NRI
ABOUT NRI
Non-Resident Indians (NRIs), under RBI guidelines, can purchase certain kinds of properties, though other forms may require special permissions. Thus every NRI, interested in buying property in India, must be aware of the provisions
related to purchase or ownership of immovable property in India under Foreign Exchange Management Act (FEMA). Persons of Indian Origin (PIOs) and always treated the same when it comes to NRI investment in India real estate.
The Reserve Bank of India (RBI) has given general permission to NRIs for any residential or commercial property in India. They do not need to seek any special permission from RBI or send any intimation in this regard. Now it’s easy for NRI Investment in India real estate.
DOCUMENTS REQUIRED
- NRI Guarantor’s passport and visa copies
- Income documents of guarantor
- Current overseas address verification proof, such as, driving license, bank statement, utility bill, latest insurance premium receipt showcasing overseas address
- Rapid increase in start-ups
- Medical Tourism
- Copy of incorporation of business
- Copy of income proof
- Middle East: Last 2 years audited/C.A certified P&L accounts
- US & Canada: Last 2 years CPA compiled/reviewed/audited P&L accounts
- Others: Last 2 years C.A. or equivalent certified/audited P&L accounts
- Copy of business profile and office address proof
- Copy of last six months’ bank statements in company’s name & individual’s name
- MOA & AOA of the company for private limited companies
- Partnership deed for partnership firm
- Copy of salary certificate mentioning the current salary earned, designation and date of joining or copy of current appointment letter
- Copy of previous appointment letters
- Last four months’ salary slips in case of variable salary, or last three months’ salary slip in case of fixed salary
- Six months bank statement clearly indicating credited salaries
Certain other details may also be asked for such as copy of PAN Card for the first applicant OR Form 60, Cheque/Draft in INR for fees with date in dd/mm/yyyy format, valid visa copies for all applicants and one
passport size latest photograph of each applicant (includes co-applicant) with signature across.
FREQUENTLY ASKED QUESTIONS
As defined by the Foreign Exchange Management Act of 1999 (FEMA), Non Resident Indian (NRI) is a citizen of India, who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating
an intention for an uncertain duration of stay abroad is a non-resident. Non-resident foreign citizens of Indian Origin are treated at par with Non Resident Indian (NRIs).
Since general permission is not available to NRI/PIO to acquire agricultural land/plantation property/farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India
Under the general permission, an NRI/PIO may purchase a residential property in India by funds remitted to India through normal banking channel or funds held in his NRE/FCNR (B)NRO account. No consideration shall be paid outside India.
Yes. An NRI/PIO can transfer their residential property in India by way of a gift to an Indian resident/NRI/PIO
Yes. Under general permission an NRI can sell his or her residential property in India to an Indian resident only.
Yes. Under general permission an NRI can sell his or her residential property in India to an Indian resident/NRI/PIO
Person of Indian Origin (PIO) (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
- at any time, held Indian passport, or
- who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the
bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their NRI spouses.
- Any person of full age and capacity:
- Who is a citizen of another country, but was a citizen of India at the time of, or at any time after, the commencement of the constitution, or
- Who is a citizen of another country, but was eligible to become a citizen of India at the time of the commencement of the constitution, or
- Who is a citizen of another country, but belongs to a territory that became part of India after the 15th Day of August, 1947.
- Who is a child of such a citizen, or
- A person, who is minor child of a person mentioned in clause (a)
Provided that no person, who is or had been a citizen of Pakistan, Bangladesh shall be eligible for registration as an Overseas Citizen of India.
Documents required for buying property
– Pan card (Permanent account number)
– OCI/PIO card (In case of OCI/PIO)
– Passport (In case of NRI)
– Passport size photographs
– Address proof
Under the general permission granted by RBI, the following categories can freely purchase immovable property in India:
a) Non-Resident Indian (NRI)- that is a citizen of India residing outside India
- Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who at any time, held Indian
passport or - who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land/plantation property/farm house in India. OCI can purchase immovable
property in India except agricultural land/plantation property/farmhouse.
Acquisition by purchase:
Yes, under general permission granted by the RBI an NRI/PIO can purchase a residential property in India
Acquisition by gift:
Yes, under general permission granted by the RBI an NRI/PIO can acquire a residential property by way of gift from a person in India or an NRI or a PIO.
Acquisition by inheritance:
Yes, an NRI/PIO/foreign national of Indian origin can acquire residential property by way of inheritance from a person who is a resident of India as per the Provisions of Section 6(5) of the Foreign
Exchange Management Act, 1999. An NRI/PIO/ foreign national of Indian origin can also acquire residential property by way of inheritance from a person who is a resident outside of India, with specific
approval of Reserve Bank, provided the bequeathor had acquired such property in accordance with the provisions of foreign exchange law in force at the time of acquisition or under FEMA regulations.