Chennai property terms, explained for NRI owners.

Ownership and land records

Patta

A revenue record in Tamil Nadu that names the owner of a piece of land. It is issued by the revenue department and is one of the first documents checked when a property is bought, sold or inherited.

Chitta

A Tamil Nadu land record that gives details such as the owner's name, the survey number and the size and type of the land. It is often read together with the Patta.

Encumbrance Certificate (EC)

A certificate from the sub-registrar's office that lists registered transactions on a property, such as sales and mortgages, over a chosen period. It shows whether the property carries any registered loans or claims.

Sale deed

The registered document that transfers ownership of a property from seller to buyer. It is the main proof of ownership.

Guideline value

The minimum value per unit area set by the Tamil Nadu government for a location. Stamp duty and registration charges are calculated on this value or the sale price, whichever is higher.

Legal documents

Power of Attorney (POA)

A legal document that lets someone act on your behalf. A general POA covers many actions; a specific POA covers only the tasks it names, such as registering a rent agreement. NRIs usually sign it abroad before an Indian embassy or consulate, or with notarisation and apostille, and it is then adjudicated and registered in India.

Rent agreement

The written contract between owner and tenant setting out rent, deposit, notice period and responsibilities. In Tamil Nadu, tenancy law expects agreements to be in writing and registered with the Rent Authority.

Rent Authority

The local authority set up under Tamil Nadu's tenancy law to register tenancy agreements and settle disputes between landlords and tenants.

Police verification

A check of a tenant's identity and background with the local police, done before the tenant moves in.

Banking and tax for NRIs

NRI

Non-Resident Indian: an Indian citizen who lives outside India. Residence for tax purposes is decided by the number of days spent in India, so check your status with a CA.

NRO account

Non-Resident Ordinary account: an Indian rupee account for an NRI's income earned in India, such as rent. Money can be sent abroad from it within limits and with the required paperwork.

NRE account

Non-Resident External account: an Indian rupee account funded from income earned abroad. It is freely repatriable. Rent from Indian property usually goes into an NRO account instead.

TDS on rent

Tax Deducted at Source. A tenant paying rent to an NRI is generally required to deduct tax before paying and deposit it with the government. The owner can claim credit for it when filing an Indian return.

DTAA

Double Taxation Avoidance Agreement: a tax treaty between India and another country that can stop the same income being taxed twice. India has treaties with the USA, UK, UAE, Singapore, Australia and many other countries.

FEMA

The Foreign Exchange Management Act, the Indian law that governs how NRIs can hold, rent out and sell property and move money in and out of India.

Renting and running a property

Security deposit

An amount the tenant pays at the start of a tenancy, returned at the end after deductions for unpaid rent or damage. The amount is agreed in the rent agreement.

Lock-in period

A period at the start of a tenancy during which neither side can end the agreement without a penalty.

Association maintenance charges

Monthly charges collected by an apartment owners' association for common areas, security, lifts and amenities. The rent agreement should say whether owner or tenant pays them.

Property tax (Chennai)

Tax on property within the Greater Chennai Corporation, paid in two half-yearly instalments. Properties outside the corporation pay the local body that covers them.

Move-in inventory

A dated record, with photos, of a property's condition, fittings and meter readings when a tenant moves in. It is the basis for settling the deposit at move-out.

Chennai roads and bodies

OMR

Old Mahabalipuram Road, officially Rajiv Gandhi Salai: Chennai's IT corridor, running south from the city with many IT parks and gated apartment communities.

ECR

East Coast Road: the coastal road running south from Chennai towards Mahabalipuram and Puducherry, known for villas and beach houses.

GST Road

Grand Southern Trunk Road: the main road south-west from the city past Chennai airport, Pallavaram and Tambaram towards Chengalpattu.

CMDA

Chennai Metropolitan Development Authority: the planning authority for the Chennai metropolitan area, which approves building plans and layouts.

CMWSSB

Chennai Metropolitan Water Supply and Sewerage Board, known as Chennai Metrowater: the body that supplies water and sewerage connections in the city.

Flourrish can coordinate with qualified legal, tax and banking professionals where required. Professional advice should be obtained from the appropriate licensed advisor.