Spl. Rules for NRI / PIOs
- Permitted to purchase Residential and Commercial Property without RBI'S Permission
- No Limitation on the Number / size of the Property
- Purchase of Agricultural Land/ Plantation Property/ Farm Houses requires RBI Permission
- The Investments made by NRI in any of the Township, Housing, Built Up, infrastructure and Construction Development Projects does not attract conditions as to Minimum Area of Development, Capitalisation and Time frame
- PIO should not be a citizen of Pakistan , Bangladesh , Sri Lanka , Afghanistan , China , Iran , Nepal , Bhutan
- Citizen of above Countries not permitted to acquire Immovable Property (except by way of Lease for less than five years without permission of RBI)
- Payment can be made by NRI / PIO out of :
- Funds remitted to India through normal banking channel
- Funds held in NRE / FCNR / NRO account maintained in India
- No payment can be made either by traveler's cheque or by foreign currency notes and also no payment can be made outside India
- NRIs can avail home loan from Indian Institution approved by the NHB, and loan repayment can be done either through inward remittances, debit to a NRE/FCNR/NRO account, via rental income earned in India or by borrowing from close relatives residing in India
Transfer of Property
Transfer of Property by NRI/PIO can be done as follows:
Transferring residential/ commercial property |
NRI |
PIO |
|---|---|---|
| By sale | Can sell to person resident in India; NRI or PIO | Can sell only to a person resident in India |
| By gift | Can gift to person resident in India; NRI; or PIO. If property is being gifted to a foreign national of non-Indian origin, prior permission of RBI is required | Can gift to person resident in India; NRI; or PIO. If property is being gifted to a foreign national of non-Indian origin, prior permission of RBI is required |
Mortgage
- NRI / PIO can mortgage to:
- An authorized dealer / housing finance institution in India - without the approval of Reserve Bank.
- A party abroad - with prior approval of Reserve Bank.
- A foreign national of non-Indian origin can mortgage only with prior approval of Reserve Bank
- A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an authorized dealer in India
Repatriation of Sale Proceeds by NRI / PIO
- Property acquired as per rules prevalent
- In case the payment is made for acquisition out of foreign exchange sources through normal Banking Channels/NRE/FCNR the amount repatriated should not exceed the foreign currency equivalent paid
- Capital Gains may be credited to NRO Account from which NRI/PIO may repatriate the sale proceeds abroad up to US$ 1 million per financial year subject to tax compliance
- In case the payment is made for acquisition out of balances held in NRO Account out of rupee sources NRI/PIO may repatriate the sale proceeds abroad up to US$ 1 million per financial year subject to tax compliance.
- Remittance will be permitted on submission of certificate of CA in form prescribed by CBDT
- Repatriation in the above cases are also restricted to not more than two such residential properties.