First of all, I'd like to thank all who respond to this query.
I am toying with the idea of purchasing a residential plot in India - in either rural Coimbatore or the Nilgiris. I am doing all the homework, with regard to location local weather, infrastructure, the price etc.
I have been in India for over 10 years and have lost touch with the proceedural wrangles, and possible red tape that might be involved in purchasing property.
I understand that a Permanent Account number and proof of residence are an absolute must to register the purchase of property. That said, how do I get a PAN number? Besides would a valid drivers license with and Indian address be acceptable as proof of Address?
What else might be involved, in terms of procedure and paperwork for such a transaction?.
Thanks again, for your valuable inputs.
You need good friends/relatives who can look after the land you buy. If you have someone, then they can tell what all documents you need to buy a land in India. If not, it is not worth.
Information on PAN card can be found easily through Google. There are some companies too who can help you with that for some fee.
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Posted on: 17-05-10 13:51:00
To the OP : This is more about purchasing residential property but concepts could be the same. This was given to me by an Australian citizen who often comes to India to purchase residential flats in Chennai
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First open an NRI Account. (NRO or NRE)
Then finalyse the property
Pay the advance to the builder. (15%-20%)
Go for the home loan (Contact any bank through internet). Download the application – Establish one contact for the home loan.
Complete the loan papers – requirements are Canadian passport copies, salary slips (last six months) local bank account statement, NRI bank Statement, receipts of all payments made to the builder, agreement copy with the builder and any other docs from builder (builder will produce to the institution directly). Post all docs to the institution along with the power of Attorney. The power can either be prepared by the Institution (The person who does your home loan should be able to produce). In my case the builder did everything as it was an established builder.
The builder will have their own Institution for home loans. Preferably go through the institution that the builder recommends as they have good rapport with them (You don’t have to)
Hope this helps.
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It would be wise to give a POA to a local resident (parents, siblings etc..). As Raj said, you should continuosly monitor it and the tenants.
Peace by TK
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I am a Gents and not a Ladies.
I am on the other side, I am trying to sell some of my lands in Trichy.
Just get a good friend / relative, they will document all the formalities and help you. You just compensate them with some good gifts.
If doing from remote, you need Power of Attorney, the rules are pretty stringent now in TN, I feel happy about it in a way lot of hassles. If you want to fly to register, much easier.. I hope you hold either OCI or Indian citizenship.
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The weak died on the way,
Only the strong arrived.
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Quote:
Originally posted by ILOVENA
First of all, I'd like to thank all who respond to this query.
I am toying with the idea of purchasing a residential plot in India - in either rural Coimbatore or the Nilgiris. I am doing all the homework, with regard to location local weather, infrastructure, the price etc.
I have been in India for over 10 years and have lost touch with the proceedural wrangles, and possible red tape that might be involved in purchasing property.
I understand that a Permanent Account number and proof of residence are an absolute must to register the purchase of property. That said, how do I get a PAN number? Besides would a valid drivers license with and Indian address be acceptable as proof of Address?
What else might be involved, in terms of procedure and paperwork for such a transaction?.
Thanks again, for your valuable inputs.
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Though it has been there in the books since 1961, it was not until 2005 or there about that they started to demand one for their convenience. Now every Tom Dick and Harry asks for it and if you don't have it, then they ask for the Passports.
What is PAN Card and Number : PAN or the Permanent Account Number is nothing but a 10 digit, digitally coded, alphanumeric number that is issued by India’s Income Tax Department. It is issued by them in the form of a well laminated card. Since the year 2005, it has become mandatory for all Income Tax return filers to have a PAN, since it is required by virtue of law to be quoted in every possible correspondence with the Tax Authority in India.
IT WEBSITE : http://www.incometaxindia.gov.in/PAN/Overview.asp
Look for Form 49 A : http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/Form49aE.PDF
If you have a Canadian Passport, there is a page in which they ask you to fill in your HOME address. If you want to you can do so. The Indian PAN Card Offices consider this as an authentic Proof Of Address and they will not ask you for the Bank account and proof of address from a Bank. This is for your information.
Also if you apply from out side of India, then they charge you around Rs.750/= or so for the issue of one. But if you have time to apply and get it while you are there, you can get it for under Rs99/= So you make your call on this deal.
These issuing offices are scattered all over India and it is done on behalf of IRS by third parties. It takes about three weeks to get one in your hands. From outside of Canada for the money you are spending you can get one in about a Month by Speed post to you for Rs.750/= +/-
You are totally responsible for your tax issues and money matters that concern you and if you do have an Accountant or an Auditor you can provide his name and address as your Tax representative there and he will have to do the honours for you there, every Tax season.
The Real Estate Market has slowly started to come down and the location you want to buy is a great one and you need proper guidance from an agent who is a local to that area. If it is one under construction and it is still vacant then you are in luck and can walk in before the end of the year.
If you want to start from scratch, then you be present there and take a sabbatical and completer it yourself and provide all of the personal touches while at it.
BTDT.
Freddie.
To all my dear friends who replied to my post, my sincere thanks and gratitude.
The matter relating to PAN number seems to be a gray area. I called a couple of friends a near relatives (and one of them just purchased a piece of real estate). Now each of them says that a PAN is not needed to purchase property. That said, all of us know how the law operates - it looks like a good idea to get one.
I plan on applying for my OCI card soon - looks like it might save the trouble of applying for a visa each time (even though I haven't been to India in a good 8 years!).
To All who took the trouble of replying, thanks again. I will post once again when something happens or I have additional information.
I came upon this website. Date of posting unknown. Please check them out and see if they are to your liking. Under Rs.10 Lakhs for one lot. (Gundu 5.5 cents)
http://www.nrifarms.com/aboutus.html
Freddie.
