| Q. |
Do
non-resident Indian nationals require permission of the Reserve Bank of
India to acquire residential/commercial property in India? |
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| Q. |
Are
foreign nationals of Indian origin allowed to purchase immovable property in
India? |
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| Q. |
What
should be the method of payment for purchasing residential immovable
property in India by foreign nationals of Indian origin under the general
permission? |
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| Q. |
Are
there any formalities to be completed by foreign nationals of Indian origin
for purchasing residential immovable property in India? |
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| Q. |
Can
such property be sold without the permission of the Reserve Bank of India? |
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| Q. |
Can
the rental income from such property be remitted outside India? |
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| Q. |
Can
such property be sold without the permission of the Reserve Bank of India? |
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| Q. |
Can
sale proceeds of such property if and when sold be remitted out of India? |
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| Q. |
What
are the conditions required to be fulfilled for repatriation of sale
proceeds? |
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| Q. |
What
is the procedure for seeking such repatriation? |
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| Q. |
Can
foreign citizens of Indian origin acquire or dispose of residential property
by way of gifting it? |
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| Q. |
Can foreign citizens of Indian origin
acquire commercial properties in India? |
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| Q. |
Can
they dispose of such properties? |
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| Q. |
Can
sale proceeds of such property be remitted out of India? |
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| Q. |
Can
the properties (residential/commercial) be given on rent if not required for
immediate use? |
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| Q. |
Can
NRIs obtain loans for acquisition of a house/flat for residential purpose
from financial institutions providing housing finance? |
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| Q. |
Can
an dealer grant loans to NRIs for acquisition of a flat/house for
residential purposes? |
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| Q. |
Can
Indian companies grant loans to their NRI staff? |
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| Q. |
Can
an dealer grant housing loan to non-residents of Indian nationality where he
is a principal borrower with his resident close relative as a
co-obligate/guarantor, or where the land is owned jointly by such NRI
borrower with his resident close relative? |
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Q. |
Do
non-resident Indian nationals require permission of the Reserve Bank of
India to acquire residential/commercial property in India? |
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Ans. |
No permission is required by
non-resident Indian nationals to acquire immovable property in India. |
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Q. |
Are foreign
nationals of Indian origin allowed to purchase immovable property in India? |
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Ans. |
Yes, foreign nationals of Indian
origin, whether resident in India or abroad, have been granted general
permission to purchase immovable property in India. |
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Q. |
What should be
the method of payment for purchasing residential immovable property in India
by foreign nationals of Indian origin under the general permission? |
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Ans. |
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. |
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Q. |
Are there any
formalities to be completed by foreign nationals of Indian origin for
purchasing residential immovable property in India? |
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Ans. |
They are required to file a
declaration in Form IPI 7 with the Central Office of the Reserve Bank of
India at Mumbai within a period of 90 days from the date of purchase of
immovable property or final payment of purchase consideration alongwith a
certified copy of the document evidencing the transaction and bank
certificate regarding the consideration paid. |
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| Q. |
Can such
property be sold without the permission of the Reserve Bank of India? |
| Ans. |
Yes. The Reserve Bank of India
has granted general permission for sale of such property. However, where the
property is purchased by another foreign citizen of Indian origin, funds
towards the purchase consideration should either be remitted to India or
paid out of balances in NRE/FCNR accounts. |
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Q. |
Can the rental
income from such property be remitted outside India? |
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Ans. |
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. Restricted remittances are,
however, now permitted. |
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Q. |
Can such
property be sold without the permission of the Reserve Bank of India? |
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Ans. |
Yes. However, such property can
be sold to other foreign nationals of Indian origin provided funds towards
the purchase consideration are either remitted to India or paid out of
balances in NRE/FCNR account. |
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Q. |
Can sale
proceeds of such property if and when sold be remitted out of India? |
