With the help of below mentioned Questionnaire, we aim to help NRIs interested in knowing the nuances of real estate sale, purchase and rent in India. For any other query you can directly call
us at : 0120-4271227 Or write to us at : Unit No: 509, 5th Floor, Chokhani Square, P-4, Sector-18, Noida (U.P.)
1- According to Indian Foreign Exchange Regulation Act, who all can be called a NRI?
According to IFERA, NRI's are:
a- Indian Citizens staying abroad for work or other purposes.
b- GOI employees deputed in a foreign county for work.
c- Indian citizens working for international agencies etc.
2- Who are foreign citizens of Indian origin according to Indian Laws?
Foreign citizen of Indian origin are people who have had an Indian passport at anytime in their lives and people whose ancestors were Indian citizens. However, this does not apply to citizens of neighboring countries like- Nepal, Bhutan, China, Pakistan, Afghanistan or Figi etc.
3- Are non resident Indians and person of Indian origin allowed to rent-out their residential or commercial properties in India, which are bought out of foreign exchange or Rupee funds?
Yes they are allowed to do so as per the GOI norms and rent received from those as current income can be credited to NRO/NRE account or can be remitted abroad.
4- Can a PIO or a NRI continue to hold and transfer immovable properties in India like- residential / commercial property / agricultural land / plantation property / farm house etc, all of which he had received while he was a person resident in India, and in which account the sale proceeds of these properties will be credited?
Yes he can hold and transfer such properties in India and this privilege has been granted to him by Section 6 (5) of the Foreign Exchange Management Act, 1999. According to this provision a NRI who had acquired immovable property in India while he was a person resident in India may continue to hold such property and enjoy the rights of transferring or selling them. The sale proceeds of such properties may be credited to the NRO account.
5- Can the proceeds of the sale of a property in India by a NRI or PIO credited to NRO account of the NRI/PIO, be remitted abroad?
Yes, it can be remitted in abroad but only if the property was help by the person for at least 10 years before it was sold off.
6- What can happen if an immovable property was held for less than ten years by the NRI or PIO before it was sold-off?
In that case (if the property has been bought out of rupee funds) the remittance can be made but only if the sale proceeds were held for the balance period in NRO account (Savings / Term Deposit) or in any other eligible investment, provided such investment is traced to the sale proceeds of the immovable property.
7- Under erstwhile FERA, foreign nationals of non-Indian origin resident in India or outside India had with the specific approval of Reserve Bank acquired residential property in India. While they can continue to hold the same under the provisions of Section 6(5) of FEMA, 1999 can they transfer such property?
Yes, only with the prior approval of Reserve Bank.
8- Can a person who is the resident of India governed by the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000?
Yes, a person who is the resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan is governed by the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000.