- Who Is Non- Resident Indian (NRI) and Person of Indian Origin (PIO)?
- NRI: The Indian citizens living abroad for the purpose of education, income generation through jobs or business are recognized as NRI. The definition also includes the Indians that have been deployed in foreign lands by the government or public sector and the Indians staying outside India for an uncertain duration.
- PIO: Any foreign citizen holding an Indian passport at any point of time is also recognized and treated as of Indian origin. The same also holds true if the person’s father or paternal Grandfather wee Indian citizens as per the rules of Constitution f India/the Citizenship Act 1955 (57 of 1955). In such cases, such people will be treated like NRIS.
- Is Permission Required From RBI To Acquire/Purchase Immovable property In India?
The NRIs can avail of the general permission and it is valid for purchasing only a residential or commercial property in India for an NRI/PIO.
The purchase should be carried out using either the inward remittance in foreign exchange via general banking channels or by employing amount from NR/FCNR accounts in Indian banks.
- What are The Manner And Formalities Required Towards The Payments To Be Done Under General Permission Guidelines?
The party needs to file the declaration in form IPI7 and submit it at the central office of Reserve Banks at Mumbai within total period o90 days counted from the date of property purchase or final payment towards the same property along with certified copy of a document officially providing their transaction and bank certificate supporting the amount paid.
- Can Such Property Be Sold Without Permission Of Reserve Bank?
Yes the general permission is granted by the Reserve Bank regarding the same for the above-mentioned property. However, it is mandatory that during such sales the funds should be dispatched to India or paid from the balance of the NRE/FCNR accounts maintained in Indian banks.
- What Is The Procedure For Seeking Repatriation And Conditions Required Towards The Sale Proceeds?
The applications for required permission for dispatching sale proceeds needs to be made in form IPL8 within 90 days of the property sale. The request should e submitted to Central Office o Reserve Bank at Mumbai. Application for sales proceeds repatriating can be considered If there is a gap of at least 3 years between the actual sales and date of final purchase deed or the payment of final installment of the amount (whichever is late).
- Can Foreign Citizen of Indian Origin Acquire or Dispose Of Such Property By Way Of Gift to Relatives/Registered Charitable organization?
Yes, As per the guidelines f Reserve Ban the foreign citizens if Indian origin can either acquire or dispose of properties not exceeding 2 houses as a gift from or to a relative of Indian origin irrespective of the present country of residence. However the same is subjected to comply with the tax laws that are applicable.
- Can The Properties Be Given On Rent If Not Required For Immediate Use?
Yes According to Reserve Bank of India one can rent out any immovable property in India. The rental income or proceeds of investments from such income can be repatriated.