NRI Glossary
Confused by Indian legal, tax, or banking terms?
Here’s a plain-English dictionary designed specifically for NRIs.
Aadhaar
A 12-digit unique identity number for residents. NRIs are eligible only if they have lived in India for 182+ days in the last year, but usually use Passport/PAN.
Agreement to Sell
A contract promising to transfer property at a future date upon satisfaction of certain conditions. Precedes the Sale Deed.
Apostille
A simplified authentication method for documents (like POA) to be used broadly in Hague Convention countries without further consular legalization.
Capital Gains
Profit arising from the sale of a 'capital asset' (property, shares). It is taxable in the year of sale.
Completion Certificate (CC)
Issued by municipal authorities certifying that the building is constructed according to approved plans.
CRS (Common Reporting Standard)
Global standard for automatic exchange of financial account information between tax authorities.
FATCA
US law requiring foreign banks to report assets of US citizens (including NRIs/OCIs in US) to the IRS.
FCNR Account (Foreign Currency Non-Resident)
A fixed deposit account held in foreign currency (USD, GBP, etc.) to avoid exchange rate risk. Fully repatriable and tax-free.
Foreign Remittance
Transfer of money from a foreign country to India or vice-versa.
Form 15CA
An online declaration filed by the remitter (NRI) stating that tax has been deducted/paid on funds being repatriated.
Form 15CB
A certificate from a Chartered Accountant certifying the tax compliance of a remittance.
IBAN
International Bank Account Number. Standard system effectively identifying bank accounts across national borders.
Indexation
A technique to adjust the purchase price of an asset for inflation, reducing the taxable capital gain.
Inheritance Tax
A tax paid by a person who inherits money or property. Currently, there is NO inheritance tax in India.
Legal Heir Certificate
A document issued by revenue authorities to identify the living heirs of a deceased person for transfer of movable assets (investments).
Lower TDS Certificate
A certificate issued by the Income Tax Officer (on Form 13 application) authorizing a lower or nil rate of TDS deduction.
LTCG (Long Term Capital Gains)
Gain from selling an asset held for more than a specified period (24 months for property). Taxed at a special rate (20% for property).
Notarization
The act of a Notary Public verifying the identity of the signer. The first step in executing a POA abroad.
NRE Account (Non-Resident External)
A rupee-denominated account for income earned abroad. Funds are fully repatriable, and interest earned is tax-free in India.
NRI (Non-Resident Indian)
An Indian citizen who acts as a resident outside India for employment, business, or vocation purposes, or stays outside India for 182 days or more in a financial year.
NRO Account (Non-Resident Ordinary)
A rupee account for managing income earned in India (rent, pension, etc.). Interest is taxable, and repatriation is limited to $1M/year.
Occupancy Certificate (OC)
Issued by authorities certifying the building is safe and ready for habitation. Crucial for legal utility connections.
OCI (Overseas Citizen of India)
A lifelong visa status given to foreign citizens of Indian origin (except from Pakistan/Bangladesh). OCI holders can live/work in India indefinitely but cannot vote or buy agricultural land.
PAN (Permanent Account Number)
A 10-digit alphanumeric ID issued by Income Tax Dept. Mandatory for major financial transactions in India.
PIO (Person of Indian Origin)
An older status merged with OCI in 2015. Refers to foreign citizens who (or whose ancestors) held an Indian passport.
POA (Power of Attorney)
A legal document authorizing another person (Agent) to act on your behalf for legal, property, or financial matters.
Possession Certificate
Document issued by the builder/seller when handing over the keys and physical possession to the buyer.
Probate
The legal process of validating a Will by a court. Mandatory for properties in Mumbai, Chennai, and Kolkata.
Ready Reckoner (Circle) Rate
The minimum value of property notification by the government for stamp duty calculation.
Registration Fee
A fee paid over and above stamp duty to register a property transaction in government records (typically 1%).
Rental Yield
Annual rental income expressed as a percentage of the property value. Typically low (2-3%) in India.
Repatriation
The process of moving funds (principal or interest) from India to an overseas bank account, subject to RBI compliance.
RERA
Real Estate (Regulation and Development) Act. Protects home buyers and boosts investments in the real estate industry.
Sale Deed
The primary legal document evidencing the sale and transfer of ownership of property from seller to buyer.
Section 54
IT Act section allowing exemption on LTCG from house property if reinvested in another residential house in India.
Section 54EC
IT Act section allowing exemption on LTCG if invested in specified capital gains bonds (NHAI, REC).
Stamp Duty
A government tax levied on legal documents, primarily sale deeds for property transfer. Varies by state.
STCG (Short Term Capital Gains)
Gain from selling an asset held for less than the specified long-term threshold. Usually taxed at standard income tax slab rates.
Succession Certificate
A document issued by a civil court to the legal heirs of a deceased person to establish their right to inherit debts and securities.
SWIFT Transfer
Secure messaging network used by banks for international money transfers.