Introduction

Following the property registration process in India can be quite a task. Especially for NRIs who aren’t always familiar with the local laws or procedures. As an NRI, understanding the various property laws, from the Registration Act to FEMA, can make all the difference in ensuring a smooth and legal transaction. Whether you’re investing in a new home, or commercial property, or handling inherited real estate. Knowing what’s required, from stamp duties to eligibility criteria, is crucial to avoiding any legal hiccups.

Important Laws

The important property registration laws in India for NRIs are:

1. Registration Act, 1908: The Registration Act of 1908 governs the registration of any property or land in India. It allows both residents and non-resident Indians to register property. NRIs must get the property registered within four months of the date of execution to legally transfer ownership to their name.
2. Foreign Exchange Management Act (FEMA), 1999: FEMA defines a Non-Resident Indian (NRI) under Section 2(w) as a person resident outside India. It regulates foreign exchange transactions and allows NRIs to purchase most types of property in India. Except for agricultural land, farmhouse and plantation property.
3. Indian Stamp Act, 1899: The Indian Stamp Act governs stamp duty, which is a type of tax levied by state governments on property purchases. Stamp duty is payable as a percentage of the property’s value during registration. Rates vary by state and property type (new/old, residential/commercial, location, etc.).
4. Income Tax Act, 1961: The Income Tax Act defines an NRI under Section 2(30) and has specific provisions for taxation of NRIs. The Finance Act, 2020 amended the criteria – if an NRI’s total Indian income exceeds ₹15 lakhs in a financial year, the stay limit to retain NRI status reduces from 182 days to 120 days.
5. Overseas Citizenship of India (OCI) Scheme: Under this scheme, NRIs can apply for OCI cards issued by Indian consulates. OCIs are required for property registration along with other documents like passport copies, PAN cards, possession certificates, photographs, etc.

What Is The Process Of Registration For NRIs In India And How Is It Different From Indians? 

The process of property registration for NRIs in India is similar to resident Indians, with a few differences:

1. Power of Attorney: NRIs can authorise a close relative, friend or trusted individual as their Power of Attorney to handle the property registration process on their behalf. They do not need to be physically present in India to complete the registration.</li>
2. Funding: NRIs must route all property transactions through their NRO (Non-Resident Ordinary) or NRE (Non-Resident External) accounts in Indian banks. They can also use inward remittances from abroad to fund the purchase.
3. Stamp Duty: Stamp duty, which is a percentage of the property’s value, must be paid during registration. Stamp duty rates vary by state and property type (new/old, residential/commercial, location, etc.).
4. Documents Required: In addition to the sale deed, NRIs may need to submit copies of their valid ID cards, No Objection Certificate (NOC) other documents as required by the sub-registrar’s office.
5. Timelines: Property must be registered within 4 months of the date of execution. If there is a delay, an application for condonation can be made to the sub-registrar along with a fine.
6. Restrictions: NRIs cannot purchase agricultural land, farmhouse or plantation property in India. They can only invest in residential and commercial real estate.
7. Eligibility: NRIs can buy property without special permissions, but must register it for legal ownership. They include individuals of Indian origin and those who held Indian passports.

Conclusion 

In the end, while the process might seem daunting at first. Having a clear understanding of the property registration laws and the steps involved can help ease your journey. Whether you’re handling it yourself or through a Power of Attorney. Being prepared and well-informed will make your experience much smoother. Investing in Indian property as an NRI can be rewarding, and with the right guidance, you can ensure everything is done correctly and in your best interest.