Published & Updated as on - 2010-05-25
Non-resident
Indians (NRIs) are permitted to buy and sell property in India. The acquisition
and transfer of immovable property by NRIs should be in accordance with the
Foreign Exchange Management Act (FEMA).
The property should be purchased through a registered
conveyance deed. In case the property is purchased on the basis of a Power of
Attorney, an agreement to sell and the Power of Attorney should be executed by
the seller in favour of the buyer.
However, they are
not formally registered with the office of the registrar. As such, no stamp
duty is to be paid for the purchase.
The Reserve Bank
of India (RBI) has granted permission to foreign citizens of Indian origin,
whether resident in India or abroad, to purchase property in India for
residential or commercial purposes.
The purchase
consideration should be met either out of inward remittances in foreign
exchange through normal banking channels or out of funds from NRE/FCNR accounts
maintained with a bank in India.
Foreign citizens of
Indian origin, purchasing residential property in India under the general
permission are required to file a declaration with the central office of the
RBI at Mumbai within a period of 90 days from the date of purchase of the
property or final payment of purchase consideration along with a certified copy
of the document evidencing the transaction and bank certificate regarding the
consideration paid.
The RBI has granted general
permission for such a sale. However, where the property is purchased by another
foreign citizen of Indian origin, funds towards the purchase consideration
should either be remitted to India or paid out of a NRE/FCNR account.
The
RBI has granted general permission to let out a property in India. The rental
income is eligible for repatriation.
The RBI has also
granted general permission to certain financial institutions providing housing
finance and authorised dealers to grant housing loans to NRIs for acquisition
of a house for self-occupation subject to certain conditions.
The
purpose of the loan, margin money and the quantum of loan will be at par with
those applicable to housing loans for residents.
Repayment
of the loan should be made within a period not exceeding 15 years out of inward
remittances or out of funds held in a NRE, FCNR or NRO account.
In
addition to these, properties other than agricultural land, farm houses, an
plantations can be acquired by foreign citizens of Indian origin provided the
purchase consideration is met either out of inward remittances in foreign
exchange through normal banking channels or out of funds in a NRE or FCNR
account maintained with a bank in India.
A
declaration is to be submitted to the central office of the RBI within a period
of 90 days from the date of purchase of the property or final payment of
purchase consideration. They can also dispose off such properties.
The
RBI has also granted general permission to foreign citizens of Indian origin to
acquire or dispose off properties - up to two houses - as gift from or to a
relative who may be an Indian citizen or a person of Indian origin whether
resident in India or not, subject to compliance with applicable tax laws.
The
RBI also permits non-resident persons (foreign citizens) of Indian origin to
transfer as gift property held by them in India to relatives and charitable
organisations subject to the condition that the provisions of any other law,
including the Foreign Contribution (Regulation) Act 1976 are complied with.
Source : Ashish Gupta, TNN, Source 2 panindiaproperties.blogspot.com
|