Investment & Other Facilities for Non-Resident Indians
| Investment in Immovable Property
|
Question-96: Do non-resident Indian citizens require permission of Reserve Bank to
acquire residential/commercial property in India ?
- Answer:
- No.
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Question-97: Do foreign citizens of Indian origin require permission of Reserve
Bank to purchase immovable property in India for their residential use ?
- Answer:
- Yes. However, Reserve Bank has granted general permission to foreign
citizens of Indian origin, whether resident in India or abroad, to
purchase immovable property in India for their bonafide residential
purpose. They are, therefore, not required to obtain separate permission
of Reserve Bank.
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Question-98: In what manner the purchase consideration for the residential immovable
property should be paid by foreign citizens of Indian origin under the
general permission ?
- Answer:
- 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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Question-99: What are the formalities required to be completed by foreign citizens
of Indian origin for purchasing residential immovable property in India
under the general permission ?
- Answer:
- They are required to file a declaration in the prescribed form with the
Central Office of Reserve Bank at Bombay within a period of 90 days
from the date of purchase of immovable property or final payment of
purchase consideration.
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Question-100: Can such property be sold without the permission of Reserve Bank ?
- Answer:
- Yes. Reserve Bank 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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Question-101: Can sale proceeds of such property if and when sold be remitted out of
India ?
- Answer:
- In resoect of residential properties purchased on or after 26th May
1993, Reserve Bank considers applications for repatriation of sale
proceeds upto the consideration amount remitted in foreing exchange
for the acquition 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 26th May 1993, will have to be credited to the
ordinary non-resident rupee account (NRO account) of the owner of the
property.
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Question-102: Are any conditions required to be fulfilled if repatriation of sale
proceeds is desired ?
- Answer:
- 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 instalment of consideration
amount, whichever is later.
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Question-103: What is the procedure for seeking such repatriation ?
- Answer:
- Applications for necessary permission for remittance of sale proceeds
should be made in the prescribed form to the Central Office of Reserve
Bank at Bombay within 90 days of the sale of the property.
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Question-104: Can foreign citizens of Indian origin acquire or dispose of residential
property by way of gift ?
- Answer:
- Yes. Under the general permission granted by Reserve Bank, properties
upto two houses can be acquired, transferred or disposed of 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.
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Question-105: Can foreign citizens of Indian origin acquire commercial properties in
India ?
- Answer:
- Yes. Under general permission granted by Reserve Bank properties other
than agricultural land/farm house/plantation property can be acquired
by foreigh 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 purchasers' NRE/FCNR
accounts maintained with banks in India and a declaration is submitted
to the Central Office of Reserve Bank in the prescribed form within a
period of 90 days from the date of purchase of the property/final
payment of purchase consideration.
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Question-106: Can they dispose of such properties ?
- Answer:
- Yes.
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Question-107: Can sale proceeds of such property sold would be permitted to be
remitted out of India ?
- Answer:
- Yes. Repatriation of original investment in respect of properties
purchased on or after 26th May 1993 will be allowed to be remitted
upto the consideration amount originally remitted from abroad provided
the property is sold after a period of three years from the date of
final purchase deed or from the date of payment of final instalment of
consideration amount, whichever is later. Applications for the purpose
are reqiored to be made to the Central Office of Reserve Bank within 90
days of the sale of property in the prescribed form.
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Question-108: Can the properties (residential/commercial) be given on rent if not
required for immediate sale ?
- Answer:
- Yes. Reserve Bank 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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