If a foreign national is a person resident in India as per the provisions of Section 2 (v) (i)B of the FEMA, 1999, does he require approval of Reserve Bank to purchase any immovable property in India?

If a foreign national is a person resident in India as per the provisions of Section 2 (v) (i)B of the FEMA, 1999, does he require approval of Reserve Bank to purchase any immovable property in India?
If a foreign national is a person resident in India as per the provisions of Section 2 (v) (i)B of the FEMA, 1999, does he require approval of Reserve Bank to purchase any immovable property in India?

A foreign national resident in India does not require approval from Reserve Bank from FEMA angle, but approvals if any required in terms of regulations prescribed by other authorities such as the concerned State Government etc. will have to be obtained by him / her.

However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan requires specific prior approval of Reserve Bank.

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.

In which accounts can the sale proceeds of such immovable property be credited?

 In which accounts can the sale proceeds of such immovable property be credited?
In which accounts can the sale proceeds of such immovable property be credited?

The sale proceeds may be credited to NRO account.

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.

Can a person who had bought immovable property when he was a resident, continue to hold such property even after becoming an NRI’PIO?

Can a person who had bought immovable property when he was a resident, continue to hold such property even after becoming an NRI'PIO?
Can a person who had bought immovable property when he was a resident, continue to hold such property even after becoming an NRI’PIO?

Yes, he can continue to hold the residential/commercial property / agricultural land/ plantation property / farm house in India without the approval of the Reserve Bank.

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.

Can NRI or PIO rent out the residential commercial property purchased out of foreign exchange funds?

Can NRI or PIO rent out the residential commercial property purchased out of foreign exchange funds?
Can NRI or PIO rent out the residential commercial property purchased out of foreign exchange funds?

Yes, NRI/PIO can rent out the property without the approval of the Reserve Bank. Rent received can be credited to NRO, NRE account or remitted abroad.

Powers have been delegated to the Authorised Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRls/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. [cf. AP. (DIR Series) Circular No. 45 dated May 14, 2002].

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.

If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?

If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?
If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?

Yes, general permission is available to the NRls/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India.

NRls/PIO may repatriate an amount not exceeding USD one million, per financial year, on production of documentary evidence in support of acquisition / inheritance of assets, 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. 10/2002 dated October 9,2002. [cf. A P. (DIR Series) Circular No.56 dated November 26, 2002].

In case of a foreign national, sale proceeds can also be repatriated even if the property is inherited from a person resident outside India. But this is allowed only with prior approval of Reserve Bank.

The foreign national has to approach Reserve Bank with documentary evidence in support of inheritance of the immovable property and the undertaking and the CA Certificate as mentioned above. The general permission for repatriation of sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran and he has to seek specific approval of Reserve Bank.

As FEMA specifically permits transactions only in Indian Rupees with citizens of Nepal and Bhutan, the question of repatriation of the sale proceeds in foreign exchange to Nepal and Bhutan would not arise.

Can NRI And PIO repatriate the sale proceeds of immovable property?

 Can NRI And PIO repatriate the sale proceeds of immovable property?
Can NRI And PIO repatriate the sale proceeds of immovable property?

NRI/ PIO may repatriate the sale proceeds of immovable property in India

(a) If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels I by debit to ‘NRE I FCNR (B) account The amount to be repatriated should not exceed the amount paid for the property:

1. in foreign exchange received through normal banking channel or

2. by debit to NRE account(foreign currency equivalent, as on the date of payment) or debit to FCNR (B) account.

Repatriation of sale proceeds of residential property purchased by NRI/ PIO out of foreign exchange is restricted to not more than two such properties. Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount up to USD one million, per financial year, as discussed below.

(b) If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance.

Can NRI and PIO avail of housing loan in rupees from his employer in India?

 Can NRI and PIO avail of housing loan in rupees from his employer in India?
Can NRI and PIO avail of housing loan in rupees from his employer in India?

Yes, subject to certain terms and conditions (Please refer to Regulation 8A of Notification. No FEMA 4/2000-RB dated May 3, 2000 and AP. (DIR Series) Circular No.27 dated October 10, 2003).

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.

How can an NRI or PIO make payment for purchase of residential or commercial property in India?

How can an NRI or PIO make payment for purchase of residential or commercial property in India?
How can an NRI or PIO make payment for purchase of residential or commercial property in India?

Payment can be made by NRI/ PIO out of –

(a) funds remitted to India through normal banking channel or

(b) funds held in NRE/ FCNR (B)/ NRO account maintained in India No payment can be made either by traveller’s cheque or by foreign currency notes. No payment can be made outside India.

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.

Can residential and commercial property be mortgaged?

Can residential and commercial property be mortgaged?
Can residential and commercial property be mortgaged?

i) NRI/ PIO can mortgage to: (a) an authorised dealer/ housing finance institution in India- without the approval of Reserve Bank. (b) a party abroad – with prior approval of Reserve Bank.

ii) a foreign national of non-Indian origin can mortgage only with prior approval of Reserve Bank

iii) a foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an authorized dealer in India.

Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property.

A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to-

a) A person resident outside India who is a citizen of India or

b) A person of Indian origin resident outside India or c) A person resident in India.