Posted by Admin on January, 21, 2014
Are you a Non-Resident Indian (NRI) and uninformed of your rights over making a real estate investment in India? And, are you completely aware of what kind of properties you can buy or sell in India? Well, several others like you who are looking forward to either make or exit their investments in India have raised queries in this regard.
In order to explain the legalities of purchasing in India, it is first required to understand, who as per law is recognised as a NRI. “The persons residing outside India are categorised as Non- Resident Indians (NRI) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin. While NRIs and PIOs can definitely acquire/dispose properties in India, a foreign national of non-Indian origin is also covered by the relevant notifications in our country,” says a Legal Expert.
Answering one of the users enquiring about whether a NRI/PIO requires seeking permission from the Reserve Bank of India (RBI) in order to sell their property, the legal expert says, “As long as the property is being sold to a resident of India, a NRI or a PIO, one does not need to seek any permission from RBI.”
Giving an insight on the legal rights of NRIs for investing in India, “Any NRI, holding an Indian Passport, does not require prior permission from the RBI to buy residential or commercial immovable property in India. The purchase consideration may be paid either by remittance of funds from abroad through normal banking channels or out of the Non-Resident External (NRE), Foreign Currency Non Resident (FCNR) or Non-Residential Ordinary (NRO) accounts.”
“NRI of Indian nationality does not require any permission for acquisition, transfer or disposal of property by the way of gift of immovable property. However, this property should not be a farmhouse, an agricultural land or a plantations property. A declaration on form IPI 7 is required to be filed with RBI within 90 days of the date of purchase, in order to acquire a commercial property for carrying out any industrial, commercial or trading activities by proprietary partnership firm in India.”
In fact, not only sell, but any NRI/PIO can even rent out their property without the approval of the RBI. The rent received can be credited to Non-Resident Ordinary (NRO)/Non-Resident External (NRE) account or even dispatched abroad.
This entry was posted on January, 21, 2014 at 15 : 14 pm and is filed under NRI Property Investment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response from your own site.
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