PGN Property

Category: NRI

Categories
NRI

Can I Buy a Flat in India Without Travelling to India?

Buy a Flat in India Without Travelling to India
Buy a Flat in India Without Travelling to India

Yes, it is entirely possible to purchase a flat in India without being physically present in the country. The typical property buying process includes the following steps:

  • Property Tour
  • Document Verification
  • Finalization
  • Price negotiation
  • Sale Agreement
  • Home loan co-ordination with Bank
  • Deed Registration
  • Receiving the property possession

The only stage that typically requires your physical presence is at the sub-registrar’s office, where your thumb impression and a live webcam photograph are captured to complete the property registration.

However, this requirement can be managed remotely by appointing a Special Power of Attorney (SPA) holder. This allows a trusted individual to legally represent you and complete the necessary formalities on your behalf, including providing your thumb impression and webcam photo at the sub-registrar’s office.

WHO CAN BE YOUR SPECIAL POWER OF ATTORNEY HOLDER?

You may appoint any of the following as your SPA holder:

  • Father
  • Mother
  • Sister
  • Brother
  • Husband / Wife
  • Son / Daughter
  • Advocate
  • Builder
  • Real Estate Agent / Broker
  • Friend
  • Colleague

Important: To safeguard your interests, the Special Power of Attorney should be carefully drafted to specifically authorize only the presentation of documents in the sub-registrar’s office. It should not grant the authority to execute the conveyance deed or sale deed for the property.

SPA Looks like image below

LOOKING TO BUY PROPERTY IN BANGALORE?

At PGN Properties, we provide both intellectual and on-ground support for your property purchase in Bangalore. We act as your local representative, ensuring a seamless and secure transaction even in your absence.

To avail our services, please write to us:

Categories
NRI

As NRIs, My Spouse and I Jointly Own a Property in Bangalore. What Is the Procedure for Transferring Ownership to My Parents?

NRI Property Transfer

There are two primary methods to transfer ownership of a jointly owned property to your parents:

Option 1: DIRECT TRANSFER VIA GIFT DEED

A Gift Deed is the most straightforward method. Both you and your spouse can jointly execute a Gift Deed in favour of your parents. This process is faster but involves a higher cost due to applicable stamp duties.

Approximate Government Charges:

  • Stamp Duty: 2.5% of the property guidance value + 5000
  • Registration Fee: 0.5% of the property guidance value + 1000
  • Lead-Time: ~7 working days (including drafting, approval, and registration)

Option 2: COST-EFFICIENT TWO-STEP TRANSFER PROCESS

To minimize the total stamp duty, you may consider dividing the transfer into two separate transactions. While this approach is more time-consuming, it can significantly reduce costs.

Step 1: Execute a Release Deed

Your spouse releases their share of the property to you, making you the sole owner.

Government Charge for Release Deed

  • Stamp Duty: Rs. ~5000
  • Registration fee: Rs. 1000
  • Lead-Time: ~7 working days (including drafting, approval, and registration)

Khata Transfer:

Following the registration of the Release Deed, the khata must be updated from joint names to your name. This process typically takes 15–20 working days (including latest EC, application, approval, and download)

Step 2: Execute a Gift Deed from You to Your Parents

Once the property is in your sole name, you may execute a Gift Deed in favor of your parents.

Government Charge for Gift Deed:

  • Stamp Duty: Rs. ~5000
  • Registration Fee: Rs. 1000
  • Lead-Time: ~7 working days (including drafting, approval, and registration)

CASE STUDY: NRI TRANSFERRING PROPERTY TO FAMILY IN INDIA

A husband and wife based in California, both NRIs, approached us with a similar requirement. They jointly owned a 2BHK apartment in Bangalore and wished to transfer ownership to the wife’s mother.

INITIAL CONSULTATION & MISGUIDANCE

Being originally from Mumbai, they consulted a property advisor in Maharashtra, who incorrectly advised them that a flat stamp duty of Rs. 5,000 would apply to the entire transfer. However, the property registration procedure and cost differ between Karnataka and Maharashtra, leading to significant confusion and unanticipated costs.

POWER OF ATTORNEY EXECUTION

Unable to travel to Bangalore, the couple executed a Specific Power of Attorney (SPA) in favor of the wife’s brother to act on their behalf.

Once the SPA arrived in India, they approached us for SPA adjudication, which we facilitated. The applicable stamp duty for SPA adjudication was Rs. 500.

Refer to the SPA below

OUR ANALYSIS

Upon reviewing the ownership structure and transfer plan:

  • The daughter gifting her 50% share to her mother is “Within the Family” category, incurring a stamp duty of Rs. 5000.
  • The son-in-law gifting his 50% share to his mother-in-law is “Outside the Family,” attracting 2.5% stamp duty on the guidance value.

This came as a surprise to the clients, who had expected a flat Rs 5,000 for both transfers based on the earlier (incorrect) consultation.

CHALLENGES ENCOUNTERED

We explored the cost-saving two-step method (release to spouse, followed by gift to the mother), but due to the couple’s physical absence in India and the logistical and financial implications of redoing the SPA (including travel within the U.S, consulate attestation, and shipping), the overall expense would have nearly equaled the stamp duty payable. Therefore, we proceeded with the Gift Deed registration as planned.

KAVERI ONLINE APPLICATION CONSTRAINTS

While applying through Kaveri Online Services, there are two options available for us under the Gift Deed:

  • Within the Family
  • Outside the Family

Refer to the image below

In our case:

  • The daughter gifting the property to her mother qualifies as a “Within the Family” transfer.
  • The son-in-law gifting his share to the mother-in-law is considered “Outside the Family” for stamp duty purposes

Unfortunately, the system does not allow a mixed selection, e.g, one transfer within the family and the other outside in a single application. As a result, we submitted the application under the “Within the Family” category.

