At Rainbow, we offer seamless global property management and investment services that can be conveniently handled from the comfort of your home. Our dedicated team collaborates closely with clients at every stage, providing support in investment, management, and other related property services specifically tailored for NRIs with interests in India.
According to the rules and regulations set by the RBI, NRIs have the flexibility to acquire both residential and commercial properties in India without the need for any special permissions or restrictions on the number of properties they can purchase. Additionally, income tax laws are favorable for NRIs. In situations where an NRI cannot personally visit India, they have the option to grant Power of Attorney to a representative who can conduct property transactions on their behalf.
According to the Foreign Exchange Management Act (FEMA), an NRI is a citizen of India who is a resident outside India. FEMA is the act which governs the purchase of Indian real estate by NRIs.
A PIO (not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan) should have:
According to the general permission granted by the Reserve Bank of India (RBI),
people under the following categories can freely purchase immovable property in
India.
Non-Resident Indian (NRI)
Person of Indian Origin (PIO) The general permission is only for the purchase of
residential and commercial property and not for the purchase of plantation property
/agricultural land / farmhouses in India. Overseas Citizens of India (OCI) can
purchase immovable residential and commercial property in India.
The acquisition of property does not attract income tax. But, any income that is accrued from the ownership of the house, in the form of rent (if it is tenanted), or the annual value of the house (if it is not tenanted and it is not the only residential property owned by that person in India) and / or capital gains (short-term or long-term) arising from the sale of the house or part thereof is taxable in the hands of the owner.
The Government of India has granted general permission for NRI / PIO / OCI to buy property in India and they don’t have to pay any taxes even while acquiring property in India. But they have to pay taxes if they are selling the property. Rental income earned is taxable in India, and they will have to obtain a PAN card and file returns on income if they have rented out the property. If they sell the property, the profit on sale would be subject to capital gains. If they have held the property for less than or equal to 3 years after taking actual possession.
At Rainbow Infra Developers, we are dedicated to transforming your real estate dreams into reality. As a multifaceted real estate company, we specialize in property development, construction, marketing, and promotion, offering a one-stop solution for all your real estate needs.
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