Rahul Bansal (Finalist) (35929 Points)
07 January 2010Acquisition and Transfer
of
Immovable Property
in India
by a
person resident
outside
India
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Acquiring immovable property in India by persons resident outside India is regulated in terms of Section 6(3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in Notification issued by RBI as amended from time to time. The persons resident outside India are categorized as Non- Resident Indians (NRIs) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin. A person resident in India who is not a citizen of India is also covered by the relevant Notifications.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Statutorily, under the provisions of Section 6(5) of FEMA 1999, a person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
The regulations permit a NRI or a PIO to acquire immovable property in India other than agricultural land or, plantation property or farm house. Further, foreign companies who have been permitted to open an office in India are also allowed to acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. This stipulation is not available to entities which are permitted to open liaison offices in India.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
The restrictions on acquiring immovable property in India by a person resident outside India would not apply where the immovable property is proposed to be acquired by way of a lease for a period not exceeding 5 years or where a person is deemed to be resident in India. In order to be deemed to be a person resident in India, from FEMA angle, the person would need to comply with the criterion for residency as defined in Section 2(v) of FEMA 1999. However, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer immovable property in India, (other than on lease, not exceeding five years) without prior permission of the Reserve Bank.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
NRIs/PIO are allowed to repatriate an amount up to USD one million, per financial year (April-March), out of the balances held in the NRO account subject to tax compliance. This amount includes sale proceeds of assets acquired by way of inheritance or settlement.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
I Acquisition of Immovable Property in India
Q.1 Who can purchase immovable property in India?
A.1 Under the general permission available, the following categories can freely purchase immovable property in India:
i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India
ii) Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who 1. at any time, held Indian passport, or
2. who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Q.2. Whether NRI/PIO can acquire agricultural land/ plantation property / farm house in India?
A.2. No. Since general permission is not available to NRI/PIO to acquire agricultural land/ plantation property / farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.
Max Payne
(employed)
(2574 Points)
Replied 07 January 2010
Rahul, why dont you upload this as a file attachment? It would be useful..
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Q.3. Do any documents need to be filed with Reserve Bank of India after purchase?
A.3. No. An NRI / PIO who has purchased residential / commercial property under general permission, is not required to file any documents with the Reserve Bank.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Q.4. How many residential / commercial properties can NRI / PIO purchase under the general permission?
A.4. There are no restrictions on the number of residential / commercial properties that can be purchased.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
| Originally posted by : G.K.. | ||
 |
Rahul, why dont you upload this as a file attachment? It would be useful.. |  |
DEAR FRIEND,
IF ANYONE NEED THIS IN FILE FORMAT, I WILL DIRECTLY SEND HIM TO THEIR EMAIL ID....
THET CAN DIRECTLCY EMAIL ME AT:
rahul28031985 @ gmail.com
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Q.5. Can a foreign national of non-Indian origin be a second holder to immovable property purchased by NRI / PIO?
A.5. No.
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Q.6. Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?
A.6. No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. In such cases, there is no requirement of taking any permission of or reporting to Reserve Bank
Rahul Bansal
(Finalist)
(35929 Points)
Replied 07 January 2010
Q.7 Can a foreign national who is a person resident in India purchase immovable property in India?
A.7. Yes, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India.
CAclubindia