We highlighted the selected articles in below summary report for your reference.

REGISTRATION PROCESS AND COST IMPLICATIONS

Since the application was submitted under “Within the Family,” the stamp duty initially amounted to Rs. 11,300

(Note: In a typical scenario, once the application is submitted, the Sub-Registrar’s Office reviews the documents and, if applicable, recalculates the stamp duty, especially for transactions that involve transfers outside the family. If additional duty is required (e.g., 2.5% of the guidance value), a revised payment request is issued to the applicants, who must then make the payment and book the registration slot accordingly.)

In our case, the stamp duty was not recalculated by the system or registrar, and it remained at Rs. 11,300. We proceeded with the payment and successfully booked the registration slot. Refer to below slot confirmation

Subsequently, we registered the Gift Deed and highlighted the Rs. 11,300 payment in the registered document for reference.

Final Stamp Duty Payment

However, during the physical registration process, we were required to pay an additional government cost of Rs. 1,54,330 through Khajene-2 Challan for the portion of the property being transferred from the son-in-law to the mother-in-law, as this portion was treated as a transfer outside the family.

Refer to the payment receipt below

CONCLUSION AND RECOMMENDATION

In hindsight, the couple could have avoided the Rs . 1,54,330 additional cost by opting for the two-step transaction structure:

  1. Husband releases his share to his wife via a Release Deed
  2. Daughter gifts the entire property to her mother via a Gift Deed

This case highlights the importance of understanding the state-specific property matters and the value of professional guidance when dealing with high-value real estate transactions, especially for NRIs

FOR ASSISTANCE

Contact us for guidance or support with your property registration or ownership transfer:

Email: pgnproperties@gmail.com
Call/WhatsApp: +91-97424 79020

Categories
NRI

Can NRI gift immovable property to their parents?

Non-resident Indians (NRIs) often wish to transfer their immovable property in India to family members. When gifting an immovable property, two common questions arise:

  • Can NRIs gift property to their parents?
  • What are the tax implications of gifting Property to Parents?

CAN NRIs GIFT PROPERTY TO THEIR PARENTS?

Yes, NRI can gift property to their parents in India. Let me share the key aspects of gifting property

ELIGIBILITY

  • NRIs can gift property to their parents. The NRI must hold a PAN Number
  • The recipient (parent) must be an Indian resident and must hold Aadhaar or PAN Number

TYPE OF PROPERTY THAT CAN BE GIFTED

  • NRIs can gift both residential or commercial properties to their parents

GIFT DEED REQUIREMENTS

  • The transfer of property must be done through a gift deed, which should be properly drafted and executed
  • The gift deed must be registered with the sub-registrar office, and the applicable stamp duty must be paid

TAX IMPLICATIONS OF GIFTING PROPERTY TO PARENTS

TAX ON THE GIVER (NRI)

  • The NRI does not have tax liability on gifting property to their parents in India.
  • If NRI sells the property through a Sale Deed, a TDS of around 20% of the selling price is applicable. However, gifting the property via a Gift Deed eliminates the TDS

TAX ON THE RECEIVER (PARENT)

  • Since parents are close family members, any gift received from their child is not taxable
  • However, if the parents decided to sell the gifted property in the future
    • They will be liable for TDS on the sale proceeds
    • TDS at 1% applies if the sale value exceeds Rs. 50 lakhs
    • No TDS is applicable if the sale value is below Rs. 50 lakhs

STAMP DUTY AND REGISTRATION CHARGES:

  • While the TDS does not apply, stamp duty and registration charges must be paid before the gift deed registration
  • The stamp duty varies by state and it is usually around Rs. 5,000 for transfer between family members

PROCEDURE TO GIFT A PROPERTY TO PARENTS

Let me explain the procedure with a real example. One of my NRI clients is residing in California, USA. wanted to gift his 3BHK flat in Bangalore to his mother so she could rent it out and generate income. Since NRI could not travel to India for the registration, we followed a structured procedure to complete the transfer effectively

GENERAL POWER OF ATTORNEY (GPA)

  • As the NRI was unable to visit India, he decided to execute a General Power of Attorney (GPA) in favor of his mother, allowing her to complete the gift deed registration on his behalf.
  • We drafted the GPA, printed it in California, got it notarized, and couriered it to India.
  • In India, the GPA was adjudicated at the District Registrar’s office. The adjudication fee was Rs. 500

Refer to the below GPA Image

E-KHATA (ELECTRONIC PROPERTY RECORD)

  • The property had a manual Khata, but an e-Khata was mandatory for gift deed registration in Bangalore.
  • Aadhaar is required to apply for an e-Khata online. Since the client is an NRI and does not have an Aadhaar card, (he has only a PAN), we applied for the e-Khata using the mother’s Aadhaar for e-KYC.
  • After submitting the application online, we needed to update the ID proof from the mother’s Aadhaar to the son’s PAN. For this, we submitted the following documents at BBMP
    • Application acknowledgment
    • Son’s PAN card copy
    • Son’s Passport size photo
  • The Assistant Revenue Officer (ARO) updated the ID proof and photo in the existing application. We received the verified e-khata on the same day, refer to the below image

DRAFT THE GIFT DEED

  • The Gift deed included the following details
    • Title, date, and place of execution
    • Details of the donor (NRI) and donee (mother)
    • Property Description
    • Terms and conditions
    • Details of two witnesses
  • The draft was printed on document paper
  • Since the mother was the NRI’s GPA representative, she signed the Gift Deed as the donor’s representative and then signed again as the donee (recipient of the gift).
  • Two witnesses also signed the gift deed

PAYMENT OF STAMP DUTY

  • We submitted the Gift Deed application on Kaveri Online Services for document verification and approval
  • The applicable Stamp Duty and Registration charges were paid, totaling Rs. 7,165 including the scanning fee
  • Once the payment was completed, we booked an appointment for Gift Deed Registration

REGISTRATION OF GIFT DEED

  • On the scheduled date, the following parties visited the sub-registrar’s office for registration:
    • The mother (NRI’s GPA representative)
    • The mother again (as the gift recipient)
    • Two witnesses
  • Biometric verification and photographs were taken as part of the registration process.
  • The Gift Deed was successfully registered, and property ownership was transferred from NRI to the mother.

