The Reserve Bank of India (RBI) has clarified norms for Non-Resident Indians (NRIs) to invest in the Indian real estate. The process of selling property in India by an NRI is nearly the same way as any other Indian resident but with a little more of documentation required. For example, if an NRI wants to sell villas with all facilities available in Bangalore, then he/she should go through all the paperwork and submit the documents.
Here are the essential documents that an NRI requires for selling a property in India:
An NRI should hold a passport as an identity proof of the individual who is involved in this transaction. It is not mandatory for an individual to hold an Indian passport. This even applies to a Person of Indian Origin (PIO) and Overseas Citizen of India (OCI).
It is essential to show the address proof of abroad as well as India. An NRI should submit their telephone, ration card or electricity bills, life insurance policy statements, etc. as their proof. The same set of papers is also needed as the proof of residence in overseas.
If an NRI owns property in India, then he/she should have a PAN (Permanent Account Number) card. It is needed while selling property in India for performing tax exemption certificate. PAN numbers (Permanent Account Numbers) are given out to NRIs with an alien communication address to select countries.
An NRI having a property in India and earning money from it by renting it out must be liable for paying taxes. In that case, tax returns for the whole property-ownership period should also be kept ready. It is imperative to carry documents of property tax receipts over the years.
An allotment letter from the builder or any appropriate authority of the property which declares that the property is owned legally by the owner. This is one of the most helpful documents a seller should have.
Occupation Certificate & Approved Building Plan
Approved building plan will act as evidence that the property is built under government authorities’ permission. Moreover, occupation certificate is a proof that the property has been occupied and is also given out by the real estate developer or the building society.
As a fundamental proof of ownership of the property, an NRI must have sale deed which is one of the essential legal document. It is an agreement performed by an NRI while purchasing an under-construction property in India.
Another critical legal document is an encumbrance certificate which is mandatory to assure the buyer that the land or property has no dues to any legal authority.
These are some of the most significant document an NRI should produce while selling property in India. If any of the mentioned document is missing, then he/she can consult a property lawyer and get a certificate that legally declares the ownership of the property. A property lawyer would carry out a title search and produce a report on the property. Though this certificate is also admissible for sale, an original document is required to get a sale done quickly.