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Non Resident Indians (NRI’s):

NRI guidelines have been prepared in order to address various issues relating to acquisition and transfer of immovable property in India by a person resident outside India under the provisions of the Foreign Exchange Management Act, 1999. These FAQs seek to cover the broad spectrum of issues relating to acquisition and transfer of immovable property in India by a non-resident Indian (NRI) or a foreign national of Indian origin (PIO) or a foreign national of non-Indian origin as also by a person resident in India who is not a citizen of India

FAQ on acquisition of residential / commercial premises in India by Non Resident Indians ("NRI") & Person of Indian Origin ("PIO")

  • Who is a non-resident Indian (NRI)?

    Ans: An Indian citizen who stays abroad for employment / carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad, is a non-resident. (Persons posted in U. N. O and officials deputed abroad by Central / State Government 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-residential Indian Citizens (NRIs) for the purpose of certain facilities.

  • Who is a person of Indian origin?

    Ans: A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if, he has, at any time, held an Indian passport, or he or either of his parents or any of his grandparents were citizens of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955).

    A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the bank accounts are opened or investments in shares/securities in India are made by such persons solely or jointly with their NRI spouses.
    Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens for the purpose of certain facilities.

  • Do NRIs and PIOs require permission of Reserve Bank to acquire residential/commercial property in India?

    Ans: NRIs and POIs do not require permission from RBI to acquire residential / commercial premises in India (other than agricultural land/farm house/plantation property). A person resident outside India acquiring property to carry on business from India has to file with the Reserve Bank a declaration in Form IPI within ninety days from the date of acquisition of immovable property. A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire immovable property without prior permission of Reserve Bank. However, he can take on lease an immovable property for not more than 5 years.

  • Can the sales proceeds of residential / commercial premises be remitted out of India?

    Ans: In respect of residential properties purchased on or after 26th May 1993 , Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition 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 of the owner of the property.

  • Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?

    Ans: Applications for repatriation of sale proceeds are considered, provided the sale takes place after three years from the date of final purchase or from the date of payment of final installment of the consideration amount, whichever is later

  • What is the procedure for seeking such repatriation?

    Ans: Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property.