The Foreign Exchange Management Act of India governs the tax liabilities of any transaction between an NRI selling properties in India. According to this act, the chief factors that contribute to the sum payable as tax are:

1. The capital gains decided by the date of sale of property
2. The value of the agreement based on the profit achieved
3. Expenses liable to the society
4. Additional pending loans

Under the provision of Section 195 of the Income Tax Act, an NRI selling property in India can retrieve a tax exemption certificate from the income tax department of the country. However, the application needs to be under the same jurisdiction as the applicant’s PAN card with proof of capital gains reinvestment.

Furthermore, under section 54 of the Income Tax Act, if an NRI has sold a property by three years of tenure and immediately procured another property within two years of the trade, then the profit spawned by the sale is absent of any tax liabilities. But this rule is valid only to properties purchased in the Indian subcontinent by an NRI.

Moreover, if an NRI sells a property after three years of possession and spends the capital gains in bonds, then he is not predisposed to pay capital gains as per Section 54E of the Income Tax Act. However, the bonds will be closed for a period of three years only if there is a residential property in India.

Additionally, the Capital Gains Account Scheme, 1988 allows a deposit of gains in a public-sector bank or other banks to claim it for an exemption without being liable to pay any tax on it.

Property owners often struggle with the decision whether to manage their rental property by themselves or to seek out professional property management companies. The decision, of course, weighs in on multiple factors as the amount of time the landlord has at his/her disposal, rental demand where the property is located, costs involved in hiring a company, etc.

Services offered by lawyers specializing in this field of property related disputes involve-

1. Legal advice or online legal advice by specialists in the field of property laws
2. Title Documentation in property law for all kinds of title documents or deeds
3. Handling of civil and criminal suits related to property laws
4. Drafting, filing and defending the case for partition, specific performance and related concerns or for recovery of possession
5. Online Legal guidance related to FDI in real estate
6. Legal services in relation with project consultancy for real estate projects, housing projects, townships, housing societies

Since the India and USA are under a Double Taxation Avoidance Agreement, the amount can be deducted which is paid for gains tax in India to the capital gains tax which is indebted to the US government.

The Foreign Exchange Management Act of India governs the tax liabilities of any transaction between an NRI selling properties in India. According to this act, the chief factors that contribute to the sum payable as tax are:

1. The capital gains decided by the date of sale of property
2. The value of the agreement based on the profit achieved
3. Expenses liable to the society
4. Additional pending loans

Under the provision of Section 195 of the Income Tax Act, an NRI selling property in India can retrieve a tax exemption certificate from the income tax department of the country. However, the application needs to be under the same jurisdiction as the applicant’s PAN card with proof of capital gains reinvestment.

Furthermore, under section 54 of the Income Tax Act, if an NRI has sold a property by three years of tenure and immediately procured another property within two years of the trade, then the profit spawned by the sale is absent of any tax liabilities. But this rule is valid only to properties purchased in the Indian subcontinent by an NRI.

Moreover, if an NRI sells a property after three years of possession and spends the capital gains in bonds, then he is not predisposed to pay capital gains as per Section 54E of the Income Tax Act. However, the bonds will be closed for a period of three years only if there is a residential property in India.

Additionally, the Capital Gains Account Scheme, 1988 allows a deposit of gains in a public-sector bank or other banks to claim it for an exemption without being liable to pay any tax on it.

An NRI can purchase or sell property in India without being physically present in the country. There are several ways in which you can achieve this heavy duty task and that too with the help of the Indian Government. RBI (Reserve bank of India) has explicitly mentioned instructions so that anyone who is living abroad can buy property without any difficulties.

Note: It should also be clear that the immovable property bought by NRI should only be used for residential purposes or to complete any other requirement except agricultural land, farm house and/or plantation property. But even if an NRI want to buy any of the properties that comes under exception then, they have to obtain special permission from RBI which is not always guaranteed.

1. Under the RBI’s general authorization, an NRI can purchase a property, either individually or mutually with another NRI. The most competent way to buy property is adopting a Power of Attorney (POA)

2. Appoint a power of attorney who will be your personal legal counselor. He will suggest you all the matters related to real estate and all the other formalities because he is already an expertise in the field. This way there will be a direct contact between you and your required conditions through the way of an attorney. This method is officially used by many people because it is cost efficient and effective. The POA will do all the legal paperwork and close all the formalities.

3. As he is already familiar with the India Laws and real estate market, he might be able to help you with the best deals as well. It is further suggested to appoint that particular General Power of Attorney (GPA) or Special Power of Attorney (SPA) whom you think is reliable because it will be easy to communicate.

4. To get a suitable POA you have to visit the Indian Embassy of the city and country where you are situated and sign the document in front of the consulate officer. The documents also involve a photograph, your left thumb impression and your signature for it to be considered as valid.