Refer to the below-registered Gift Deed

CONCLUSION

By following this structured process, we successfully transferred ownership of the property from the NRI to his mother. This allows her to rent out the property and generate the rental income.

Need Assistance with Property Gifting?

If you’re an NRI looking to gift property to your family in Bangalore and need expert guidance, feel free to reach out:

đź“ž WhatsApp / Contact: +91-9742479020

📧 Email: pgnproperties@gmail.com

Categories
NRI

Can an NRI Gift Property to a Brother in India?

NRI Gift Property to a Brother in India
NRI Gift Property to a Brother in India

Yes, an NRI (Non-Resident Indian) can gift property to a brother residing in India.

This form of transfer offers two significant advantages:

  1. Minimal Transfer Cost:

The total cost for registering a gift deed is approximately â‚ą7,150, applicable to both residents and non-residents.

  • No TDS Deduction:

TDS (Tax Deducted at Source), which ranges between 20.8% to 23.92% of the property value in case of a sale (conveyance deed), is not applicable when property is transferred via gift deed to a relative such as a brother.

COMMON ABBREVIATIONS USED:

  • POA: Power of Attorney
  • DRO: District Registrar’s Office
  • SRO: Sub-Registrar Office
  • OCI: Overseas Citizen of India

CONTEXT OF EXECUTION

In many cases, the NRI donor may not be physically present in India. In such situations, the NRI can execute a Power of Attorney (POA) in favor of the brother, who can then complete the gift deed process on their behalf.

PROCEDURE FOR NRI TO EXECUTE POA FROM ABROAD

Step-by-step process for granting POA:

  • Draft the POA in a Word document.
  • Print the POA on A4-size paper.
  • Sign all pages of the POA. Ensure two witnesses sign on the last page.
  • Get the POA attested by either a Notary Public or the Indian Embassy in the country of residence.
  • Self-attest a photocopy of the OCI and PAN
  • Courier the attested POA along with the self-attested OCI and PAN copy to the brother in India.

POA ADJUDICATION PROCESS IN INDIA

Once the POA arrives in India, the brother must get it adjudicated at the District Registrar’s Office (DRO):

Required Documents:

  • Original POA (attested)
  • Self-attested OCI and PAN photocopy
  • Brother’s Aadhaar card copy
  • A formal request letter addressed to the DRO
  • Stamp duty of â‚ą500 per executant

Process:

  • Submit the above documents at the DRO having jurisdiction over the property location.
  • The POA is usually adjudicated within one working day, after which it is returned to the brother.

GIFT DEED EXECUTION PROCESS BY BROTHER

Once the POA is adjudicated, the brother can execute the Gift Deed at the Sub-Registrar Office (SRO).

Steps to Register the Gift Deed:

  • Engage a qualified advocate to draft the Gift Deed.
  • Submit an application for gift deed registration at SRO. We need the following documents for the application
    • Original sale deed (showing NRI’s ownership), Latest property tax receipt Khata, Adjudicated POA
    • Gift Deed (in original. Sign the Gift Deed on behalf of the NRI (Donor) and again for himself as Donee)
  • Stamp duty and registration fee payment
  • Schedule an appointment at the concerned SRO  At the SRO, provide thumb impressions and webcam photographs for both roles
  • The SRO will then digitally scan the document and provide a registered copy of the Gift Deed.

TOTAL COST FOR GIFT DEED REGISTRATION (KARNATAKA):

  • Stamp Duty: Rs. 5,150
  • Registration Fee: Rs. 1,000
  • Cess: Rs. 500
  • Scanning. Rs. 50 per page. (Rs 500 approx.)
  • Total Estimated Cost: Rs.7,150

NEED ASSISTANCE?

We offer end-to-end support for executing Gift Deeds for NRIs. For assistance, please contact us at:

  • pgnproperties@gmail.com
  • WhatsApp: +91-97424 79020
Categories
NRI

Can NRI buy property jointly with resident Indian?

NRI Jointly purchase the property with resident Indian
NRI Jointly purchase the property with resident Indian

Yes, non-residential Indian (NRI) can purchase residential and commercial property jointly with resident Indian; there is no restriction on number of properties that can be purchased and doesn’t require any special permission.

NRI share of payment can’t be made in foreign currency, can make the payment using Indian currency through normal banking channel like NRI, NRO or NRE account.

In case the NRI is unable to come to India for completing the property purchase, NRI can give power of attorney to resident Indian for property purchase on behalf

Five simplified steps for NRI to purchase immovable property jointly with resident Indian in India

  1. Power of Attorney
  2. Sale Agreement
  3. Home Loan
  4. TDS
  5. Sale Deed

Let’s see the above steps in detail

  1. Power of Attorney (POA):

As we know that NRI lives outside India, If NRI is not physically present in India for property registration. NRI have an option to give POA to complete the property purchase. The POA can be general or specific to present the document in sub-registrar office.

