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NRI
Guidelines
Metro builders in india help you with
these guidelines which has been prepared for investment
properties in india in order to address various issues
relating to acquisition and transfer of immovable residential
property in India by a person resident outside India
under the provisions of the Foreign Exchange Management
Act, 1999. These FAQs seek to cover the broad spectrum
of issues relating to acquisition and transfer of immovable
property in India by a non-resident Indian (NRI) or
a foreign national of Indian origin (PIO) or a foreign
national of non-Indian origin as also by a person resident
in India who is not a citizen of India.
These FAQs cover the following
topics:
- Regulations/Directions issued by Reserve
Bank of India.
- Acquisition of immovable property in
India by way of purchase by a person resident outside
India
- Acquisition of immovable property in
India by way of gift by a person resident outside
India
- Acquisition of immovable property in
India by way of inheritance by a person resident outside
India
- Transfer of immovable property in India
by way of sale by a person resident outside India
- Transfer of immovable property in India
by way of gift by a person resident outside India
- Transfer of residential/commercial property
in India by way of mortgage by a person resident outside
India
- Mode of payment for purchase of residential/commercial
property in India by NRI/PIO
- Repatriation of sale proceeds of residential/commercial
property purchased by NRI/PIO
- Remittance of sale proceeds of residential/commercial
property received by way of gift by NRI/PIO
- Remittance of sale proceeds of inherited
immovable property by a person resident outside India
- Acquisition of immovable property for
carrying on a permitted activity in India
- Acquisition/Transfer of immovable property
in India by Foreign Embassies/Diplomats/Counsel Generals
- Other issues
- What should be the method of payment
for purchasing residential immovable property in India
by foreign nationals of Indian origin under the general
permission?
- Do non-resident Indian nationals require
permission of Reserve Bank to acquire residential
/ commercial property in India?
- Are foreign nationals of Indian origin
allowed to purchase immovable property in India?
- What way the Non-resident Indian can
finance the flat?
- Non-resident Indians are staying abroad
can the property be purchased through the agent or
through the Power of Attorney?
- Can such residential property be given
on rent if not required for immediate residential
use?
- Can the rental income from such property
be remitted outside India?
- Can such property be sold without the
permission of Reserve Bank?
- What should be the method of payment
for purchasing residential immovable property in India
by foreign nationals of Indian origin under the general
permission?
- Do non-resident Indian nationals require
permission of Reserve Bank to acquire residential
/ commercial property in India?
- Are foreign nationals of Indian origin
allowed to purchase immovable property in India?
- What way the Non-resident Indian can
finance the flat?
- Non-resident Indians are staying abroad
can the property be purchased through the agent or
through the Power of Attorney?
- Are there any formalities to be completed
by foreign nationals of Indian origin for purchasing
residential immovable property in India?
- Can such residential property be given
on rent if not required for immediate residential
use?
- Can the rental income from such property
be remitted outside India?
- Can such property be sold without the
permission of Reserve Bank?
- Ref: NRI City project. 1. Can the property
be rented to a non-NRI person? 2. Can it be sold to
a non-NRI person?
- Can Indian nationals buy a property
in the NRI City.
- Regulations/Directions issued
by Reserve Bank of India
- Where can one find regulations/directions
issued by Reserve Bank for acquisition and transfer
of immovable property in India by a person resident
outside India?
Regulations regarding acquisition and transfer
of immovable property in India by a person resident
outside India have been notified vide RBI Notification
No. FEMA 21/2000-RB dated May 3, 2000 as amended
vide Notification No. FEMA 64/2002-RB dated June
29, 2002 and Notification No. FEMA 65/2002-RB
dated June 29, 2002 and relevant directions issued
in the form of A.P. (DIR Series) Circulars. These
are available on RBI website: http://www.fema.rbi.org.in/
- Acquisition of immovable property
in India by way of purchase by a person resident outside
India
- Under the extant foreign exchange
regulations to whom is general permission available
for purchase immovable property in India?
General Permission is available to purchase only
a residential/commercial property in India to
a person resident outside India who is a citizen
of India (NRI) and who is a Person of Indian Origin
(PIO).
- Who is a Person of Indian Origin
(PIO)?
