| Q. |
Do
non-resident Indian nationals require permission
of the Reserve Bank of India to acquireresidential/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? |
| |
|
| |
|
Q. |
Do non-resident Indian nationals
require permission of the Reserve Bank of India
to acquire residential/commercial property in
India? |
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? |
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? |
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? |
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? |
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? |
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? |
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? |
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? |
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? |
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? |
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? |
Ans. |
Yes |
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|
Q. |
Can sale proceeds of such property
be remitted out of India? |
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? |
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? |
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? |
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? |
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? |
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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