NRI should follow below steps to give POA to resident Indian

  • Prepare the POA draft in word document
  • Print the POA draft on A4 size paper
  • NRI and two witnesses sign the POA
  • Get the POA attested by Indian embassy in your country
  • Send the POA to your resident Indian in India via reputed shipping partner like DHL or Fedex
  • Your POA holder should adjudicate the POA in District Registrar’s office, in the jurisdiction of property location
  1. Sale Agreement:

Sale agreement is a promissory document that states that schedule property will be transferred to buyer at the future date

Below is the steps to make sale agreement:

  • Draft the sale agreement in Word document
  • Ask the resident Indian to buy a non-judicial e-stamp paper, the stamp duty value is 0.5% of the buying price (in Karnataka.)
  • Resident Indians should print the sale agreement draft on non-judicial e-stamp paper, followed by A4-size bond paper
  • Seller, buyer, and two witnesses sign the sale agreement (If NRI gives POA, POA holder signs the sale agreement on behalf)
  1. Home Loan:

All the banks and finance companies provide a joint loan account for NRIs and resident Indians for buying immovable property in India

The bank needs the following documents to process the loan

  • Income proof of buyers
  • Property marketability (seller’s sale deed and encumbrance certificate)
  • Sale Agreement

The bank issues loan in Indian currency, the loan has to be repaid in same currency using your normal NRI, NRO, NRE, or residential Indian bank account.

The bank doesn’t credit the loan amount directly to NRI; bank credits the loan amount directly to seller’s or developer’s bank account.

NRI can co-ordinate with bank remotely via email, telephone, or WhatsApp, your physical presence is not required to get the loan sanction. However, physical presence is required to register Memorandum of Deposit of Title Deeds (MODT) in the sub-registrar office or the POA holder can present on behalf.

If the loan is taken in joint name, usually the NRI is the primary applicant and the resident Indian is the secondary applicant in joint loan account. All the joint borrowers should present for MODT registration in the sub-registrar office, orthe  POA holder can present on behalf

4. TDS:

Tax Deducted at Source (TDS)

The buyer is required to deduct TDS from consideration if the property value is more than Rs. 50 lakh. Buyer deposits the TDS in income tax department

If the seller is Indian citizen, the TDS deduction is 1% of consideration or guidance value, whichever is higher.

If the seller(s) is NRI, the TDS ranges from 20.80% to 23.92% based on the consideration, capital gain, and duration between purchase & sale of property. However NRI seller can apply for low tax certificate in income tax department to bring down TDS rate.

You can log into Income Tax Department website and pay the TDS

5. Sale Deed:

A sale deed is a written document that transfers ownership of the property

Below are the steps to make the sale deed registration

  • Draft the sale deed in word document
  • Make sure to specify the share in property (ratio of NRI and resident Indian share in property)
  • Print the sale deed draft on document paper
  • Pay the stamp duty and Registration fee
  • Book the registration appointment
  • Seller, buyer, POA holder, and two witnesses visit the sub-registrar office for sale deed registration.

We provide exclusive NRI assistance, our assistance optimizes your cost and time. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to +91-97424 79020.

Thank you for reading…

Categories
NRI

Can an NRI Gift Property in India? A Step-by-Step Guide with Process and Costs

NRI Gift Property in India
NRI Gift Property in India

Gifting is a gesture often rooted in love, emotion, and tradition. However, when it comes to gifting cash or immovable assets such as property, it is essential to comply with the legal and regulatory framework.

UNDERSTANDING STAMP DUTY AND REGISTRATION FEES FOR GIFT DEEDS

The cost of executing a gift deed varies depending on the relationship between the donor (the person gifting the property) and the donee (the person receiving the gift). The applicable stamp duty and registration charges differ for blood relatives and non-blood relatives.

Definition of Blood Relatives

In Karnataka state, the following individuals are classified as blood relatives:

  • Father
  • Mother
  • Brother
  • Sister
  • Husband
  • Wife
  • Son
  • Daughter

Anyone outside this list is considered a non-blood relative.

Applicable Charges for Blood Relatives

  • Stamp Duty: â‚ą5,000
  • Cess on Stamps: â‚ą500
  • Registration Fee: â‚ą1,000
  • Scanning Fee: â‚ą35 per page

Applicable Charges for Non-Blood Relatives

(Percentage calculated based on the guidance value of the property)

  • Stamp Duty & Surcharge: 5.1%
  • Cess on Stamps: 0.5%
  • Registration Fee: 1%
  • Scanning Fee: Approx. â‚ą35 per page

ROLE OF SPECIAL POWER OF ATTORNEY (SPA)

A Special Power of Attorney is distinct from other types of power of attorney. It is used specifically for presenting a deed at the Sub-Registrar’s office, especially when the donor is residing abroad.

Under a SPA:

  • The executant (donor) signs the gift deed.
  • The attorney (person holding the SPA) presents the gift deed at the Sub-Registrar’s office but does not sign the deed.

SPA can be granted to any trusted individual. The stamp duty for executing SPA is ₹500 per executant, irrespective of the donee’s relationship.

CASE STUDY: GIFTING PROPERTY FROM ABROAD

Let us consider an example for better understanding.

BACKGROUND:
In 2016, Mr. Pankaj and his wife, Mrs. Shruti, jointly purchased a 3BHK flat in Bangalore. In 2018, they relocated to Stanmore, United Kingdom, and subsequently acquired UK citizenship.

Out of affection, they decided to gift their Bangalore property to Mr. Pankaj’s mother, Mrs. Vidya, without any monetary consideration. The flat was later rented out by the mother, generating regular income in India.

Since Mr. Pankaj and Mrs. Shruti could not travel to India, they executed a Special Power of Attorney in favor of Mr. Pankaj’s brother, Mr. Pratik.

PROCEDURE FOLLOWED

Drafting Documents:
Drafts of the SPA and gift deed were prepared in India and emailed to Mr. Pankaj in the UK.