For the purpose of acquisition and transfer of
immovable property in India, a PIO means an individual
(not being a citizen of Pakistan or Bangladesh
or Sri Lanka or Afghanistan or China or Iran or
Nepal or Bhutan), who (i) at any time, held Indian
passport; or (ii) who or either of whose father
or grandfather was a citizen of India by virtue
of the Constitution of India or the Citizenship
Act, 1955 (57 of 1955).
- Is NRI/PIO who has purchased residential
or commercial property in India under general
permission required to file any documents with
Reserve Bank of India?
NRI/PIO who has purchased residential or commercial
property under general permission is not required
to file any documents with the Reserve Bank.
- Is there any restriction on number
of residential or commercial property that NRI/PIO
can purchase under the general permission available?
There is no restriction on number of residential
or commercial property that NRI/PIO can purchase
under the general permission available.
- Can a name of a foreign national
of non-Indian origin be added as a second holder
to a residential or commercial property purchased
by NRI/PIO?
No.
- Can a foreign national of non-Indian
origin resident outside India acquire any immovable
property in India by way of purchase?
No. Under section 2 (ze) of the Foreign Exchange
Management Act, 1999 'transfer' includes among
others, 'purchase'. Therefore, a foreign national
of non-Indian origin resident outside India cannot
acquire any immovable property in India by way
of purchase.
- Can a foreign national of non-Indian
origin acquire residential property on a lease
in India?
Yes. A Foreign National of non-Indian origin including
a citizen of Pakistan or Bangladesh or Sri Lanka
or Afghanistan or China or Iran or Nepal or Bhutan
may acquire only residential accommodation on
lease, not exceeding five years for which he/she
does not require prior permission of Reserve Bank
of India.
- Can a person resident outside India
(i.e. a NRI or a PIO or a foreign national of
non-Indian origin) acquire agricultural land/plantation
property/farm house in India by way of purchase?
No. A person resident outside India cannot acquire
by way of purchase agricultural land/plantation
property/farm house in India.
- Acquisition of immovable property in India by
way of gift by a person resident outside India
- Can NRI/PIO acquire residential or commercial
property by way of gift under the general permission
available?
Yes. Under general permission available NRI/PIO
may acquire residential/commercial property by
way of gift from a person resident in India or
a NRI or a PIO.
- Can a foreign national of non-Indian origin
resident outside India acquire residential/commercial
in India by way of gift?
No. Under section 2 (ze) of the Foreign Exchange
Management Act, 1999 'transfer' includes among
others, 'gift'. Therefore, a foreign national
of non-Indian origin resident outside India cannot
acquire residential/commercial property in India
by way of gift.
- Can a person resident outside India (i.e. a
NRI or a PIO or a foreign national of non-Indian
origin) acquire agricultural land/plantation property/farm
house in India by way of gift?
No. A person resident outside India cannot acquire
agricultural land/plantation property/farm house
in India by way of gift.
- Acquisition of immovable residential property
in India by way of inheritance by a person resident
outside India
- Can a person resident outside India (i.e. NRI
or PIO or foreign national of non-Indian origin)
hold any immovable property in India acquired
by way of inheritance from a person resident in
India?
Yes. A person resident outside India can hold
immovable property acquired by way of inheritance
from a person resident in India as per the provisions
of Section 6(5) of the Foreign Exchange Management
Act, 1999.
- Can a person resident outside India (i.e. NRI
or PIO or foreign national of non-Indian origin)
hold any immovable residential property in India
acquired by way of inheritance from a person resident
outside India?
With the specific approval of Reserve Bank a person
resident outside India may hold any immovable
property in India acquired by way of inheritance
from a person resident outside India, provided
the bequeathor had acquired such property in accordance
with the provisions of foreign exchange law in
force at the time of acquisition or under FEMA
regulations.
- Transfer of immovable property in India by way
of sale by a person resident outside India
- Under general permission available to whom
can NRI transfer by way of sale his residential/commercial
property?
NRI can transfer by way of sale residential/commercial
property in India to a person resident in India
or to a NRI or a PIO. Under general permission
available to whom can a PIO transfer his residential/commercial
property by way of sale? PIO can transfer by way
of sale residential/commercial property in India
only to a person resident in India.