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Ans. |
In respect of residential
properties purchased on or after May 26, 1993, the Reserve bank of India
considers applications for repatriation of sale proceeds up to the
consideration amount remitted in foreign exchange for the acquisition of the
property for two such properties. The balance amount of sale proceeds if any
or sale proceeds in respect of properties purchased prior to May 26, 1993,
will have to be credited to the ordinary non-resident rupee account of the
owner of the property. The Reserve Bank of India also considers repatriation
of sale proceeds up to the consideration amount remitted in foreign exchange
for acquisition of commercial properties. |
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Q. |
What are the
conditions required to be fulfilled for repatriation of sale proceeds? |
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Ans. |
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 of
consideration amount, whichever is later. |
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Q. |
What is the
procedure for seeking such repatriation? |
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Ans. |
Application for necessary
permission for remittance of sale proceeds should be made in Form IPI 8 to
the Central Office of the Reserve Bank of India at Mumbai within 90 days of
the sale of the property. |
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Q. |
Can foreign
citizens of Indian origin acquire or dispose of residential property by way
of gifting it? |
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Ans. |
Yes. The Reserve Bank of India
has granted general permission to foreign citizens of Indian origin to
acquire or dispose of properties up to two houses by way of gift from or to
a relative who may be an Indian citizen or a person of Indian origin whether
resident in India or not, provided gift tax has been paid. |
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Q. |
Can foreign
citizens of Indian origin acquire commercial properties in India? |
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Ans. |
Yes. Under the general permission
granted by the Reserve Bank of India 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 purchaser's NRE/FCNR accounts maintained with banks in
India and a declaration is submitted to the Central Office of the Reserve
Bank of India in Form IPI 7 within a period of 90 days from the date of
purchase of the property/final payment of purchase consideration. |
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Q. |
Can they
dispose of such properties? |
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Ans. |
Yes |
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Q. |
Can sale
proceeds of such property be remitted out of India? |
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Ans. |
Yes. Repatriation of original
investment in respect of properties purchased by foreign citizens of Indian
origin on or after May 26, 1993 will be allowed to be remitted up to the
consideration amount originally remitted from abroad provided the property
is sold after a period of three years from the date of the final purchase
deed or from the date of payment of final of consideration amount, whichever
is later. Applications for the purpose are required to be made to the
Central Office of the Reserve Bank of India within 90 days of the sale of
property in Form IPI 8. |
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Q. |
Can the
properties (residential/commercial) be given on rent if not required for
immediate use? |
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Ans. |
Yes. The Reserve Bank of India
has granted general permission for letting out any immovable property in
India. The rental income or proceeds of any investment of such income has to
be credited to NRO account. |
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Q. |
Can NRIs
obtain loans for acquisition of a house/flat for residential purpose from
financial institutions providing housing finance? |
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Ans. |
The Reserve Bank of India has
granted general permission to certain financial institutions providing
housing finance. HDFC, LIC Housing Finance Ltd., etc., to grant housing
loans to non-resident Indian nationals for acquisition of a house/flat for
self-occupation subject to certain conditions. |
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Q. |
Can an dealer
grant loans to NRIs for acquisition of a flat/house for residential
purposes? |
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Ans. |
Dealers have been granted
permission to grant loans to non resident Indian nationals for acquisition
of house/flat for self-occupation on their return to India subject to
conditions. Repayment of the loan should be made within a period not
exceeding 15 years out of inward remittance though banking channels or out
of funds held in the investors’ NRE/FCNR/NRO account. |
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Q. |
Can Indian
companies grant loans to their NRI staff? |
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Ans. |
The Reserve Bank of India permits
Indian firms/companies to grant housing loans to their employees deputed
abroad and holding Indian passport subject to certain conditions. |
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Q. |
Can an
dealer grant housing loan to non-residents of Indian nationality where he is
a principal borrower with his resident close relative as a
co-obligate/guarantor, or where the land is owned jointly by such NRI
borrower with his resident close relative? |
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Ans. |
Yes. However, in such cases the
payment of margin money and repayment of the loan installments should be
made by the NRI. |
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