NRI Property Issues

AppId is over the quota
AppId is over the quota

Purchase or buying of immovable property

The general permission states that an NRI and a PIO can purchase property in India which is immovable. But they hence cannot buy commercial or residential land. If a person has bought a farm house when he was a resident Indian then he can continue to keep the property without any permission. Properties can be bought without restrictions.

Payment cannot be done through the traveler's cheque or by foreign currency but can be done through NRE/FCNR and through NRO account.

Sale of immovable property

NRIs can sell property in India to

· A person resident in India; or

· An NRI; or

· A PIO

PIOs can sell property in India to

· A person resident in India; or

· An NRI; or

· A PIO or a NRI can sell his land to a resident Indian or a citizen of India. The land can be whatever like agricultural land or residential land etc.

Inheritance of immovable property:

Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan's citizens should seek of Reserve Bank's prior approval for inheriting immovable property in India. NRIs and PIOs can hold immovable property and inherit in India from a person who is resident in India. General permission is available to the NRIs/PIOs to repatriate the sale proceeds of the immovable property inherited from a person resident in India subject to the following conditions:

(i) USD one million is the limit per financial year. In support of acquisition / inheritance of assets and an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.4/2009 dated June 29, 2009 is subject for production of documentary evidence.

(ii) In deed of settlement made by either of his parents or a close relative (as defined in section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler the original deed of settlement and a tax clearance / No Objection Certificate from the Income-Tax Authority should be produced for the remittance

(iii) Remittance of all such installments shall be made through the same Authorized Dealer Where the remittance as above is made in more than one installment.

Acquiring immovable property by Gift, Settlement etc.

NRIs and PIOs can freely acquire immovable property by way of gift either from

· A person resident in India; or

· AN NRI; or

· A PIO

NRI / PIO may gift residential / commercial property to

· A person resident in India or

· An NRI or

· A PIO

Lease of Immovable Property

The rent can be remitted abroad or credited to NRE / NRO account.

NRI/PIO can rent out the property without the approval of the Reserve Bank. Powers have been delegated to the Authorized Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. NRI/PIO who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.

Mortgage of Immovable Property

NRI / PIO can mortgage a residential / commercial property to

· Without the approval of Reserve Bank an Authorized Dealer / Housing Finance Institutions in India

· With the prior approval of the Reserve Bank a bank abroad.