NRI

NRI

RBI DIRECTIVES

Purchase of immovable property in India by Non-Resident Individuals

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the regulations made or directions issued thereunder may be referred to. The relevant principal regulations are the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 issued vide Notification No. FEMA 21/2000-RB dated May 3, 2000. The directions issued are consolidated in Part II of the Master Direction No 12 on Acquisition and Transfer of Immovable Property under Foreign Exchange Management Act, 1999. Amendments, if any, to the principal regulations are appended.

1. What are the accepted modes of payment for property acquired in India?

Payment for immovable property has to be received in India and is subject to payment of all taxes and other duties/ levies in India. The payment should be received in the form of funds remitted to India through banking channels or through funds held in NRE/ FCNR(B)/ NRO accounts of the NRIs/ PIOs. Payments should not be made through travellers’ cheque and foreign currency notes. NRIs/ PIOs can avail of housing loan in Rupees from an Authorized Dealer or housing finance Institution in India subject to conditions.

2. Can Foreign Embassies/ Diplomats/ Consulate Generals acquire property in India?

Foreign Embassy/ Diplomat/ Consulate General, can purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) in India provided –

  • Clearance from the Government of India, Ministry of External Affairs is obtained for such purchase/sale, and
  • The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through the normal banking channels.
3. How can Non-resident Indians (NRIs)i/ Persons of Indian Origin (PIOs)ii acquire immovable property in India?
Particulars NRI PIO
Purchase (other than agricultural land/ farmhouse/ plantation etc) from Resident/ NRI Resident/ NRI
Acquire as gift (other than agricultural land/ farmhouse/ plantation etc) from Resident / NRI/ PIO Resident/ NRI/ PIO
Acquire (any IP) as inheritance from (a) Any person who has acquired it under laws in force
(b) under section 6(5)iii of FEMA
Sell (other than agricultural land/ farmhouse/ plantation etc) to Resident / NRI/ PIO Resident
Sell (agricultural land) to Resident Resident who is a citizen of India
Gift (other than agricultural land) to Resident / NRI/ PIO Resident / NRI/ PIO
Gift (agricultural land) to Resident Resident who is a citizen of India
Gift residential/ commercial property to Resident / NRI/ PIO Resident / NRI/ PIO
4. Can foreign nationals acquire property in India?
  • Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau or Hong Kong, irrespective of their residential status, cannot, without prior permission of the Reserve Bank, acquire or transfer immovable property in India, other than on lease, not exceeding five years.

  • Foreign nationals of non-Indian origin resident in India (except 10 countries listed at (a) above) can acquire immovable property in India.
  • Foreign nationals of non-Indian origin resident outside India can acquire/ transfer immovable property in India, on lease not exceeding five years and can acquire immovable property in India by way of inheritance from a resident. All other acquisitions/ transfers will require the prior permission of RBI

5. Can a non-resident repatriate the sale proceeds of immovable property in India?

A person who has acquired the property U/s 6(5) of FEMA or his successor cannot repatriate the sale proceeds of such property without RBI approval. However, repatriation up to USD I million per financial year is allowed, along with other assets under (Foreign Exchange Management (Remittance of Assets) Regulations, 2016) for NRIs/ PIOs and a foreign citizen (except Nepal/ Bhutan/ PIO) who has (a) inherited from a person referred to in section 6(5) of FEMA, or (b) retired from employment in India or(c) is a non-resident widow/ widower and has inherited assets from her/ his deceased spouse who was an Indian national resident in India. NRIs/ PIOs can remit the sale proceeds of immovable property (other than agricultural land/ farm house/ plantation property) in India subject to the following conditions:

  • The immovable property was acquired in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations 2000;
  • the amount to be repatriated does not exceed the amount paid for acquisition of the immovable property received through normal banking channels or out of funds held in FCNR(B) account or NRE account;
  • in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
6. What is the meaning of transfer?

As per section 2(ze) of FEMA transfer means, sale, purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien.