Execution Abroad:
Mr. Pankaj and Mrs. Shruti printed and signed the Gift Deed and SPA before a UK notary public. Only the SPA required notarization.

Courier to India:
The notarized SPA and signed gift deed were couriered to Mr. Pratik in India.

Adjudication of SPA:

  • The SPA was adjudicated at the Shivajinagar District Registrar’s Office, Bangalore.
  • Stamp Duty: â‚ą200 per executant (â‚ą400 in total).
  • (Note: The updated adjudication fee as of 11th Nov 2024 is â‚ą500 per executant)

Refer to below SPA Image

Online Application:
Mr. Pratik submitted the registration application on the Kaveri Online Services portal along with the following documents:

  • 2016 Sale Deed
  • Property Tax Receipt
  • e-Khata
  • Adjudicated SPA
  • Gift Deed (signed)
  • PAN cards of donors
  • Aadhaar and PAN of donee (Mrs. Vidya)
  • Aadhaar of two witnesses

The application was approved within 2 working days.

Registration at Sub-Registrar’s Office:
Documents carried:

  • Application summary
  • Gift Deed
  • SPA
  • Aadhaar cards of witnesses
  • Pratik presented the gift deed (already signed by the donors).
  • Vidya signed the deed at the Sub-Registrar’s office.
  • Thumb impressions and webcam photographs were recorded.

(Note: Mr. Pratik, as the SPA holder, did not sign the gift deed.)

Refer to below registered Gift Deed

IMPORTANT NOTES:

  • The definition of blood relatives may vary across states. For example, in some states, in-laws, nieces, and nephews may be considered blood relatives.
  • While notary or Indian Embassy attestation is accepted in Karnataka for SPA, some other states may mandate attestation by the Indian Embassy.

Our Services

We provide end-to-end assistance in:

  • Drafting Special Power of Attorney
  • Adjudication procedures
  • Gift Deed documentation
  • Registration and compliance support

For professional assistance, write to us:

Categories
NRI

Guide to buy NRI property through Power of Attorney (POA)?

NRIs living abroad face many practical difficulties in coming to India to sell their property which can take from few days to weeks. It’s not only difficult in arranging long leave but also significant travel cost.

Hence NRIs prefer to sell their property through General Power of Attorney (GPA) by assigning a person to do property registration formalities on their behalf.

Below is the systematic procedure to buy a property through POA from NRI or from a person who temporarily resides abroad

  1. Property Documents
  2. Property Verification
  3. Sale Agreement
  4. General Power of Attorney (GPA)
  5. Home Loan
  6. Tax Deducted at Source (TDS)
  7. Government Fee (Stamp Duty & Registration fee)
  8. Sale Deed Registration
  9. MODT Registration

—————————————————————–

Below, we explained each step in detail

1.Property Documents:

As soon as you finalize a property based on your requirement and growth aspects, it’s prudent on buyer’s part to collect property documents from seller for verification.

NRI seller can email you the soft copy of following primary documents

  • Parent Deed
  • Sale Deed
  • Encumbrance Certificate
  • Tax Paid receipt
  • Khata
  • Occupancy Certificate
  • PAN and Passport
  • Cancelled cheque

————————————————————————

  1. Property Verification:

Verify above listed documents from a real estate lawyer, This is to ascertain the legal ownership of property, tax liabilities with property and to ensure that property is complying with various regulations.

Get the written verification report from lawyer.

—————————————————————————-

  1. Sale Agreement:

The sale Agreement is probably the most important document in the whole chain of sale proceed because even the sale deed is executed based on the terms covered under sale agreement. Sale Agreement covers various aspects of sale such as:

  • Indemnity clause
  • Agreed cost
  • Advance paid
  • Penalty clause
  • Right to call off the deal
  • Procedures to be followed in case of default by either party
  • Losses or obligations to be covered by buyer or seller and etc…

For your better understanding, let me give the real context of buying a property from non-residential Indian:

Mrs.Rajalakshmi lives in California, USA. She owns a 2BHK flat in Foyer City apartment in Doddathoguru village, Bangalore.

We saw this property listed on property website for sale. We connected Mrs.Rajalakshmi on Whatsapp call and toured the property.

We liked the property, After nearly 2 weeks of negotiation with Mrs.Rajalakshmi, we settled at the price of Rs 39 Lakh.

We followed below steps to execute a Sale Agreement:

Step 1: We prepare the sale agreement draft in word file

Step 2: Purchased non-juridical E-Stamp paper from co-operative bank near my place. The Stamp Duty is Rs. 3900 (Rs. 3900 is 0.1% of buying price Rs.39 lakhs. Edit on 13th Nov 2024: The updated stamp duty is 0.5% of buying price)

Step 3: On 17–09–2022, we printed sale agreement draft on A4 size bond paper

Step 4: I (buyer) signed the sale agreement at bottom of all pages, including non-judicial e-stamp paper.

Step 5: We courier the signed sale agreement to Mrs.Rajalakshmi who is in California.

Step 6: Mrs.Rajalakshmi signed the sale agreement and couriered back to me. Below is the image of sale agreement.

As soon as I received the sale agreement, applied for home loan.

Note:

  • In the above, we listed only non-judicial e-stamp paper, 1st page and schedule pages of sale agreement (not all pages)
  • As an alternative, we can adjudicate the sale agreement at sub-registrar office instead of using non-judicial e-stamp paper

———————————————————————————————

  1. General Power of Attorney (GPA):

NRIs grand general power of attorney to a person, to authorize property registration on his/her behalf.

