Passport/visa copy
    • Utility bill for address proof
    • PIO/ OCI card
    • Power of Attorney (if applicable, in respective bank format)
    • Credit check report
    • Property agreement or other related docs<