- Can a PIO transfer by way of sale his residential/commercial
property to a NRI or a PIO?
No. He would need to seek Reserve Bank prior approval
for transfer by way of sale residential/commercial
property in India to a NRI or a PIO.
- Can a foreign national of non-Indian origin
whether resident in India or outside India transfer
by way of sale residential/property in India acquired
with the specific permission of Reserve Bank to
a person resident in India or outside India?
No. A foreign national of non-Indian origin whether
resident in India or outside India would need
to seek prior approval of Reserve Bank for transfer
by way of sale residential/property in India acquired
with the specific permission of Reserve Bank to
a person resident in India or outside India.
- Under general permission available to whom
can NRI/PIO transfer by way of sale his agricultural
land/plantation property/farm house in India?
Under the general permission available NRI/PIO
may transfer by way of sale his agricultural land/plantation
property/farm house in India to a person resident
in India who is a citizen of India.
- Can a foreign national of non-Indian origin
resident outside India transfer by way of sale
agricultural land/plantation property/farm house
acquired by him in India?
A foreign national of non-Indian origin resident
outside India would need to seek prior approval
of Reserve Bank for transfer, by way of sale,
agricultural land/plantation property/farm house
acquired in India.
- Transfer of immovable residential property in
India by way of gift by a person resident outside
India
- Under general permission available can NRI/PIO
transfer his residential or commercial property
by way of gift?
Yes. NRI/PIO may transfer by way of gift residential/commercial
property in India to a person resident in India
or to a NRI or a PIO.
- Under general permission available to whom
can NRI/PIO transfer by way of gift agricultural
land/plantation property/farm house in India?
Under the general permission available NRI/PIO
may transfer by way of gift agricultural land/plantation
property/farm house in India to a person resident
in India who is a citizen of India.
- Can a foreign national of non-Indian origin
resident outside India transfer by way of gift
agricultural land/plantation property/farm house
acquired by him in India? No. A foreign national
of non-Indian origin resident outside India would
need to seek prior approval of Reserve Bank for
transfer by way of gift agricultural land/plantation
property/farm house acquired by him in India.
- Transfer of residential/commercial
property in India by way of mortgage by a person resident
outside India
- Can NRI/PIO transfer by way of mortgage
his residential commercial property in India to
an authorized dealer/housing finance institution
in India?
Yes.
- Can NRI/PIO transfer by way of mortgage
his residential or commercial property in India
to a party abroad?
No. He should seek prior approval of RBI.
- Can a foreign national of
non-Indian origin resident in India or outside
India transfer by way of mortgage his residential/commercial
property in India acquired with the specific approval
of Reserve Bank to a party in India or abroad?
No. He should seek prior approval of RBI. However,
immovable property purchased by a person resident
outside India who has established a Branch Office
or other place of business for carrying on in
India any activity in accordance with FERA/FEMA
regulations, may under general permission available,
mortgage such a property with an authorized dealer
as a security for any borrowing.
- Mode of payment for purchase of residential/commercial
property in India by NRI/PIO
- Under the general permission available what
is mode of payment for purchase of residential/commercial
property in India by NRI/PIO?
Under the general permission available NRI/PIO
may purchase residential/commercial property in
India out of funds remitted to India through normal
banking channel or funds held in his NRE/FCNR
(B)/NRO account. No consideration shall be paid
outside India.
- Can refund of application/earnest money/purchase
consideration made by the house building agencies/seller
on account of non-allotment of flat/plot/cancellation
of bookings/deals for purchase of residential/commercial
property together with interest, if any (net of
income tax payable thereon) be credited to NRE
account?
Yes, provided original payment was made by way
of inward remittance or by debit to NRE/FCNR (B)
account. For this purpose no permission of Reserve
Bank is required and they may approach the Authorised
Dealer directly in the matter. (Please refer to
A. P. (DIR Series Circular No. 46 dated November
12, 2002).
- Can NRI/PIO for the purpose of acquisition
of flat/house in India for his own residential
use avail of loan from authorized dealer against
the security of funds held in his NRE Fixed Deposit
account/FCNR (B) account?
Yes, subject to certain terms and conditions.
