FAQs for NRI

Q1. Who is an NRI (Non Resident Indian)?
Anyone who is an Indian citizen by birth but for employment or other vocational reasons, stays outside India for an indefinite period time can be all as an NRI.

Q2. Who all can be called a Person of Indian Origin?
Person-of-Indian Origin can be people who are citizens of a foreign country, but who were born in India or whose father and forefathers were of Indian origin.

Q3. What are Overseas Corporate Bodies?
These are bodies largely owned by people who are Indian citizen or of Indian origin but reside outside India. They include overseas companies, corporate bodies and partnership firms owned mostly by the Indian citizens or people of Indian origin. In these bodies, three-fourth of the interest are owned by Indian citizens or people of Indian origin.

Q4. Is it possible for non resident Indians and Overseas Corporate Bodies to invest in India?
Yes, it is absolutely possible for them however, through the RBI and Government way which includes, Foreign Investment Promotion Board (FIPB). These Individuals and bodies can invest up-to 100% equity in Indian real estate and civil aviation sectors. Their investment in India is fully reparable except in case of real estate which has 3 years lock-in period on original investment along with 16% cap on dividend repatriation.
How many commercial properties, an NRI can acquire in India legally?
Any number of commercial properties can be acquired by an NRI, as long as he can afford it legally.

Q5. Are foreign nationals of Indian origin allowed to purchase immovable property in India?
Ans. Yes, foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India.

Q6. What should be the method of payment for purchasing residential immovable property in India by foreign nationals of Indian origin under the general permission?
Ans. 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 banks in India.

Q7. Are there any formalities to be completed by foreign nationals of Indian origin for purchasing residential immovable property in India?
Ans. They are required to file a declaration in Form IPI 7 with the Central Office of the Reserve Bank of India at Mumbai within a period of 90 days from the date of purchase of immovable 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.

Q8. Do non-resident Indian nationals require permission of the Reserve Bank of India to acquire residential/commercial property in India?
Ans. No permission is required by non-resident Indian nationals to acquire immovable property in India.

Q9. Can such property be sold without the permission of the Reserve Bank of India?
 Ans. Yes. However, such property can be sold to other foreign nationals of Indian origin provided funds towards the purchase consideration are either remitted to India or paid out of balances in NRE/FCNR account.

Q10. Can such property be sold without the permission of the Reserve Bank of India?
 Ans. Yes. The Reserve Bank of India has granted general permission for sale of such property. 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 balances in NRE/FCNR accounts.

Q11. Can sale proceeds of such property if and when sold be remitted out of India?
 Ans. In respect of residential properties purchased on or after May 26, 1993, the Reserve bank of India considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to May 26, 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property. The Reserve Bank of India also considers repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for acquisition of commercial properties.

Q12. What are the conditions required to be fulfilled for repatriation of sale proceeds?
 Ans. Applications for repatriation of sale proceeds are considered afterthe sale takes place after three years from the date of final purchase deed or from the date of payment of final of consideration amount, whichever is later.

Q13. What is the procedure for seeking such repatriation?
 Ans. Application for necessary permission for remittance of sale proceeds should be made in Form IPI 8 to the Central Office of the Reserve Bank of India at Mumbai within 90 days of the sale of the property.

Q14. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gifting it?
 Ans. Yes. The Reserve Bank of India has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, provided gift tax has been paid.

Q15. Can foreign citizens of Indian origin acquire commercial properties in India?
 Ans. Yes. Under the general permission granted by the Reserve Bank of India properties other than agricultural land/farm house/plantation property 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 from the purchaser\'s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of the Reserve Bank of India in Form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Q16. Can sale proceeds of such property be remitted out of India?
 Ans. Yes, Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after May 26, 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of the Reserve Bank of India within 90 days of the sale of property in Form IPI 8.

Q17. Can the properties (residential/commercial) be given on rent if not required for immediate use?
 Ans. Yes. The Reserve Bank of India has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.

Q18. In what way the Non-resident Indian can finance the flat?
 Ans. The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original non-resident account or from Non-resident (External) Accounts. Non-resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to non-resident Indians even if they are abroad, provided a family member of his or her in India is made a co-borrower and a power of attorney is given to his representative in India.

Q19. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
 Ans The Reserve Bank of India has granted general permission to certain financial institutions providing housing finance. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions.

Q20. Can a dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?
 Ans. Dealers have been granted permission to grant loans to non resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance though banking channels or out of funds held in the investors’ NRE/FCNR/NRO account

Q21. Can Indian companies grant loans to their NRI staff?
 Ans. The Reserve Bank of India permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions. Q. Can an dealer grant housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-obligate/guarantor, or where the land is owned jointly by such NRI borrower with his resident close relative' Ans. Yes. However, in such cases the payment of margin money and repayment of the loan installments should be made by the NRI.

Q22. Non-resident Indians are staying abroad can the property be purchased through the agent or through the Power of Attorney?
 Ans. The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favor as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.

Q23. Can such residential property be given on rent if not required for immediate residential use?
 Ans. Yes

Q24. Can the rental income from such property be remitted outside India?
 Ans. No. Such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property

 
     
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License no.250 of 2007 dated 02.11.2007 and License no.50 of 2012 dated 17.05.2012 granted by HARYANA GOVERNMENT TOWN AND COUNTRY PLANNING DEPARTMENT. License Holders : M/s Chintels India Limited and others. Building Plan Approval No.D.T.C.P-Memo No. ZP-353/SD/(BS)/2013/47120 dated 26/7/2013. Residential Group Housing development in 9.75 acres.Total Numbers of 435 units inclusive of EWS. Provision of nursery school, community centre, shopping area within the project. The details of the approval may be checked at our office.