Despite slowing global economy the real estate market in India has been a productive investment option for Non-Resident Indians. Favourable rate of exchange and improved transparency have positively impacted the NRIs. In the recent times it have seen that NRI’s from Europe and North America coming to India to sell their purchased and inherited property after they obtain citizenship in these countries. This is not a trend that has been extensively examined but it makes perfect sense. Holding on to real estate is not always being easy if one is unable to manage.
For selling any property in India NRI needs the following documents:
Sale Deed :
A Sale Deed is one of the most important legal documents which act as a proof of sale and transfer of ownership of the property from seller to buyer. A Sale Deed has to be necessarily registered before the office of the Sub Registrar. Sale deed is one of the main documents needed while selling a property to establish ownership. A seller should resolve all the statutory payments such as property tax, water charges, society charges, electricity charges, maintenance charges etc.
Allotment, Completion or occupation certificate:
A letter of allotment from a society, builder or any relevant authority that is showing who is the main owner of the property. A copy of approved building plan is required for selling a property. Also an occupation certificate is a proof that the apartment has been occupied by certain person and is also given out by the society or by the builder.
No objection certificate
NRIs must obtain a No Objection Certificate from their society. This document is important to confirm that the seller has no pending dues to society. And it also clears that society has no objection to the sale of the apartment.
Encumbrance Certificate
It is also important to ensure that the property does not have any dues for which a buyer must verify the encumbrance certificate. An encumbrance certificate provides evidence that the property not has any kind of legal and monetary liabilities. The certificate can be obtained from the registration authority i.e. sub-registrar’s office where the property has been registered.
Passport
An NRI who want to sell any property in India should hold a passport. It is also valid for a Person of Indian Origin or for an Overseas Citizen of India. The passport serves as the identity proof of the person it may not necessarily be an Indian passport.
PAN Card
A PAN (Permanent Account Number) is mandatory for all large scale transactions in India. If an NRI owns a property in India then they should have a PAN card. NRI’s required a PAN card while selling the property in India for applying tax exemption certificate.
If somebody doesn’t have a PAN , they can apply by sending the signed application form 49AA along with documents of ID and address proof. Alternatively an NRI can also furnish Form 60 in the absence of a PAN due to some unavoidable reasons.
Tax Returns
An NRI who has been holding a property for a certain period and earning money from it, the transaction are taxable. So tax returns are also an important document while selling the property in India. NRI’s are allowed to claim exemptions under section 54 and 54EC on long term capital gains from sale of house in India. When an NRI sells any property the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years a TDS of 30% shall be applicable.
Address Proof
It is important document to show the address proof of India as well as abroad. An NRI has to give documents in support of his address in India like Ration Card, Electricity bills, life insurance policy statement, Telephone bills, water bills, etc.
Power of Attorney
While selling a property you can transfer the right to sell the property to a broker via Power of Attorney. Be careful in whose name you are signing the power of attorney. Also clear all the post selling details before make an agreement to that effect specifying the commission etc.