- Can NRI/PIO, avail of housing loan in rupees
from an authorized dealer or housing finance institution
in India approved by the National Housing Finance
Bank for purchase of residential accommodation
or for the purpose of repairs/renovation/improvement
of residential accommodation?
Yes, subject to certain terms and conditions.
Such loans can be repaid by the borrower by way
of inward remittance through normal banking channel
or by debit to his NRE/FCNR (B)/NRO account or
out of rental income derived from renting out
such property. Such loan can also be repaid by
the borrower's close relatives through their account
in India by crediting the borrower's loan account.
(Please refer to Regulation 8 to Notification
No. FEMA 4/2000-RB dated 3rd May 2000 and A.P.
(DIR Series) Circular No.95 dated April 20, 2003
and A.P. (DIR Series) Circular No.94 dated May
25, 2003).
- Can NRI avail of housing loan in rupees from
his employer in India? Yes, subject to certain
terms and conditions (Please refer to Regulation
8A to Notification No. FEMA 4/2000-RB dated 3rd
May 2000 and A.P. (DIR Series Circular No.27 dated
October 10, 2003).
- Repatriation of sale proceeds of residential/commercial
property purchased by NRI/PIO
- Can NRI/PIO repatriate the sale proceeds of
residential/commercial property in India acquired
by way of inward remittance through normal banking
channel or by debit to NRE/FCNR (B)/NRO account?If
so, what is the quantum?
NRI/PIO may repatriate the sale proceeds of residential/commercial
property in India acquired by way of inward remittance
through normal banking channel or by debit to
NRE/FCNR (B) account. The amount to be repatriated
should not exceed the amount paid for acquisition
of residential/commercial property (a) in foreign
exchange received through normal banking channel
or by debit to FCNR (B) account or (b) the foreign
currency equivalent, as on the date of payment,
of the amount paid by debit to NRE account. The
sale proceeds of residential/commercial property
in India acquired by way of debit to NRO account
cannot be repatriated and should be credited to
NRO account only.
- The rupee loan availed by NRI for purchase
of residential accommodation was repaid either
by inward remittance or by debit to NRE/FCNR (B)
account. Can the sale proceeds of such property
be repatriated?
Yes. Repayment of loan in foreign exchange is
treated as equivalent to the foreign exchange
received for purchase of residential accommodation.
- Is there any lock in period for sale of residential/commercial
property purchased out of inward remittance/debit
to NRE/FCNR(B) account?
No lock in period is applicable for sale of such
property.
- Is there any restriction on repatriation of
sale proceeds of residential property purchased
by NRI/PIO out of funds remitted to India through
normal banking channel or funds held in his NRE/FCNR
(B) account?
Yes. Repatriation of sale proceeds is restricted
to not more than two residential properties.
- Remittance of sale proceeds of residential/commercial
property received by way of gift by NRI/PIO
- Into which account the sale proceeds of residential/commercial
property received by way of gift by NRI/PIO can
be credited?
The sale proceeds of residential/commercial property
received by way of gift by NRI/PIO should be credited
to NRO account only
- Remittance of sale proceeds of immovable property
inherited by a person resident outside India
- Can sale proceeds of any immovable property
inherited by NRI/PIO from a person resident in
India be remitted abroad?
Yes. Amount not exceeding USD one million, per
calendar year subject to production of documentary
evidence in support of inheritance and Tax clearance
certificate/no objection certificate from Income
Tax authority to authorized dealer for remittances.
However, if a PIO is a citizen of Pakistan or
Bangladesh or Sri Lanka or Afghanistan or China
or Iran he should seek prior approval of Reserve
Bank with documentary evidence in support of inheritance
and tax clearance/no objection certificate from
Income Tax authority. This remittance facility
is not available to a citizen of Nepal or Bhutan.
(Please refer to Regulation 4 (3) to Notification
No. FEMA 13/RB-2000 dated 3rd May 2000)
- Can sale proceeds of any immovable property
in India inherited, by a foreign national of non-Indian
origin resident outside India, from a person resident
in India be repatriated by him?
Yes. Amount not exceeding USD one million, per
calendar year subject to production of documentary
evidence in support of inheritance and Tax clearance
certificate/no objection certificate from Income
Tax authority to authorized dealer for remittances.
