NRI
NRI Corner Why Invest in India
India is set to remain as one of the world’s fastest growing economies. There’s never been a better time to invest in real estate in India. Let us help you throughout the pre-and-post purchase processes.
Non – Resident Indian / Persons of Indian Origin
01.
Who qualifies as a Non-Resident Indian (NRI)?
As per Section 2(v) of the Foreign Exchange Management Act (FEMA), 1999, a "Person resident in India" is defined as follows:
1. An individual who has resided in India for more than one hundred and eighty-two days during the preceding financial year, excluding those:
a. Who left India or are residing outside India for employmentpurposes.
b. Engaged in business or vocation outside India.
c. Staying abroad for various purposes indicating an uncertain period of stay.
2 An individual who has arrived in or is staying in India for reasons other than employment, business, or any other purpose with
an uncertain duration.
3. Any person or body corporate registered or incorporated in India.
4. An office, branch, or agency in India owned or controlled by a person residing outside India.
5. An office, branch, or agency outside India owned or controlled by a person residing in India. Explanation: Section 2(u) defines "person" broadly to include individuals, Hindu undivided families, companies, firms, associations of persons, or any other artificial juridical person along with their offices, branches, or agencies.
1. An individual who has resided in India for more than one hundred and eighty-two days during the preceding financial year, excluding those:
a. Who left India or are residing outside India for employmentpurposes.
b. Engaged in business or vocation outside India.
c. Staying abroad for various purposes indicating an uncertain period of stay.
2 An individual who has arrived in or is staying in India for reasons other than employment, business, or any other purpose with
an uncertain duration.
3. Any person or body corporate registered or incorporated in India.
4. An office, branch, or agency in India owned or controlled by a person residing outside India.
5. An office, branch, or agency outside India owned or controlled by a person residing in India. Explanation: Section 2(u) defines "person" broadly to include individuals, Hindu undivided families, companies, firms, associations of persons, or any other artificial juridical person along with their offices, branches, or agencies.
02.
Who is considered a Person of Indian Origin (PIO)?
The Reserve Bank of India, through various FEMA Notifications under FEMA, 1999, defines a Person of Indian Origin as follows:
1.For opening non-resident bank accounts:A citizen of any country except Bangladesh or Pakistan who:
a. Held an Indian passport at any time.
b. Has a parent or grandparent who was an Indian citizen as per the Constitution of India or the Citizenship Act, 1955.
c. Is the spouse of an Indian citizen or a person meeting the
criteria mentioned above.
2.For investing in shares/debentures, etc. in India:
a. Same criteria as above.
For acquiring immovable property in India:
b. Same criteria as above, with additional exclusions of certain countries.
3.For establishing a branch or office in India:
a. Same criteria as above.
4.For acquiring a PIO Card:
a. Same criteria as above, with further details on ancestry and residency.
1.For opening non-resident bank accounts:A citizen of any country except Bangladesh or Pakistan who:
a. Held an Indian passport at any time.
b. Has a parent or grandparent who was an Indian citizen as per the Constitution of India or the Citizenship Act, 1955.
c. Is the spouse of an Indian citizen or a person meeting the
criteria mentioned above.
2.For investing in shares/debentures, etc. in India:
a. Same criteria as above.
For acquiring immovable property in India:
b. Same criteria as above, with additional exclusions of certain countries.
3.For establishing a branch or office in India:
a. Same criteria as above.
4.For acquiring a PIO Card:
a. Same criteria as above, with further details on ancestry and residency.
Acquistion and transfer of immovable property in
India by a person resident outside India
01.
Is it true that NRIs and PIOs don't need RBI permission to buy property in India?
Yes, both NRIs and PIOs can buy residential/commercial property in India without seeking permission from the Reserve Bank.
02.
Are there any forms or returns required to be submitted to RBI after property purchase?
No forms or returns are necessary after purchasing property under general permission.
03.
Are there limits on the number of properties NRIs/PIOs can purchase?
There are no restrictions on the number of properties they can buy.
04.
Can a foreign national of non-Indian origin be added as a second holder to property?
No, foreign nationals cannot be added as second holders
05.
Can foreign nationals of non-Indian origin buy property in India?
No, they cannot buy property, but they can lease residential accommodation for up to five years with RBI permission.
06.
Can NRIs/PIOs acquire agricultural land/plantation property/ farmhouse?
No, they cannot acquire such properties in India.
07.
Can NRIs/PIOs receive property as gifts?
Yes, they can receive residential/commercial property as gifts under general permission.
08.
Can they gift such property to others?
Yes, they can gift property to residents in India, but not to NRIs/PIOs.
09.
Can they hold inherited property from Indian residents?
Yes, they can hold inherited property.
10.
Can they hold inherited property from non-residents?
With RBI approval and compliance with foreign exchange laws, they can hold such property.
11.
Can NRIs sell property to residents/other NRIs/PIOs?
Yes, they can sell to residents/NRIs/PIOs.
12.
Can PIOs sell property to residents?
They can only sell to residents.
13.
Can PIOs sell to NRIs/PIOs?
No, they need RBI approval for such transfers
14.
Can foreign nationals sell property acquired with RBI permission?
They need RBI approval for any sale.
15.
Can NRIs/PIOs mortgage property in India?
Yes, they can mortgage property with authorized dealers/housing finance institutions.
16.
Can they mortgage property abroad?
No, they need RBI approval for such transactions.
17.
How can they pay for property in India?
They can pay from funds remitted to India or held in NRE/FCNR (B)/ NRO accounts, with the payment made outside India.
18.
Can refunds be credited to NRE accounts?
Yes, provided the original payment was made through remittance or NRE/FCNR (B) account.
19.
Can they get loans against NRE/FCNR (B) accounts for property purchase?
Under certain conditions, they can avail loans
20.
Can they avail housing loans from Indian institutions?
Yes, subject to terms and conditions.
21.
Can they repatriate sale proceeds?
Yes, subject to certain conditions and limits.
22.
Is there a lock-in period for property bought with remittance/NRE/ FCNR (B) funds?
No, there's no lock-in period.
23.
Is there a limit on repatriation of sale proceeds?
Yes, they can repatriate proceeds from up to two residential properties.
24.
Where can sale proceeds from gifted property be credited?
Sale proceeds from gifted property should be credited to NRE accounts.
25.
Can inherited property proceeds be remitted abroad?
Yes, with supporting documents and tax clearance certificates. These are some common questions regarding NRIs and PIOs and their transactions involving property in India.