If the General Power of Attorney is given to blood relatives like Mother, Father, Brother, Sister, Wife, Husband, Son, or Daughter. The Stamp is just Rs. 200 (Edit on 13th Nov 2024: the revised stamp duty is 500)

If the General Power of Attorney is given to non-blood relatives like Aunty, uncle, friend or colleagues. The Stamp Duty is 5% of consideration value

For Example: The selling price is Rs. 39,00,000

The Stamp Duty for non-blood relatives is Rs. 39,00,000 X 5% = 1,95,000/-

My seller Mrs.Rajalakshmi followed below steps to execute General Power of Attorney from California:

Step 1: Mr.Rajalakshmi decided to give GPA to her father Mr.Seetharaman

Step 2: Mrs.Rajalakshmi draft the GPA in Word file

Step 3: Printed the GPA draft on A4 size paper

Step 4: Affixed her passport-size photo

Step 5: Mr.Rajalakshmi carried the printed GPA and Passport to notary public near her place in California.

Mr. Rajalakshmi and two witnesses signed the GPA in front of notary. Notary sealed and signed the GPA

Step 6: Mr.Rajalakshmi couriered the GPA to India, to her father Mr. Seetharaman

Step 7: Mr.Seetharaman carried the following documents to Jayanagar District Registrar’s office in Bangalore

  • Notarized GPA which came from California
  • Passport copy of Mr.Rajalakshmi
  • Aadhaar of Mr. Seetharaman
  • K2 challan (Rs, 200 stamp duty receipt. Edit on 13th Nov 2024: the revised stamp duty is Rs. 500))
  • Request Letter

Step 8: The Jayanagar District registrar’s office verified the above-listed documents and adjudicated the GPA

Below is the image of GPA after adjudication

Note:

  • GPA should be adjudicated in the jurisdictions where the property is located.

For example: Bengaluru Urban has five district jurisdictions, they are:

  1. Gandhinagar
  2. Jayanagar
  3. Shivajinagar
  4. Rajajinagar
  5. Basavanagudi

If the property comes under Bengaluru Rural, the GPA should be adjudicated in Rajajinagar District Registrar’s office.

  • District Registrar may take 2 days to adjudicate the GPA (On day 1 submit the GPA and day 2 collect the GPA after adjudication)

Day 1: The documents are verified and submitted for adjudication

Day 2: Come again on day 2 to collect the adjudicated GPA

  • The executant (person who grand GPA) and attorney (person who accepts GPA) presences are not mandatory at the District Registrar’s office for GPA adjudication. Your advocate or property agent can submit GPA on your behalf for adjudication.

———————————————————————————-

  1. Home Loan:

The home loan process is triggered with the Bank. Home loan is a prominent way to fund your property purchase. Also loan makes you eligible for certain tax benefits that can save you lot of money. We can avail home loan to buy under-construction or ready-to-move-in property.

Most banks decide the loan amount up to 60 times one’s monthly salary. If you are earning your monthly salary of Rs. 25,000, we can get a loan amount of Rs. 15 lakhs approx.

The first step in securing home loan is to provide following documents to bank for verification:

  • Income Proof
  • Property marketability (Seller’s Sale deed, Encumbrance Certificate, Tax receipt and eKhata)
  • Sale Agreement (shared the image above)

We triggered with Union Bank of India in PESSE Branch, Bangalore. We got our loan sanctioned in 15 working days and secured the loan amount of Rs. 25 lakhs. The bank’s representative was very helpful in entire process of loan sanction.

The bank issued the cheque in seller’s name Mrs.Rajalakshmi, we encircled the name below

——————————————————————————————

  1. Tax Deducted at Source (TDS):

As per government regulation, buyer is responsible for deducting TDS from consideration and not the seller. If buyer does not discharge the duty of TDS payment, buyer can be penalized for non-payment.

For Indian residents: 1% TDS is applicable if consideration or guidance value is more than Rs. 50 Lakhs, whichever is higher.

For NRIs: Long-term capital gain tax is included in TDS. Below are the rates

  • If consideration is less than Rs. 50 lakhs. TDS is 20.80%.
  • If consideration between Rs. 50 lakhs to 1 crore. TDS is 22.88%
  • If consideration is above Rs. 1 crore. TDS is 23.92%

Buyer should pay TDS on or before registration of sale deed, as the sub-registrar office verifies the TDS challan before proceeding deed registration.

In our context, Mrs. Rajalakshmi temporarily resides in California for job commitment. All the monitary transaction of sale proceed was remitted to her Indian SBI bank account (she didn’t hold NRI or NRO account)

Since Mrs.Rajalakshmi is a temporary resident in California and all the monetary transactions are remitted to her Indian bank account. Considering the selling price and guidance value is less than Rs. 50 Lakhs. TDS is not applicable for this property transaction, as the selling price is Rs.39 Lakhs only.

—————————————————————————————————

  1. Government Fee (Stamp Duty & Registration fee):

The Following are the government fee for resale property registration

% is based on consideration. My buying price is Rs. 39 Lakhs so we paid following government fees

  • Stamp Duty & Surcharge: 5.1%:
  • Registration at 1%
  • Cess on Stamps at 0.5%
  • Scanning Fee Rs. 35 per page

If you refer to our above Sale agreement, we purchased the non-judicial e-stamp value of Rs. 3900 (0.1% of Rs. 39 lakhs). We offset this cost when we pay stamp duty for deed registration.

Before we pay the stamp duty, we should submit an application on Kaveri Online Servies for registration of property, here is the weblink of Kaveri Online Services https://kaveri.karnataka.gov.in/landing-page

Usually, the application is approved within 2-3 working days, pay the Government fee and book the slot for registration. We need following documents to submit an application on Kaveri Online Serviecs

  • Parent Deed & Sale Deed
  • Tax Paid receipt
  • eKhata
  • Seller, buyer and two witnesses Aadhaar
  • Active mobile phone to receive OTP authentication

————————————————————————————————–

  1. Sale deed Registration:

Sale Deed is a written document that transfers the ownership of the property. Registration of the property is the process of ownership transfer as registration implies that the buyer (in whose name property is registered) is the lawful owner of the property with all rights, obligations and duties towards the same.