However, a citizen of Pakistan or Bangladesh or
Sri Lanka or Afghanistan or China or Iran shall
seek prior approval of Reserve Bank with documentary
evidence in support of inheritance and tax clearance/no
objection certificate from Income Tax authority.
This remittance facility is not available to a
citizen of Nepal or Bhutan. (Please refer to Regulation
4 (2) (ii) to Notification No. FEMA 13/RB-2000
dated 3rd May 2000)
- Can sale proceeds of any immovable property
in India inherited, by a person resident outside
India (i.e. NRI or PIO or foreign national of
non-Indian origin resident outside India), from
a person resident outside India be repatriated
by him or his successor?
No. He needs to seek prior approval of Reserve
Bank with documentary evidence in support of inheritance
and tax clearance/no objection certificate from
Income Tax authority.
- Acquisition of immovable property for carrying
on a permitted activity in India
- Can a person resident outside India who has
established a Liaison Office in India in accordance
with FERA/FEMA regulations purchase immovable
property?
No.
- Can a person resident outside India who has
established a Branch Office or other place of
business for carrying on in India any activity
in accordance with FERA/FEMA regulations purchase
commercial/residential property?
Yes, provided it is necessary for or incidental
to carrying on such activity and all applicable
laws, rules, regulations or directions are duly
complied with. The purchase price should be paid
by way of inward remittance through proper banking
channel. A declaration in form IPI should be filed
with Reserve Bank within ninety days from the
date of acquisition of commercial/residential
property.
- Can such a property referred to in Q. No.41
be mortgaged with an authorized dealer as a security
for any borrowing?
Yes, RBI has granted general permission for such
a mortgage.
- On winding up of the business can the sale
proceeds of such property be repatriated?
Yes, with prior approval of Reserve Bank.
- Acquisition/Transfer of immovable property in
India by Foreign Embassies/Diplomats/Counsel Generals
- Can Foreign Embassies/Diplomats/Counsel General
purchase/sell immovable property in India?
Yes. Under general permission available Foreign
Embassies/Diplomats/Counsel General may acquire
any immovable property other than agricultural
land/plantation property/farm house in India.
Such property may be purchased/sold provided prior
clearance from the Government of India, Ministry
of External Affairs has been obtained for such
purchase/sale. The consideration for purchase
of such property should be paid by way of inward
remittance through normal banking channel.
- Other issues
- Can NRI/PIO rent out the residential/commercial
property purchased out of foreign exchange/rupee
funds, if not required for immediate use?
Yes. Rent received, being current income may be
credited to NRO/NRE account or remitted abroad.
- Can NRI who had acquired immovable property
viz., residential/commercial property/agricultural
land/plantation property/farm house in India while
he was a person resident in India continue to
hold or transfer such immovable property? In which
account the sale proceeds may be credited?
Yes, under the provisions of Section 6 (5) of
the Foreign Exchange Management Act, 1999 NRI
who had acquired immovable property in India while
he was a person resident in India may continue
to hold such property. Under the general permission
available he may transfer by way of sale or gift
agricultural land/plantation property/farm house
in India to a person resident in India who is
a citizen of India and may transfer by way of
sale or gift residential/commercial property in
India to a person resident in India or to a NRI/PIO.
The sale proceeds may be credited to NRO account.
- Can a PIO who had acquired immovable property
viz., residential/commercial property/agricultural
land/plantation property/farm house in India while
he was a person resident in India continue to
hold or transfer such immovable property? In which
account the sale proceeds may be credited?
Yes, under the provisions of Section 6 (5) of
the Foreign Exchange Management Act, 1999, PIO
who had acquired immovable property in India while
he was a person resident in India may continue
to hold such property. Under the general permission
available he may transfer agricultural land/plantation
property/farm house in India by way of sale or
gift to a person resident in India who is a citizen
of India and residential/commercial property in
India by way of sale to a person resident in India
and way of gift residential/commercial property
in India to to a person resident in India or to
a NRI/PIO. However, if a PIO is a citizen of Pakistan
or Bangladesh or Sri Lanka or Afghanistan or China
or Iran or Nepal or Bhutan he should seek prior
approval of Reserve Bank for transfer of such
immovable property in India. The sale proceeds
may be credited to NRO account.
