Frequently Asked Questions
Carpet Area: The distance between the inner walls is called the carpet area of an apartment. A simple way of understanding the term is the area of the apartment which can be covered by a carpet is known as the carpet area. The carpet area would include the areas of the bedroom, living room, kitchen, bathrooms, balconies and staircases within the apartment.
Note: This area does not include the area covered by the external and internal walls.
RERA Carpet Area: The net usable floor area of an apartment. This area includes the internal partition walls but excludes the external walls, common areas, exclusive balcony or veranda area appurtenant to the apartment, and exclusive open terrace area.
Built-up Area: The built-up area is the sum of the carpet area and the area of both the exterior and interior walls, balcony/verandah and exclusive terrace.
The only difference between Carpet Area and RERA Carpet Area is that the area of the internal partition walls is included in RERA Carpet Area while in it is excluded in Carpet Area. Approximately, the RERA Carpet Area is 5% more than the general Carpet Area.
- Aadhaar Card
- PAN Card
- Passport sized photograph
- Power of Attorney (if the Purchaser is not present for registration)
- Power of attorney/letter of authority, along with a copy of the resolution of the company’s board, authorizing the person representing the company to carry out the registration (in case a company is party to the agreement).
- Loan documents, if applicable.
Stamp duty is a tax imposed by the state government under Section 3 of the Indian Stamp Act, 1899, on the sale of property. Stamp duty is an additional cost incurred by the Purchaser on the purchase immovable property. The penalty for insufficient payment of the stamp duty will be levied at 2% per month and up to a maximum of 200% of the unpaid amount.
Under Section 17 of the Registration Act, 1908, all transactions that involve the sale of an immovable property should be registered with the Sub-Registrar of Assurances in whose jurisdiction the property lies. The registration fee for property documents is 1% of the market value of the property subject to a maximum of Rs 30,000.
An NRI is an Indian citizen holding an Indian passport and ordinarily residing outside the country. To qualify as a resident Indian, an individual should have spent 182 days or more of a financial year in India, or should have stayed in India for 60 days or more in the year and for a period of 365 days or more in the 4 years preceding the relevant financial year. NRIs who wish to invest their money in India will be required to open an NRI account in India to do so.
A Person of Indian Origin (PIO) means a foreign citizen who at any time held an Indian passport or a person with an Indian lineage. The term PIO has been replaced by Overseas Citizen of India (OCI) from 31st December 2021. An OCI is a foreign national holding the passport of a foreign country and is not a citizen of India. A foreign national who was eligible to become a citizen of India on 26.01.1950, or was a citizen of India on or at any time after 26.01.1950, can apply for OCI card.
An NRI or an OCI cardholder is entitled purchase or sell immovable properties in India other than agricultural land, farmhouse or plantation property.
A Purchaser is eligible to avail a home loan of up to 80% of the value of the property. The Purchase will be required to file an application form providing personal details and details of income. Banks perform their due-diligence in order to determine if a Purchaser will be able to pay off a loan by assessing the income and the credit history.
There is no restriction or limitation on purchase of immoveable property (except purchase of agricultural land, farmhouse or plantation land) by NRIs in India. Also, NRIs do not need any special permission from the Reserve Bank of India (RBI). It may be noted that it is not necessary for an NRI to have an Aadhar card while buying or selling a property, though he/she will be required to have an NRO account.
An NRI investing in immoveable property in India can avail of tax benefit under 80 C of the Income Tax Act 1961. If the property purchased is for self-use, an NRI can enjoy tax exemption. Since there is a high demand for housing with cities growing rapidly, higher returns can be expected from rental income. NRIs can be assured of a high return on investment in immoveable property since India has a stable real estate market which is poised to grow exponentially in the coming years.
As per the provisions of the Foreign Exchange Management Act (FEMA), 1999, NRIs and OCIs do not require prior approval from the RBI to acquire/ transfer immovable property (other than agricultural land, farmhouse or plantation property) in India. The only stipulation is that the consideration must be paid in Indian Rupees through normal banking channels, or through NRI bank accounts under FEMA and RBI regulations. When an NRI/OCI sells property, the buyer is liable to deduct TDS @20%. In case the property has been sold within 2 years, TDS @30% shall be applicable.
NRIs/OCIs are allowed to repatriate money out of India. While NRE and FCNR accounts have no remittance limits, an amount upto US$ One million during the financial year, out of the balances held in the NRO account is allowed to be remitted, subject to tax compliance.
Repatriation is restricted to sale of two residential properties only. Also, an NRI/OCI may repatriate if the property has been held for at least 10 years.