In the present work, nanocrystalline samples of Ti1−xCrxO2 (x=0, 0.02, 0.04, 0.06 and 0.08) were synthesized in anatase phase through simple and cost effective acid modified sol gel method. The influence of Cr doping on thermal, microstructural, electrical and magnetic properties was investigated in TiO2 host matrix. The surface morphology has revealed less agglomeration and considerable reduction in particle size in case of Cr doped TiO2 as compared to undoped TiO2 nanoparticles (NPs). Energy dispersive x-ray spectroscopy (EDS), Raman and X-ray photoelectron spectroscopy (XPS) established high purity, appropriate stoichiometry and oxidation states of the compositions. The dielectric properties of the nanoparticles were altered by the doping concentration, applied frequency as well as temperature variation. The variation in dielectric constant (ε′), dielectric loss (δ) and ac conductivity as a function of frequency and temperature at different doping concentration of Cr were interpreted in the light of Maxwell Wagner theory, space charge polarization mechanism and drift mobility of charge carriers. Both undoped and Cr doped TiO2 samples exhibit room temperature ferromagnetism (RTFM) that remarkably influenced by means of the Cr content. The significant enhancement in the magnetization was observed at 4% Cr doping. However, decrease in magnetization for higher doping signify antiferromagnetic interactions between Cr ions or superexchange mechanism. These results reveal that the oxygen vacancies play a crucial role to initiate the RTFM. Therefore, the present investigation suggests the potential applications of Cr doped TiO2 nanoparticles for spintronics application.