The objective of registration is to prevent fraud and disputes at same time maintaining public records. The immovable property can be registered at sub-registrar’s office within whose jurisdiction the property falls.

To register the sale deed, we drafted the below sale deed draft and printed on document paper

The property located in Doddathoguru village so we can register the property in any of the sub-registrar’s offices mentioned in below image

We decided to register in JP Nagar sub-registrar office. Seller & buyer carried following things to JP Nagar sub-registrar office

Buyer:

  • Application summary report
  • Aadhaar & PAN
  • Sale Agreement (shared the image above)
  • To be registered Sale Deed (sale deed draft printed on document paper)
  • Stamp Duty & registration fee payment receipt
  • Bank’s cheque (final settlement to seller which we shared the image above)
  • Active mobile phone for OTP Authentication

Seller:

  • Sale deed
  • Tax paid receipt (latest tax receipt of 2022–23)
  • eKhata
  • General Power of Attorney
  • Active mobile phone for OTP Authentication
  • Property Keys

Seller, Buyer and two witnesses signed the sale Deed

In sub-registrar office, we submitted the application summary report and sale deed (to be registered) submitted in registration counter

Seller, buyer and two witnesses are asked to sit at the registration counter for photo, thumb impression and OTP authentication.

Office scanned our sale deed for government record and handed back the registered sale deed to buyer

Below is our registered sale deed:

Immediately after the sale deed registration, we extracted encumbrance certificate to cross-verify the registration, refer to below image

————————————————————————————–

  1. MODT Registration:

The abbreviation of MODT is Memorandum of Deposit of Title Deed.

MODT is applicable for home loan borrowers. MODT registration is an understanding given by borrower that borrower deposits title documents of the property with Bank in return for loan.

Below are the government fees for MODT Registration:

  • Stamp Duty: 0.5% of loan amount
  • Registration fee: 0.1% of loan amount
  • Scanning fee: Rs, 35 per page

We collected MODT papers from bank one day before the registration. Refer to below MODT paper, we encircled total loan amount in below image

 

We submitted the application on Kaveri Online Service. Our application was approved in 2 working days, paid the government fee and booked our registration slot. We registered the MODT in JP Nagar. Refer to below registered MODT

We extracted the encumbrance certificate for cross-verification. In the below encumbrance certificate,

Row 1 is the MODT registration, we encircled the bank name in below image

Row 2 is the sale deed registration

We registered the sale deed and MODT back to back at same time

Bank representative collected following tile documents

  • Parent deed
  • Sale deed
  • Registered MODT
  • Encumbrance Certificate
  • Tax paid receipt
  • eKhata

Bank’s representative handed the cheque to GPA holder, the cheque is in favor of seller’s name Mrs.Rajalakshmi, refer to below image in circle.

GPA holder Mr.Seetharaman handed over the property keys to buyer.

This completes the procedure to buy a property through Power of Attorney

Note:

Take scan copy of title documents before we handover to bank, because we may not able to access these documents again until the loan is cleared. Copy of title documents are must for Khata transfer, name change in tax receipt and utility bills

———————————————————————

We provide end-to-end assistance for the transfer of property. Our service includes

  • Verification report
  • Sale Agreement including adjudication
  • Bank co-ordination for home loan sanction
  • Sale Deed Registration
  • MODT Registration
  • Khata Transfer and name change in property tax receipt

To opt for our services, please write to us pgnproperties@gmail.com or WhatsApp to + 9 1 – 97424 79020.

Thank you for reading…

Categories
Uncategorized NRI

Can NRI gift immovable property to parents in India?

Gifting has always been a heartfelt way to express love and gratitude toward parents. If you are a Non-Resident Indian (NRI) looking to gift immovable property to your parents in India, the good news is that it is legally permissible and involves a simple process. Additionally, the stamp duty and registration fees for a gift deed are relatively low compared to a regular property transaction.

Three Simple Steps to Gift Immovable Property in India

As an NRI, you can follow these three key steps to gift immovable property to your parents:

  1. Execute a Power of Attorney (POA) – If you are unable to be physically present in India, you can authorize a trusted representative, typically a family member, through a General Power of Attorney (GPA).
  2. Pay Government Charges – This includes the applicable stamp duty and registration fee for the gift deed, which varies by state.
  3. Gift Deed Registration – The gift deed must be drafted, signed, and registered with the sub-registrar’s office to make the transfer legally valid.

Real-Life Example: Mr. Chaitanya’s Gift to His Father

To provide better clarity, let’s consider a real-life scenario:

Mr. Chaitanya, an NRI residing in New Zealand, owns a 2BHK flat in the Aditya Vintage Apartment complex in South Bangalore. He wishes to gift this property to his father, Mr. Ramayya. Here’s how he completed the process:

  1. Executing the General Power of Attorney (GPA)

Since Mr. Chaitanya was abroad, he executed a General Power of Attorney (GPA) in favor of his father, Mr. Ramayya, authorizing him to complete the property transfer on his behalf.
Refer to below GPA Image:

2. Payment of Government Charges

  • Ramayya paid the necessary stamp duty and registration fees for the gift deed. Refer to below payment receipt

3.Gift Deed Registration

  • Using the GPA, Mr. Ramayya proceeded to register the gift deed.
  • He signed the gift deed both as the donor (on behalf of his son, Mr. Chaitanya) and as the donee (himself, the recipient of the gift).