- Can the sale proceeds of the immovable property
referred to in Q. Nos. 46 and 47credited to NRO
account of NRI/PIO, be remitted abroad?
Yes, provided the immovable property was held
for a period not less than ten years.
What if such an immovable property was held for
less than ten years?
If such a property acquired out of rupee funds
is sold after being held for less than ten years,
remittance can be made, if the sale proceeds were
held for the balance period in NRO account (Savings/Term
Deposit) or in any other eligible investment,
provided such investment is traced to the sale
proceeds of the immovable property.
- Under erstwhile FERA, foreign nationals of
non-Indian origin resident in India or outside
India had with the specific approval of Reserve
Bank acquired residential property in India. While
they can continue to hold the same under the provisions
of Section 6 (5) of the FEMA, 1999 can they transfer
such property?
Yes. only with the prior approval of Reserve Bank.
- Is a person resident in India governed by the
provisions of Foreign Exchange Management (Acquisition
and transfer of immovable property in India) Regulations,
2000?
A person resident in India who is a citizen of
Pakistan or Bangladesh or Sri Lanka or Afghanistan
or China or Iran or Nepal or Bhutan is governed
by the provisions of Foreign Exchange Management
(Acquisition and transfer of immovable property
in India) Regulations, 2000.
- Where are the terms a 'person resident in India'
and a 'person resident outside India' defined?
Section 2 (v) and section 2 (w) of the Foreign
Exchange Management Act, 1999 defines a 'person
resident in India' and a 'person resident outside
India' respectively.
- What is meant by a person resident in India?
From FEMA angle, a person resident in India means
a person residing in India for more than one hundred
and eighty-two days during the course of the preceding
financial year (April-March) and who has come
to or stays in India either for taking up employment,
carrying on business or vocation in India or for
any other purpose, that would indicate his intention
to stay in India for an uncertain period. In other
words, to be treated as 'a person resident in
India', under FEMA a person has not only to satisfy
the condition of the period of stay (being more
than 182 days during the course of the preceding
financial year) but has also to comply with the
condition of the purpose/intention of stay.
- Does Reserve Bank determine the residential
status of a person for the purpose of acquisition
of immovable property in India?
No. Under FEMA residential status is determined
by operation of law. The onus is on an individual
to prove his/her residential status if questioned
by any other authority.
- If a foreign national (except a citizen of
Pakistan, Bangladesh, Sri Lanka, Afghanistan,
China, Iran, Nepal and Bhutan) is a person resident
in India as per the provisions of Section 2 (v)
(i) B of the Foreign Exchange Management Act,
1999 does he require approval of RBI to purchase
any immovable property in India?
No, he does not require approval from Reserve
Bank from FEMA angle. However, approvals if any,
required in terms of regulations prescribed by
other authorities such as the concerned State
Government etc., will have to be obtained by him/her.
- What should be the method of payment
for purchasing residential immovable property in India
by foreign nationals of Indian origin under the general
permission?
The purchase consideration should be met either out
of inward remittances in foreign exchange through
normal banking channels or out of funds from NRE/FCNR
accounts maintained with banks in India
- Do non-resident Indian nationals
require permission of Reserve Bank to acquire residential
/ commercial property in India?
No permission is required by non-resident Indian nationals
to acquire immovable Property in India.
- Are foreign nationals of Indian origin
allowed to purchase immovable property in India?
Yes, foreign nationals of Indian origin, whether resident
in India or abroad, have been granted general permission
to purchase immovable property in India
- What way the Non-resident Indian can
finance the flat?
The purchase of the flats can be financed from the
fresh remittance through the normal banking channels
or from payment from original non-resident account
or from Non-resident (External) Accounts. When the
flat is under construction, it may be possible to
get instalment facilities from the builder. Loan may
also be available in India for purchase of flats,
for example from Housing Development Finance Corporation,
ANZ Grindlays Bank, Citi Bank etc. Non-resident Indians
who are citizens of India (India Passport holders)
are eligible for housing finance for the acquisition
of an immovable property or construction of a new
house, or a flat for their occupation or for that
of their family in India. But the HDFC also considers
granting of loans to non-resident Indians even if
they are abroad, provided a family member of his or
her in India is made a co-borrower and a power of
attorney is given to his representative in India
- Non-resident Indians are staying abroad
can the property be purchased through the agent or
through the Power of Attorney?
