NRI Corner

Who is a NRI?

A NRI is a person resident outside India who is either a citizen of India or a person of Indian origin. A NRI is an Indian Citizen who has migrated to another Country. For all official purpose the Government of India considers Indian National away from India for more than 182 days, in a year.

Who is a PIO?

A person of Indian origin means 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. Held an Indian Passport at any time, or
2. Who or whose father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

What are the types of Property can a NRI/PIO purchase in India?

There are no restrictions on the numbers of Residential/Commercial Properties (other than agricultural land/farm house/plantation) that can be purchased.

Does NRI/PIO require permission of The Reserve Bank to acquire residential/ commercial property in I

No. All Indian citizens are entitled to buy property in India, irrespective of their residential status.

How should the purchase of residential immovable property be paid for by NRI/ PIO under the general

The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR(B)/NRO accounts maintained with banks in India.

Is there are any Lock in period for such investment?

Currently there is no lock in period.

Can NRI/PIO sell their purchased property without the permission of Reserve Bank?

Yes. Reserve Bank of India has granted general permission for sale of such property to the following categories:-
1. To a NRI
2. To a PIO (If the seller is a PIO, then a prior approval is required from RBI)
3. To a person Resident of India

Can the sale proceeds of such property (if and when sold) be remitted/repatriated out of India?

Yes the sale proceeds can be remitted/repatriated out of India In the event property acquired out of foreign exchange source i.e. remittance through normal banking channels/ debit to NRE/ FCNR(B) accounts, the amounts to be repatriated should not exceed the amount paid for such property from such source. However, repatriation of sale proceeds purchased out of foreign exchange is restricted to not more that two residential properties, in a block of one year, with a facility of crediting the Capital gain to the NRO account. Again in the event the property was acquired out of Rupee source, an amount not exceeding USD one million, per financial year, subject to tax compliance, out of balance held in NRO account, may be remitted/repatriated.

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