Refer to below Registered Gift Deed

With these steps completed, the property was successfully transferred from Mr. Chaitanya to his father, Mr. Ramayya.

Need Assistance?

If you require professional assistance in executing a GPA to registering a gift deed, we provide end-to-end support.

📧 Email: pgnproperties@gmail.com
📱 WhatsApp: +91-9742479020

Thank you for reading!

Categories
NRI

How Can an NRI Buy Property in Bangalore from Abroad?

Purchasing property in India while residing abroad can be a seamless process when executed correctly. Below are five simplified steps to guide NRIs through the process of buying property in Bangalore remotely:

  1. General Power of Attorney (GPA)
  2. Sale Agreement
  3. Home Loan (if applicable)
  4. Tax Deducted at Source (TDS) (if applicable)
  5. Sale Deed

To illustrate the process, let’s consider the real-life example of Mrs. Priya, an NRI based in Denmark, who successfully purchased a 2BHK flat in Bangalore.

Case Study: Mrs. Priya’s Property Purchase in Bangalore

Mrs. Priya, residing in Denmark, decided to buy a 2BHK flat in Bangalore for Rs. 49,75,000. Due to her work commitments, she could not travel to India for the property registration. She, therefore, appointed her mother as her lawful Power of Attorney (PoA) holder in India.

Step 1: General Power of Attorney (GPA)

To authorize her mother to act on her behalf, Mrs. Priya followed these steps to create and adjudicate the GPA:

  1. Drafted the GPA in a Word document.
  2. Printed the GPA on A4-size paper.
  3. Affixed her passport-size photograph on the last page.
  4. Signed the GPA in the presence of a Notary Public in Denmark, along with two witnesses.
  5. Obtained notary attestation and a notary certificate.
  6. Self-attested a copy of her passport.
  7. Sent the notarized GPA and passport copy to India via courier.
  8. Her mother submitted the documents to the District Registrar’s Office (DRO) in India for adjudication, along with:
    • Original GPA
    • Self-attested passport copy of Mrs. Priya
    • Her mother’s Aadhaar card
    • A request letter for adjudication
  9. The DRO verified and adjudicated the GPA. Refer to below image 
 
 

Step 2: Sale Agreement

The sale agreement is a critical document that establishes the terms and conditions of the transaction.

Steps followed:

  1. Drafted the sale agreement in a Word document.
  2. Printed the agreement on A4-size paper.
  3. Both seller and GPA holder (mother) signed the agreement, with two witnesses signing the last page.
  4. Generated a K2 challan of Rs. 4,975 (0.1% of the buying price) for adjudication. (Updated fee as of November 8, 2024: 0.5% of the buying price.)
  5. Adjudicated the sale agreement at the K.R. Puram Sub-Registrar’s Office in Bangalore.

Below is the image of sale agreement:

 
 

Below is the image of K2 challan for Sale Agreement Adjduication

Below image of Sale Agreement adjudication

Step 3: Home Loan (if applicable)

Mrs. Priya applied for a home loan through HDFC Home Loan, Kasturba Road Branch, Bangalore.

The bank required the following documents:

  • Income proof of Mrs. Priya
  • Property documents, including the seller’s sale deed and Encumbrance Certificate (EC)
  • Sale Agreement

Mrs. Priya exchanged the documents via email while her representative in India submitted the hard copies to the bank. The loan was sanctioned within 15 working days, and the amount was issued via cheque in the seller’s name.

Step 4: Tax Deducted at Source (TDS)

Since Mrs. Priya’s property value was Rs. 49,75,000, TDS was not applicable.

(Note: If the property value or its guidance value exceeds Rs. 50 lakh, TDS at 1% must be deducted and paid to the government. Guidance value refers to the minimum property value as determined by the Department of Stamps & Registration.)

Step 5: Sale Deed Registration

The sale deed is a legally binding document transferring ownership from seller to buyer. Below were the steps followed:

  1. Drafted the sale deed in a Word document.
  2. Applied online via Kaveri Online Services, got approval in two days, paid the government fee, and booked a registration slot.
  3. Printed the sale deed on legal document paper.
  4. Scheduled registration at K.R. Puram Sub-Registrar’s Office 
  5. On the day of registration, all parties carried required documents:
    • Seller’s Documents: Original sale deed (from 2011), Encumbrance Certificate, e-Khata, tax paid receipt, Aadhaar, PAN.
    • GPA Holder’s Documents: GPA, passport & PAN copy of Mrs. Priya, application summary report, sale agreement, printed sale deed, Aadhaar.
    • Bank Representative’s Document: Cheque for final payment.
  6. Submitted the application summary report at the registration counter.
  7. Seller and buyer (GPA holder) signed all pages, and two witnesses signed the last page.
  8. Thumb impressions, webcam photos, and OTP authentication were completed.
  9. Final payment was handed over to the seller, and in return, the seller provided:
    • Original sale deed
    • e-Khata
    • Tax paid receipt
    • Property keys
  10. The bank collected all original property documents, while the GPA holder kept photocopies for further proceedings like Khata transfer, name change in property tax records, and utility bill updates.

Below is the image of registered sale deed:

 
 

Conclusion

Mrs. Priya successfully purchased the property from abroad with the help of her trusted representative in India. The entire process was completed via email, calls, and WhatsApp, with minimal direct involvement.

Need Assistance?

If you’re an NRI looking to purchase property in Bangalore, we offer end-to-end assistance, including:

  • Power of Attorney
  • Sale Agreement draftin
  • Home Loan coordination
  • TDS 
  • Sale Deed registration
  • ekhata
  • Property Tax payment

For inquiries, contact us at pgnproperties@gmail.com or WhatsApp +91-9742479020.

Thank you for reading!

Â