Selling property in Delhi to an NRI involves several legal requirements to ensure compliance with Indian laws. Here are the key steps and considerations:
Power of Attorney (PoA): Since NRIs may not be physically present in India, appointing a trusted individual through a PoA is crucial. This legal document must be notarized and registered with the local sub-registrar’s office in India. The PoA should clearly outline the authority granted, especially regarding property transactions.
Title Deeds and Documentation: Ensure all property documents are in order, including the original title deed, No Objection Certificate (NOC) from the housing society or municipality and proof of identity and address.
Tax Deducted at Source (TDS): The buyer must deduct TDS at 20% on the sale proceeds if the property is held for more than two years (long-term capital gains). For properties held for less than two years (short-term capital gains), the TDS rate is 30%. NRIs can claim exemptions under Section 54 and Section 54EC if they reinvest the capital gains in another property or specified bonds.
Repatriation of Funds: Post-sale, NRIs can repatriate the sale proceeds to their foreign bank accounts. This process involves adhering to the Reserve Bank of India (RBI) guidelines, which allow repatriation of up to USD 1 million per financial year from the Non-Resident Ordinary (NRO) account, subject to tax compliance.
By following these steps and securing proper legal l advice, selling property in Delhi to an NRI can be a smooth and compliant process, protecting both the seller and the buyer’s interests in the property sale agreement Delhi.
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