While buying property in India is one of the long term investments made by NRIs, there come scenarios when they wish to sell off their properties as well. This may include reasons like liquidity requirements for meeting future goals, financial needs that crop up suddenly or simply to reap the rewards of an early investment and its appreciation.
Here are the documents required by NRIs for selling property:
- Passport- NRIs desirous of selling property in the country should have a passport although this should not necessarily be an Indian passport. This will be the identity proof for the individual who is involved in the particular transaction. For a PIO (person of Indian origin) and OCI (overseas citizen of India), a passport will have the same purpose as well.
- PAN Card- NRIs should apply for their Permanent Account Number or PAN in India whenever they wish to purchase a property here. It will be needed for applying for the tax exemption certificate. Post sale of property, PAN numbers are provided to NRIs with foreign communication addresses to select countries globally.
- Tax Returns- If NRI has been holding onto property for a specific duration and earning money from it through rentals, the transaction will be taxable. Tax returns for the ownership period should be ready in this case.
- Address Proof- NRIs should provide documents showing their addresses in India and also abroad. This could be telephone/electricity bills, life insurance policy papers, ration cards and so on.
- Sale Deed- A vital document is always the sale deed of a property which is the primary ownership proof. This is the agreement that is executed by the NRI while buying any under-construction property in the country.
- Allotment Letter- Letter of allotment from the builder, society or relevant authority will bestow property upon the person holding the same.
- Documents from Society- For an apartment in a residential society, a letter from the society is required for execution of the sale process. This states that the seller does not have any due payments to the society and copy of society membership is also vital in this scenario.
- Approved Occupation Certificate and Building Plan- Copies of the former will prove that the apartment was occupied while the latter will be necessary for selling off the property.
- Encumbrance Certificate- The certificate is vital for assuring buyers that the property or land does not have any legal dues pending. This is vital for selling property.
NRIs should also keep property tax receipts carefully over the years.