Tips for NRIs to monitor their Indian property

We know that NRIs have the legal right to buy commercial as well as residential Indian property. There is no any limit to the property they can buy. But, they can’t purchase agricultural land or farmhouses or even plantations – neither can they accept be gifted these. But they can acquire the latter in inheritance.

Property Inheritance:

An expat with an Indian passport is not allowed to invest in any immovable property. But, a relative or friend gifts to it, he can take its ownership. Moreover, he doesn’t need to pay tax as a gifted property is exempt from it. The word ‘relative’ (who can gift the property) includes:

• ·         Spouse
• ·         Brother/Sister
• ·         Brother/ Sister of the spouse
• ·         A lineal descendant or ascendant
• ·         A lineal descendant or ascendant of the spouse
• ·         But, you have to take care of that immovable property by self.

Top things to manage and protect your Indian property:

Bear in your mind that it’s going to be a difficult battle if you sue from overseas. You can’t visit on every trial. What you can do to protect and manage your property:

• Never rely on the third party to take care of your property. Take charge and stay on top of the situation from wherever you are.
• Engrave a nameplate.
• Go for legal documentation, even if it’s inherited. You must transfer all documents in your name.
• Pay taxes to the Municipal Corporation and other authorities. Pay through cheques.
• Keep photocopies of those cheques and documents in a safe place.
• Don’t empower your attorney with unlimited authority.
• Specify which kind of authority you’ve provided to him. Be it for maintenance and protection of Indian property, mention it subtly.
• Don’t provide the authority to sell that property. Neither should you give the power to agree to oversell that asset.
• Always make legal agreements with the people whom you are handing over the property possession then whether they are tenants or caretakers

What protections can you take?

It is crucial that all NRIs have their documents in the correct order. This would involve the title deeds, mutations, Will documents etc. Keep all documents of your Indian property, cheques of tax and their photocopies in a safe place. Also, the purchase documents of the property and land are required too -along with all bills paid. Even if there is a necessity for a Power of Attorney one has to be sure of making one with all due precautions and safety nets. It always benefits to take the help of a property lawyer or legal service expert.

Benefits of having Indian Property for non-residents:

Loan against rental income:

The non-residents Indian can apply for 5-year loan upfront against the rental income. Or, they can deposit the paper of the real-estate as a security with the bank. In return, the bank would give them short-term funds in India. Apart from banks, the housing companies do play the same role. Hence, you would have a golden opportunity to get a loan.

Repatriation up to $1 million:

If you use your property in India for generating rental income, you can repatriate that amount.  But, that repatriation would be possible after three-year lock-in period. The lock-in period is the predetermined time.

If it’s generated from an inherited property, you can repatriate up to $1 million in a financial year. There is no lock-in period for this. You don’t need to pay tax. But, you have to present the documents and certificates attested by the chartered accountant (CA).