NRI Corner
NRI Corner Why Invest in India
India is set to remain as one of the world’s fastest growing economies. There’s never been a better time to
invest in real estate in India. Let us help you throughout the pre-and-post purchase processes.
Non - Resident Indian / Persons of Indian Origin
As per Section 2(v) of the Foreign Exchange Management Act (FEMA), 1999, a "Person resident in India" is defined as follows:
1. An individual who has resided in India for more than one hundred and eighty-two days during the preceding financial year, excluding those:
a. Who left India or are residing outside India for employmentpurposes.
b. Engaged in business or vocation outside India.
c. Staying abroad for various purposes indicating an uncertain period of stay.
2 An individual who has arrived in or is staying in India for reasons other than employment, business, or any other purpose with
an uncertain duration.
3. Any person or body corporate registered or incorporated in India.
4. An office, branch, or agency in India owned or controlled by a person residing outside India.
5. An office, branch, or agency outside India owned or controlled by a person residing in India. Explanation: Section 2(u) defines "person" broadly to include individuals, Hindu undivided families, companies, firms, associations of persons, or any other artificial juridical person along with their offices, branches, or agencies.
The Reserve Bank of India, through various FEMA Notifications under FEMA, 1999, defines a Person of Indian Origin as follows:
1.For opening non-resident bank accounts:A citizen of any country except Bangladesh or Pakistan who:
a. Held an Indian passport at any time.
b. Has a parent or grandparent who was an Indian citizen as per the Constitution of India or the Citizenship Act, 1955.
c. Is the spouse of an Indian citizen or a person meeting the
criteria mentioned above.
2.For investing in shares/debentures, etc. in India:
a. Same criteria as above.
For acquiring immovable property in India:
b. Same criteria as above, with additional exclusions of certain countries.
3.For establishing a branch or office in India:
a. Same criteria as above.
4.For acquiring a PIO Card:
a. Same criteria as above, with further details on ancestry and residency.
Acquistion and transfer of immovable property in
India by a person resident outside India
Yes, both NRIs and PIOs can buy residential/commercial property in
India without seeking permission from the Reserve Bank.
No forms or returns are necessary after purchasing property under
general permission.
There are no restrictions on the number of properties they can buy.
No, foreign nationals cannot be added as second holders
No, they cannot buy property, but they can lease residential
accommodation for up to five years with RBI permission.
No, they cannot acquire such properties in India.
Yes, they can receive residential/commercial property as gifts under
general permission.
Yes, they can gift property to residents in India, but not to NRIs/PIOs.
Yes, they can hold inherited property.
With RBI approval and compliance with foreign exchange laws, they
can hold such property.
Yes, they can sell to residents/NRIs/PIOs.
They can only sell to residents.
No, they need RBI approval for such transfers
They need RBI approval for any sale.
Yes, they can mortgage property with authorized dealers/housing
finance institutions.
No, they need RBI approval for such transactions.
They can pay from funds remitted to India or held in NRE/FCNR (B)/
NRO accounts, with the payment made outside India.
Yes, provided the original payment was made through remittance or
NRE/FCNR (B) account.
Under certain conditions, they can avail loans
Yes, subject to terms and conditions.
Yes, subject to certain conditions and limits.
No, there's no lock-in period.
Yes, they can repatriate proceeds from up to two residential
properties.
Sale proceeds from gifted property should be credited to NRE
accounts.
Yes, with supporting documents and tax clearance certificates.
These are some common questions regarding NRIs and PIOs and
their transactions involving property in India.