• Sell/Rent Property
  • Nri Zone

A Non-Resident Indian is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education or any other purpose.

A Person of Indian Origin is a person of Indian origin or ancestry but who is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.

  • Non-Resident under Income Tax Act, 1961
  • Liability to pay tax in India does not depend on the nationality or domicile of the Tax payer but on his residential status. Residential Status is determined on the basis of physical presence i.e. the number of days of stay in India in any year.
  • Resident:
  • A. An individual is resident if any of the following conditions are satisfied:
  • he stayed in India for 182 days or more during the previous year, or
  • he stayed in India for 365 days or more during the four preceding years and stays in India for atleast 60 days 9 182 days in case of an Indian citizen or a person of Indian Origin coming on a visit to India or 182 days in case of an Indian citizen going abroad for an employment ) during the previous year.
  • Stay in India for the above criteria may be continuous or intermittent.

  • B. Hindu Undivided Family (HUF) or firm or other Association of persons is resident of India except in cases where the control and management of its affairs is wholly situated outside India in the previous year.

    C. A company is resident in India if:
  • It is an Indian company, or
  • during the previous year, the control and management is situated wholly in India.
  • An NRI has to pay stamp duty as well as registration fees at the time of purchase of a property. He / she is entitled to avail all / any benefits at par with Indian residents on the interest paid for the home loan.
  • Proceeds from sale of property come under the head of income from property, therefore, standard deduction is applicable as per the standard slab. In this case, the NRI will have to pay the applicable tax if he is residing in the country where worldwide income is taxable unless the country has Double Tax Avoidance Agreement with India.
  • The special advantage for an NRI is the amount which is paid for the interest of home loan is deductible from NRI’s taxable income without any upper limit. The NRI is legally responsible for the payment of capital gains tax as prescribed under the Income Tax Act, in case he sells off the property.

  • According to the regulations of FEMA and RBI, an NRI is permitted to make specific investment in real estate. A NRI is allowed to do the following investments in property:
  • Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
  • He can get any immovable property as mentioned above by gift from Indian resident, Indian citizen residing outside India or person of Indian origin. Obtain any property by inheritance.
  • He can transfer immovable property to any resident of India by sale.
  • He can transfer any agricultural land, farm house or plantation land to any resident of India by gift.
  • He can also transfer his residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.