Non-Resident Indians (NRIs) to consider investing in the country. And the boom times aren't limited to just the metros. The concept of ultra-modern private integrated townships and world class infrastructure has taken wing in a big way in practically all cities and satellite townships in the country, thereby making investments in property in India most lucrative.
Q1: 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.
Ans: Yes, foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India..
Q3: What should be the method of payment for purchasing residential immovable property in India by foreign nationals of Indian origin?
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.
Q4: 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.
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.
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.
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.
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.
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.
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.