Knowledge Center

1. Type of Investment

NRI can definitely invest in both residential and commercial property in India. There isn’t any limitation or restriction in the number of properties owned by NRIs, but they cannot invest or buy in farmhouses, agricultural lands and plantations.

2. Agricultural Land

Although an NRI cannot invest himself in an agricultural land, he can own an agricultural land through a gift or inheritance.

3. Power of Attorney

Since there is no limitation or restriction on the investment an NRI can make, he can invest freely in Indian real estate himself or with the help of a relative via Power of Attorney(POA).

4. Tax Benefit

NRIs are entitled to tax benefits exactly like the citizens of India are entitled when they buy a home in India and can claim the deductible amount as mentioned under Section 80C of Income Tax Act, 1961.

5. TDS implication

NRIs are liable to pay TDS for a property that is over 50 lakhs INR at 1%. They also are liable for capital gain tax while they sell a property.

6. Deduction on other expenses

Like an Indian citizen is eligible for deduction on certain expenses like stamp duty, registration, municipal taxes, and a 30% deduction on rent – same goes for NRI as well.

7. Housing loan

NRIs can avail the benefit of a housing loan too similarly like an Indian citizen but there is a different documentation process for NRIs to be followed for the same.

8. Home loan interest

NRIs donot have a fixed limit for claiming a deduction on home loan interest.