Investment or selling a property in Indian real estate is quite simple and smooth when you are an Indian. However, for NRIs, some documents are made mandatory in order for investing in Real Estate in India. Meeting the governments’ norms and rules set for NRIs investment in Indian Real Estate, following is the list of documents to be provided by an NRI while selling a property in India.
A valid address proof constitutes ration card, electricity or telephone bills, and life insurance policy statements etc, which are required to be held by NRI as his proof of residence abroad. At the same time, NRI is required to provide documents in support of his address in India.
An NRI who wishes to sell a property in India must hold a valid passport. It is not a mandate that he must hold an Indian passport, passport of any country shall work as the identity proof of that person. Even the holders of Overseas Citizen of India and Person of Indian Origin cards, passport support the same rationale.
Even if an NRI is not liable to pay taxes in India, due to the fact that their income is table in the country of their residence, it is highly recommended that NRIs should hold an Indian PAN card in case they intend to buy a property in India. PAN numbers are issued to NRIs with foreign communication address and it is required only at the time of sale of the property to claim tax-exemptions.
It is a legal document which is basically an agreement executed by an NRI that he has purchased a property in India. It reflects the primary proof of ownership of a property and one of the key documents in the process of sale.
Approved Building Plan & Occupation Certificate
For selling any kind of property, an approved building plan is a mandate. Occupation certificate proves that the apartment has been given out by the building society or builder and has been occupied.
In case of an apartment, house or even if a land, encumbrance certificate states that no dues are pending to any legal authority. Hence it is considered as one of the key document in executing any sale.
Documents from Society
To go ahead with sale process, a letter from apartment/society is required stating that the seller has no due payment towards the society. To establish ownership of the property, a copy of society membership is also significant.
To bestow the property to the aforesaid person who holds it, a letter of allotment is required from the builder, society or any relevant authority.
In order to be proven as a responsible citizen, tax returns on income from any source, is mandatory. Properties given away on lease or rent generate income and hence, are taxable. In order to pay tax returns, Pan card is required.
In case of the absence of any aforesaid document, NRI is required to get a certificate from a lawyer as a proof of his ownership on the property. Although this document is admissible for sale, original document is a necessity to get the sale executed at faster pace.