| NRI Help Desk |
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| Who is a non-resident Indian (NRI)? |
| An Indian Citizen who stays abroad for
employment or carrying on business or stays abroad under
circumstances indicating an intention for an uncertain duration of
stay abroad is a non-resident. (Persons posted in U.N. organizations
and officials deputed abroad by Central/State Governments and Public
Sector undertakings on temporary assignments are also treated as
non-residents). Non-resident foreign citizens of Indian Origin are
treated on par with non-resident Indian citizens (NRIs) for the
purpose of certain facilities. |
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| What are the various facilities available to NRIs? |
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Maintenance of bank accounts in
India. |
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Investments in securities/shares of,
and deposits with, Indian firms/companies. |
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Investments in immovable properties
in India. |
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| Who can purchase immovable property in India?
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| Under the general permission
available, the following categories can freely purchase
immovable property in India: |
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Non-Resident Indian (NRI)- that is a
citizen of India resident outside India. |
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Person of Indian Origin (PIO)- that is
an individual (not being a citizen of Pakistan or Bangladesh or
Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan),
who |
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1. at any time, held Indian passport, or
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2. who or either of whose father or grandfather was a citizen of India
by virtue of the Constitution of India or the Citizenship Act, 1955
(57 of 1955).
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The general permission, however, covers only purchase of residential
and commercial property and not for purchase of agricultural land /
plantation property / farm house in India.
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| Whether NRI/PIO can acquire agricultural land/ plantation property / farm house in India?
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No. Since general permission is not available to NRI/PIO to
acquire agricultural land/ plantation property / farm house in India,
such proposals will require specific approval of Reserve Bank and the
proposals are considered in consultation with the Government of India.
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| Do any documents need to be filed with Reserve Bank of India after purchase?
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No. An NRI / PIO who has purchased residential / commercial
property under general permission, is not required to file any
documents with the Reserve Bank.
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| How many residential / commercial properties can NRI / PIO purchase under the general permission?
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There are no restrictions on the number of residential / commercial properties that can be purchased.
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| Can an office of a foreign company purchase immovable property in India?
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A foreign company which has established a Branch Office or other place
of business in India, in accordance with FERA / FEMA regulations, can
acquire any immovable property in India, which is necessary for or
incidental to carrying on such activity. The payment for acquiring
such a property should be made by way of foreign inward remittance
through proper banking channel. A declaration in form IPI should be
filed with Reserve Bank within ninety days from the date of acquiring
the property. Such a property can also be mortgaged with an Authorised
Dealer as a security for other borrowings. On winding up of the
business, the sale proceeds of such property can be repatriated only
with the prior approval of Reserve Bank. Further, acquisition of
immovable property by entities who had set up Branch Offices in India
and incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan,
China, Iran, Nepal and Bhutan would require prior approval of Reserve
Bank to acquire such immovable property. However, if the foreign
company has established a Liaison Office, it can not acquire immovable
property . In such cases, Liaison Offices, can take property by way of
lease not exceeding 5 years.
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| How can an NRI / PIO make payment for purchase of residential / commercial property in India ?
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Payment can be made by NRI / PIO out of
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funds remitted to India through normal banking
channel or |
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funds held in NRE / FCNR (B) / NRO account
maintained in India |
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No payment can be made either by traveller’s cheque or by foreign
currency notes.
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No payment can be made outside India.
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| What is the procedure for obtaining Reserve Bank permission in this regard?
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Application for the purpose should be made by the concerned Indian
company to the Central Office of Reserve Bank in Mumbai [in Form ISD(R)].
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| Do non-resident Indian citizens require permission of Reserve Bank to acquire residential/commercial property in India?
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No.
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| Can immovable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India?
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Yes.
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| Can the residential/commercial properties be given on rent if not required for immediate use?
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Yes.
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| We are offering our services to NRI Clients which includes:
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Assist and Advice you. |
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We provide free service to view our projects in
and around Nagpur. |
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Assist and guide you in Documentation Services. |
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Purchase / Sale of Immovable Property in India by Non-Resident Indians Foreigners of Indian Origin and Other Foreigners, etc.
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Residential Purpose |
Commercial Purpose |
Funds for Investment in Property |
Letting out of property |
Proceeds Repatriable / Non - repatriable |
Non
Resident Indian |
No RBI Approval
required |
No RBI Approval
required |
a) Direct
remittance NRO / NRE A/C
b) Loans against NRE/ FCNR
Deposits for Residential
House only |
No RBI approval
required |
Repatriation of
Sale Proceeds equivalent to the Original Investment is permitted for a
maximum of two houses as well as Commercial Property after 3 years of
acquisition (i.e. possession) or payment of last instalment, which
ever is later, provided the investment is out of direct remittance or
NRE/ FCNRaccount Form IPI 8 to be submitted to RBI within 90 days of
sale of the property. |
Foreign
Citizen of Indian origin |
No prior RBI
approval only intimation to RBI in Form IPI-7 within 90 days of purchase
(Press Release dated 8/1/1992) |
No RBI approval
required Intimation to RBI in Form IPI-7 within 90 days of purchase
(08/06/93 Circular) |
a) Out of
NRE/FCNR A/C
or Foreign remittance
b) Loans against NRE/ FCNR
Deposits for Residential House only
c) With prior approval
of RBI from NRO Account |
No RBI approval
required |
-Do- |
Non
Citizen of Foreign origin i.e. Foreigners |
RBI approval
required (Circular dated 23/3/1992) |
RBI approval
required |
Direct
remittance |
RBI approval
required (Circular dated 23/3/1992) |
Non Repatriable |
OCB
a) Controlled by NRI 60%
b) Others |
RBI approval required
RBI approval required
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RBI approval required
RBI approval required
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Direct remittance
Direct remittance
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No RBI approval required
No RBI approval required
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Non Repatriable
Non Repatriable
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FERA
Companies |
No RBI approval
required (FERA 104/92-RB Dated, 29/1/92) |
No RBI approval
required |
Direct
remittance |
No RBI approval
(Circular Dated 23/3/1992) |
Non Repatriable |
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If you have any query, feel free to contact us or Email: nrihelp@gladstoneinfrastructure.com
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