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A PIO is a non-Pakistani or Bangladeshi citizen who possesses the following:

• Indian passport
• Parents or grandparents who, according to the Indian Constitution, are citizens of India
• A PIO can also acquire real estate in India and invest in Indian assets if their spouse is an Indian citizen or PIO (for the purpose of bank deposits).

An OCI is a person who is not just a citizen of another country, but also one of the following:

• At one time, he was a citizen of India.
• At the time of the Indian Constitution's inception, he or she was eligible for Indian citizenship.
• Belongs to a territory that was annexed by India after the country's independence.
• Because NRI investment in India or Top Indian Cities For NRI Investors has been increasing at a rapid pace, an OCI can now purchase real estate in India.

The following individuals are eligible to buy property in India, according to RBI guidelines:

• An Indian who is not a permanent resident of the United States (NRI)
• A Public Information Officer (PIO)
• An OCI 
• For the purposes of opening bank accounts, making bank deposits, purchasing property, and so on, all three categories are referred to as NRIs. NRI investing in India has a lot of potentials, and any of the above can purchase real estate in India.

The RBI permits NRIs to buy/sell moveable property in India, such as:

• Residential real estate
• Assets in the commercial sector
• NRIs, on the other hand, are prohibited from purchasing:
• Plantations Farmhouses Agricultural land

If you're an NRI intending to invest in India and want to buy one of them, you'll need to apply to the RBI individually for authorization, and your case will be looked at separately.

NRIs fall into two groups when presenting paperwork to acquire real estate in India: salaried individuals and self-employed individuals.

NRIs with a salary who want to invest in or buy real estate in India should have the following documentation on hand:

• A passport issued by India
• OCI card/PIO card (if applicable)
• PAN (Personal Identification Number) card
• Documents relating to the power of attorney
• Pay stubs over the previous six months.
• Returns on income from the previous two years
• Appointment letter Copy of employment contract (if applicable)
• Permit to Work (if applicable)
• Bank statement from an external bank account for the previous year
• Bank statement from a Non-Resident External (NRE)/Non-Resident Ordinary (NRO) account for the previous year
• Proof of address
• Report on credit
• Documents concerning real estate

NRIs who are self-employed and want to acquire real estate in India should bring the following documents with them:

• PIO/OCI card for passports (if applicable)
• Organization’s Balance Sheet for the last three years
• Profit and loss statements for the previous three years
• Individual bank account statements for the previous six months
• For the last six months, a bank account statement of the company's account is required.
• Returns on income from the previous three years
• Proof of address
• Documents relating to the power of attorney
• Reports on credit
• Documents concerning real estate

Anyone wishing to buy NRI Villa in India, as an NRI should have the following documents:

• Deed of Title
• Authorised building plan 
• NOC from Electricity Supply, Pollution Control Board, and Water Department, Sale agreement between the builder and the former owner (if applicable)
• The builder's letter of possession is included in the sale agreement.
• Extracts from the Khata certificate
• Possession letter Allotment letter
• Certificate of encumbrance (in case of there being a previous buyer)
• Read our post on Mandatory Documents NRIs Need When Investing in Indian Real Estate for more information.

NRIs who wish to purchase property in India must appoint a power of attorney to operate on their behalf.

In India, there are three types of POAs for NRI investment:

• A Special PoA has very limited capabilities, which are usually tied to a certain type of transaction.
• A General Power of Attorney can operate on behalf of an individual in a variety of transactions with no restrictions.
• A Durable PoA has permanent rights and can even make decisions on behalf of a person who is incompetent.

In the case of real estate in India for NRI investment, a POA can:

On behalf of an individual, mortgage, swap, sell, lease, and collect rent.

Perform acts required by banks and insurance firms, such as entering into contracts, dealing with bonds, signing paperwork, and so forth.

To grant someone PoA status, you must complete the following steps:

• On non-judicial stamp paper, draught the PoA agreement.
• With legal representation and two witnesses, go to the Sub-office. Registrar's
• Bring identification, two passport-size photos, a copy of the PoA agreement, and the original documents.
• Both parties' signatures, photos, and fingerprints will be taken.
• Once the registered PoA agreement is finished, return it to the Sub-office Registrar to collect it.

Loans might be made available to NRIs who want to acquire real estate in India. The following are the guidelines to follow when applying for a home loan in India that caters to NRI investment:

• The bank that provides the loan will determine the payback period and loan amount.
• The Reserve Bank of India (RBI) or the National Housing Bank (NHB) sets the interest rate.
• The NRE/Foreign Currency Non-Resident (FCNR)/Non-Resident Non-Repatriable (NRNR) account will not be credited with the loan amount.
• Payments for the loan will be made through traditional banking methods.

The following documents are required for housing loans in India that cater to NRI investment:

• a copy of your passport
• a copy of your employment visa
• Proof of address (utility bill, bank statement, lease agreement)
• Pay stubs over the previous six months
• Statement of NRE/NRO bank accounts over the previous six months
• Documents relating to the power of attorney
• two passport-size photos
• A copy of your PAN card

There is also a list of documentation for paid and self-employed people.

If the following applies to NRIs, they must file income tax returns for their investments:

• During that year, India's taxable income exceeded 1.6 lakhs.
• Capital gains through the sale of investments or assets, whether short-term or long-term, were realised (even below 1.6 lakhs)

Yes, there is. If you make an NRI investment in India, you will not be required to file income tax returns if you:

• Long-term capital gains came from stock or mutual fund investments.
• If income from assets and/or capital gains income has been taxed at the source

NRIs can file income tax returns in three ways:

• They can appoint someone to file their returns on their behalf using power of attorney.
• They can mail their documents to an Indian representative.
• They have the option of filing their tax forms online.

With these, an NRI can easily purchase real estate in India and enjoy a pleasant voyage.

Some of the assets taxable under CGT for NRI investment in India include:

• House property
• Loans
• Buildings
• Jewellery

Yes, the following are examples of assets that are not subject to CGT:

• NHAI bonds or the Rural Electrification Corporation were used to invest capital gains.
• If long-term capital gains from the sale of a home are put toward the purchase of another home. 
• In such circumstances, the amount exempted is the lesser of the capital gains or the amount invested in purchasing the new home.

If the property was purchased with foreign currency (through traditional banking channels, NRE debit, or FCNR account), the amount repatriated cannot exceed:

• Amount paid in foreign currency via traditional banking procedures.
• Amount paid with an NRE debit card or an FCNR account
• NRIs who desire to acquire real estate in India can remit up to $1 million USD per financial year from their NRO account balance if the property was purchased in Indian rupees.

After deducting taxes, rental income from any real estate in India can be repatriated. However, the sum repatriated cannot exceed the amount paid for the property in foreign currency.

The acquisition of property by an NRI in India is not taxable in and of itself. The following, however, are subject to income tax:

• Rent is a source of income derived from real estate.
• The house's annual value if it isn't the individual's only residential property
• Gains from the selling of the property