NRI CORNER

Q) Who is an NRI?

A) An Indian Citizen who holds a valid Indian passport and stays abroad for employment/carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a Non-Resident Indian (NRI). Non-resident foreign citizens, of Indian Origin, are treated at par with Non-Resident Indians (NRI).

Q) Can an NRI/ Foreign national acquire immovable residential property in India?

A) Yes, an NRI/IPO can possess a residential property in India through a gift from an Indian, NRI/PIO. Even the RBI guidelines support it. There are other ways too, like a person can acquire a residential property by inheritance from a person, who is a resident as per the Provisions of Section 6(5) of the FEMA, 1999.

Q) Which property can be bought in India by NRI?

A) Though RBI has given general permission to the NRIs to purchase immovable properties in India, the permission does not grant power to acquire any and every property in India. The NRIs are allowed to purchase only residential or commercial property. So NRIs cannot purchase any agricultural land or plantation property.

Q) How can you repatriate the sale consideration to the country in which the NRI is residing?

A) Repatriation of sale proceeds can happen after three years from the date of finalization of purchase deed or after the last and final installment of consideration is paid, WHICHEVER IS LATER.

Q) Can an NRI or PIO transfer his residential property by way of sale?

A) Yes, as per RBI guidelines, an NRI/PIO can acquire a residential property in India by a way of gift from an Indian, NRI or simply purchase it. Thus, it can easily be transferred.

Q) Can a residential property acquired by an NRI be given out on rent for immediate use?

A) Yes, an NRI can give his property out on rent. The money can be repatriated by him after deducting TDS at 30%.

Q) Are there any formalities an NRI has be finish before he can buy a property?

A) A declaration in form IPI 7 has to be filed with the Reserve Bank within 90 days finalization of purchase deed or after the last and final installment of consideration is paid, WHICHEVER IS LATER.