An Indian citizen who holds a valid Indian passport and stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident Indian (NRI). non-resident foreign citizens, of Indian origin, are treated at par with nonresident.
For the purposes of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India, a foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if,
He, at any time, held an Indian passport, or
He or either of his parents or any of his grandparents was citizen of India
by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1955).
Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their NRI spouses.
For investments in immovable properties.
(a foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka, or Nepal), is deemed to be of Indian origin if,
He held an Indian passport at any time, or
He or his father or paternal grand-father was a citizen of India by virtue of the (Constitution of India or the Citizenship Act, 1955 (57 of 1955).
If you are of Indian Origin and hold an Indian Passport, then you are entitled to buy property in India. If you are an overseas passport holder like a US Passport or a British Passport Holder, then you need to have a PIO Card. This can be applied for at the Indian Embassy or Consulate in your country where you are residing or you could enquire with them for further details. It is sufficient if you have your father’s or mother’s passport or birth certificate or any other proof of their being an Indian Citizen. It is essential to carry that proof with you.
Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers’ NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the central office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.
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
They are required to file a declaration in form IPI 7 with the central office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
Yes, as an NRI you can apply for a home loan in India. Getting a home loan is as easy for an NRI as a resident Indian. Some lender may, however, ask for a local power of attorney holder.
Yes. The Reserve bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.
If an NRI wishes to sell his property and take away the profits, then:
IF PROPERTY WAS BOUGHT IN FOREIGN EXCHANGE.
He can take away the proceeds.
Sale is restricted to only two properties
Sales allowed only after three years.
IF PROPERTY WAS BOUGHT IN INDIAN RUPEES.
Money must be kept in India.
IF PROPERTY FOR COMMERCIAL PURPOSES IS BOUGHT IN FOREIGN EXCHANGE.
Any or all can be sold
Entire proceeds can be transferred
NRIs and PIOs can freely acquire immovable property by way of gift either from a person resident in India or an NRI or a PIO. However, the property can only be commercial or residential. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India through gift.
Refund of application / earnest money/ purchase consideration 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), is allowed provided the original payment was made out of NRE / FCNR account of the account holder or remittance from outside India through normal banking channels and the authorized dealer is satisfied with the genuineness of the transaction..
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 favor 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.
Overseas Corporate Bodies (OCBs) are those which are predominantly owned by individuals of Indian nationality or origin residing outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin residents outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocable held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities are granted to NRI’s are also available with certain exceptions to OBCs as long as the ownership / beneficial interest held in them by NRIs continue to be 60%
Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.
