Who is a NRI?
A NRI is a person resident outside India who is either a citizen
of India or a person of Indian origin. A NRI is an Indian
Citizen who has migrated to another Country. For all official
purpose the Government of India considers Indian National away
from India for more than 182 days, in a year.
Who is a PIO?
A person of Indian origin means an individual (not being a
citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or
China or Iran or Nepal or Bhutan) who:
i) Held an Indian Passport at any time, or
ii) Who or whose father or paternal grand father was a citizen
of India by virtue of the Constitution of India or the
Citizenship Act, 1955.
What are the types of Property can a NRI/PIO purchase in
India?
There are no restrictions on the numbers of
Residential/Commercial Properties (other than agricultural
land/farm house/plantation) that can be purchased.
Does NRI/PIO require permission of The Reserve Bank to
acquire residential/ commercial property in India?
No. All Indian citizens are entitled to buy property in India,
irrespective of their residential status.
How should the purchase of residential immovable
property be paid for by NRI/ PIO under the general permission?
The purchase consideration should be met either out of inward
remittance in foreign exchange through normal banking channels,
or out of funds from NRE/FCNR(B)/NRO accounts maintained with
banks in India.
Is there are any Lock in period for such investment?
Currently there is no lock in period.
Can NRI/PIO sell their purchased property without the
permission of Reserve Bank?
Yes.
Reserve Bank of India has granted general permission for sale of
such property to the following categories:-
To a NRI
To a PIO (If the seller is a PIO, then a prior approval is
required from RBI)
To a person Resident of India
Can the sale proceeds of such property (if and when
sold) be remitted/repatriated out of India?
Yes the sale proceeds can be remitted/repatriated out of India
In the event property acquired out of foreign exchange source
i.e. remittance through normal banking channels/ debit to NRE/
FCNR(B) accounts, the amounts to be repatriated should not
exceed the amount paid for such property from such source.
However, repatriation of sale proceeds purchased out of foreign
exchange is restricted to not more that two residential
properties, in a block of one year, with a facility of crediting
the Capital gain to the NRO account.
Again in the event the property was acquired out of Rupee
source, an amount not exceeding USD one million, per financial
year, subject to tax compliance, out of balance held in NRO
account, may be remitted/repatriated.
Can the properties (residential/commercial) be given on
rent if not required for immediate use?
Yes. The Reserve Bank has granted general permission for letting
out any immovable property in India.
Does any document require to be examined before buying a
property?
Before you buy a property, you must get a title and document
search properly conducted by hiring a competent advocate. You
cannot examine the documents on your own, and thus, professional
assistance needs to be taken.
What is meant by Carpet
Area, Built-up Area and Super Built-up Area?
Carpet Area: It refers to the area of the apartment, excluding
the area of the walls.
Built-up Area: It comprises the apartment area as well as the
area of the walls.
Super Built-up Area: This term is used only when referring to
multi-dwelling units. It includes the apartment area, the area
of the walls and the area under common spaces like lobby,
staircase, elevators, etc.
What documents need to be verified before making any
purchase of a property? The
following documents must be properly verified by an advocate
before buying a property:
Approved Layout Plan
Approved Building Plan
Title Ownership Documents
Complete Search
What is meant by Stamp Duty?
Stamp Duty refers to charges in the form of taxes levied by the
State Government.
Which instruments influence the payment of Stamp Duty on
the market value of the property?
The following instruments have a great influence on the payment
of Stamp Duty on the market value of the property:
Agreement to Sell
Conveyance Deed
Exchange of Property
Gift Deed
Partition Deed
Power of Attorney
Lease Transfer
What is meant by a Freehold Property?
A Freehold Property refers to any plot or flat, where there is a
sole proprietary ownership with no conditions under the land
laws, and there is no less or lessee involved.
How can I verify if the documents submitted by the
seller are authentic?
You might be required to hire an advocate to render his
professional services for the proper examination of the
authentication of the documents submitted by the seller.
