Property for NRI
Property remains the best option for NRIs looking to invest in India as the Indian government continues to push through reforms (in the Land Acquisition Act, the Real Estate Regulatory Bill, relaxation of FDI rules, and so on).
Frequently Asked Questions (FAQs)
Q.WHO IS A NON-RESIDENT INDIAN(NRI)?
A. A non-resident is an Indian citizen who stays abroad for employment/business or
vocation outside India or stays abroad under circumstances indicating an intention to stay abroad for an
indefinite period of time. (Persons posted in United Nations organizations and officials deputed abroad
by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as
non-residents). Non-resident foreign citizens of Indian origin receive the same treatment as
non-resident Indian citizens (NRIs).
Q.WHO IS A PIO?
A. A person of Indian origin is defined as a person (who is not a citizen of
Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan) who:• held an Indian
passport at any time, or • whose father or paternal grandfather was a citizen of India under the Indian
Constitution or the Citizenship Act, 1955.
Q.WHAT ARE THE VARIOUS FACILITIES AVAILABLE TO NRIs/OCBS?
A. The following facilities are available to NRIs/OCBs: 1. Keeping bank accounts in
India 2. Investments in securities/shares of Indian firms/companies, as well as deposits with them 3.
Investments in real estate in India.
Q.WHO CAN PURCHASE IMMOVABLE PROPERTY IN INDIA?
A. 1 The following categories can freely purchase immovable property in India under
the general permission available: I Non-Resident Indian (NRI) – a citizen of India who resides outside
of India. ii) Person of Indian Origin (PIO) – an individual (not a citizen of Pakistan, Bangladesh, Sri
Lanka, Afghanistan, China, Iran, Nepal, or Bhutan) who 1. held an Indian passport at any time, or 2.
whose father or grandfather was a citizen of India under the Indian Constitution or the Citizenship Act,
1955. (57 of 1955). However, the general permission only applies to the purchase of residential and
commercial property.
Q.CAN NRIs SELL THE PROPERTIES THEY HOLD IN INDIA WITHOUT RESERVE BANK PERMISSION?
A. YES
Q.CAN NRIs ACQUIRE OR DISPOSE RESIDENTIAL PROPERTY BY WAY OF GIFT?
A. Yes, under the Reserve Bank’s general permission, NRIs can acquire property other
than agricultural land/farm house/plantation property provided the purchase consideration is met either
through inward remittances in foreign exchange through normal banking channels or through funds from the
purchaser’s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the
Reserve Bank’s Central Office in form IPI 7 within 90 days.
Q.WHO IS A PIO?
A. A person of Indian origin is defined as someone who:• held an Indian passport at
any time, or • whose father or paternal grandfather was a citizen of India under the Indian Constitution
or the Citizenship Act of 1955.
Q. WHAT IS POWER OF ATTORNEY?
A. A power of attorney (POA) or letter of attorney is a written directive to
represent or carry out an action on behalf of another in a private, business-related, or other legal
matter, sometimes against that person’s wishes. The principal, grantor, or donor is the person giving
another person permission to do something (of the power). An instrument of transfer for any right,
title, or interest in real estate is not a power of attorney. A power of attorney, also known as a
letter of attorney, is a legal document that gives another person—known as the agent or
attorney-in-fact—typically a legally capable relative or close friend who is at least 18 years
old—authority to make any number of financial, legal, and health care decisions on their behalf. Another
name for a power of attorney is a POA. Generally, one chooses a POA as a provision if he or she becomes
incapacitated.