The non-resident Indians who are staying abroad may
enter into an agreement through their relatives and/or
by executing the Power of Attorney in their favour
as it is not possible for them to be present for completing
the formalities of purchase (negotiating with the
builder or Developer, drafting and signing of agreements,
taking possession, etc.) These formalities can be
completed through some known person who can be given
the Power of Attorney for this purpose. Power of Attorney
should be executed on the stamp paper before the proper
authorities in foreign countries. Power of Attorney
cannot be drafted on the stamp paper bought in India.
- Can such residential property
be given on rent if not required for immediate residential
use?
YES
- Can the rental income from such property
be remitted outside India?
No. Such income cannot be remitted abroad and will
have to be credited to the ordinary non-resident rupee
account of the owner of the property.
- Can such property be sold without
the permission of Reserve Bank?
Yes. However, such property can be sold to another
foreign national of Indian origin provided funds towards
the purchase consideration are either remitted to
- What should be the method of payment
for purchasing residential immovable property in India
by foreign nationals of Indian origin under the general
permission?
The purchase consideration should be met either out
of inward remittances in foreign exchange through
normal banking channels or out of funds from NRE/FCNR
accounts maintained with banks in India
- Do non-resident Indian nationals
require permission of Reserve Bank to acquire residential
/ commercial property in India?
No permission is required by non-resident Indian nationals
to acquire immovable Property in India.
- Are foreign nationals of Indian
origin allowed to purchase immovable property in India?
Yes, foreign nationals of Indian origin, whether resident
in India or abroad, have been granted general permission
to purchase immovable property in India
- What way the Non-resident Indian
can finance the flat?
The purchase of the flats can be financed from the
fresh remittance through the normal banking channels
or from payment from original non-resident account
or from Non-resident (External) Accounts. When the
flat is under construction, it may be possible to
get instalment facilities from the builder. Loan may
also be available in India for purchase of flats,
for example from Housing Development Finance Corporation,
ANZ Grindlays Bank, Citi Bank etc. Non-resident Indians
who are citizens of India (India Passport holders)
are eligible for housing finance for the acquisition
of an immovable property or construction of a new
house, or a flat for their occupation or for that
of their family in India. But the HDFC also considers
granting of loans to non-resident Indians even if
they are abroad, provided a family member of his or
her in India is made a co-borrower and a power of
attorney is given to his representative in India
- Non-resident Indians are staying
abroad can the property be purchased through the agent
or through the Power of Attorney?
The non-resident Indians who are staying abroad may
enter into an agreement through their relatives and/or
by executing the Power of Attorney in their favour
as it is not possible for them to be present for completing
the formalities of purchase (negotiating with the
builder or Developer, drafting and signing of agreements,
taking possession, etc.) These formalities can be
completed through some known person who can be given
the Power of Attorney for this purpose. Power of Attorney
should be executed on the stamp paper before the proper
authorities in foreign countries. Power of Attorney
cannot be drafted on the stamp paper bought in India.
- Are there any formalities to
be completed by foreign nationals of Indian origin
for purchasing residential immovable property in India?
They are required to file a declaration in form IPI
7 with the Central Office of Reserve Bank at Bombay
within a period of 90 days from the date of purchase
of immovable property.
- Can such residential property
be given on rent if not required for immediate residential
use?
YES
- Can the rental
income from such property be remitted outside India?
No. Such income cannot be remitted abroad and will
have to be credited to the ordinary non-resident rupee
account of the owner of the property.
- Can such property be sold
without the permission of Reserve Bank?
Yes. However, such property can be sold to another
foreign national of Indian origin provided funds towards
the purchase consideration are either remitted to
- Ref: NRI City project.
1. Can the property be rented to a non-NRI person?
2. Can it be sold to a non-NRI person?.
Yes you can rent/sell it
to a non-NRI person.
- Yes! An
Indian Nationals can buy a property in NRI City.
Yes! An Indian Nationals can buy
a property in NRI City.
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