Amendments to the Principal Regulations

1. Notification No. FEMA 65/2002-RB dated June 29, 2002
2. Notification No. FEMA 93/2003-RB dated June 9, 2003
3. Notification No. FEMA 146/2006-RB dated February 10, 2006
4. Notification No. FEMA 186/2009-RB dated February 3, 2009
5. Notification No. FEMA 200/2009-RB dated October 5, 2009
6. Notification No. FEMA 321/2014-RB dated September 26, 2014
7. Notification No. FEMA 335/2015-RB dated February 4, 2015

  • NRI refers to a person resident outside India who is a citizen of India
  • PIO refers to a person resident outside India who is not a citizen of Pakistan/ Bangladesh/ Iran/ Nepal/ Bhutan/ China/ Afghanistan/ Sri Lanka and (a) At any time held an Indian Passport or (b) Who or either father or mother or grandfather or grandmother was a citizen of India (either through the Constitution or Citizenship Act)

  • Section 6(5) of FEMA states that a person resident outside India may hold, own, transfer or invest in any immovable property situated in India if such property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India.

Ref:www.rbi.org.in

HEAD QUARTERS

BRAMHACORP LTD.
Residency Club, 3, Queen’s Garden Road,
Pune, India. 411 001
Phone: +91 20 41423300
Email: presales@bramhacorp.in

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Disclaimer

We are currently in the process of revising our website in consonance with the REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 and the RULES made thereunder (“RERA”), which have been brought into effect from 1st May, 2017. Until our website is duly revised and updated, none of the images, material, stock photography, projections, details, descriptions and other information that are currently available and/or displayed on the website, should be deemed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer, invitation to acquire, including within the purview of the RERA.
You are therefore requested to directly verify all details and aspects of any proposed booking / acquisition of apartments / premises, directly with our authorized representatives. Please do not rely completely on the information contained on this website, until our revision and process of update is complete. Please note, that we will not be accepting any bookings or allotments based on the images, material, stock photography, projections, details, descriptions that are currently available and/or displayed on the website.
Brand impressions, floor plans, layout plans, specifications, images, names, drawings, perspectives, models, graphics, logos, icons and other details herein are only indicative and the Promoter / Owner reserves the right to change all or any of them. Amenities and features of the project listed on the website are subject to change / deletion at the discretion of the Promoter and / or subject to changes on the directions issued by the Competent Authorities. The offerings outlined in those advertisements in whatever form may not be a part of the initial phase / present phase of the project and may be delivered in later phases or on completion of the Project.
This web site material does not constitute an offer and/or contract of any type between the Promoter / Owner and the Recipient, any Purchaser of the Unit / Apartment of the Project shall be governed solely by the terms and conditions of the Agreement for Sale executed between the Purchaser and the Developer / Owner / Promoter and no details / information mentioned on this website material shall in any way govern or cover or be considered as the terms and conditions of such sale.
The content provided on this Site is intended for informational purposes only and is not intended to constitute an offer or solicitation. It is Artistic impression of the proposed project / layout shown on this site and is indicative of how the unit can be used. No furniture, landscape amenities or accessories shown in the visuals are provided with the apartment.
All floor plans, layout plans, specifications, images and other details herein are only indicative and the Promoter / owner reserves the right to change any or all of these in the interest of the development / project. Marginal revisions may be necessary during construction of entire Project in separate Phases. The common areas and amenities that have been shown in any advertisement, audio visuals and/or any type of communication in any form whatsoever is/are for the entire Project and not specific for any particular building or phase of the Project and that the common areas and amenities will not be available on completion of the first phase of the Project or later phases. The common areas and amenities shall be available for the entire project and will be developed in a phase-wise manner, over a period of time.
All apartments about which information is provided herein are subject to prior sale. Prospective purchasers must visit BRAMHACORP LIMITED Sales Office to purchase an Apartment. Despite the efforts of BRAMHACORP LIMITED to provide accurate information on this Site, it is not possible to ensure that all information is correct or up to date.

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