NRI Forms

RBI Guidelines

Under the foreign exchange regulations for what kind of property is a general permission available for purchase immovable property in India for NRI/PIO? General Permission is available to purchase only a residential/commercial property in India to a person resident outside India. A person resident outside India cannot acquire by way of purchase agricultural land/plantation property/farm house in India.

Is NRI/PIO who has purchased property required to file any documents with Reserve Bank of India? NRI/PIO who has purchased is not required to file any documents with the Reserve Bank.

Is there any restriction on number of properties that NRI/PIO can purchase? There is no restriction on number of properties that NRI/PIO can purchase.

Can a person resident outside India hold any immovable property in India acquired by way of inheritance from a person resident in/outside India? Yes. A person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India as per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999.

With the specific approval of Reserve Bank a person resident outside India may hold any immovable property in India acquired by way of inheritance from a person resident outside India, 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.

Can a property bought by a NRI/PRO sold? An NRI can sell residential/commercial property in India to a person resident in India, an NRI or a PIO. However, a PIO can sell residential/commercial property in India only to a resident of India & NRIHe would need prior approval of the RBI for sale of residential/commercial property in India to a PIO.

Are there any taxes to be paid by an NRI on sale of his/her property? If an NRI is selling his/her property in India, depending on time or the amount of time he/she has held the property, the sale proceeds would be subjected to capital gains tax.

Can NRI/PIO transfer by way of mortgage his residential/commercial property to an authorized dealer/housing finance institution in India? Yes. A NRI/PIO cannot do so to a party abroad without the permission of the RBI.

Under the general permission available what is mode of payment for purchase of residential/commercial property in India by NRI/PIO? Under the general permission available NRI/PIO may purchase residential/commercial property in India out of 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.

Can NRI/PIO for the purpose of acquisition of flat/house in India for his own residential use avail of loan from authorized dealer against the security of funds held in his NRE Fixed Deposit account/FCNR (B) account? Yes, subject to certain terms and conditions

Can NRI/PIO, avail of housing loan in rupees from an authorized dealer or housing finance institution in India approved by the National Housing Finance Bank for purchase of residential accommodation or for the purpose of repairs/renovation/improvement of residential accommodation? Yes, subject to certain terms and conditions. Such loans can be repaid by the borrower by way of inward remittance through normal banking channel or by debit to his NRE/FCNR (B)/NRO account or out of rental income derived from renting out such property. Such loan can also be repaid by the borrower's close relatives through their account in India by crediting the borrower's loan account.

Can NRI/PIO repatriate the sale proceeds of residential/commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE/FCNR (B)/NRO account? If so, what is the quantum? NRI/PIO may repatriate the sale proceeds of residential/commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE/FCNR (B) account. The amount to be repatriated should not exceed the amount paid for acquisition of residential/commercial property (a) in foreign exchange received through normal banking channel or by debit to FCNR (B) account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid by debit to NRE account. The sale proceeds of residential/commercial property in India acquired by way of debit to NRO account cannot be repatriated and should be credited to NRO account only.

The rupee loan availed by NRI for purchase of residential accommodation was repaid either by inward remittance or by debit to NRE/FCNR (B) account. Can the sale proceeds of such property be repatriated? Yes. Repayment of loan in foreign exchange is treated as equivalent to the foreign exchange received for purchase of residential accommodation.

Can sale proceeds of any immovable property inherited by NRI/PIO/foreign national of non Indian origin from a person resident in India be remitted abroad? Yes. Amount not exceeding USD one million, per calendar year subject to production of documentary evidence in support of inheritance and Tax clearance certificate/no objection certificate from Income Tax authority to authorized dealer for remittances. However, if a PIO is a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran he should seek prior approval of Reserve Bank with documentary evidence in support of inheritance and tax clearance/no objection certificate from Income Tax authority. This remittance facility is not available to a citizen of Nepal or Bhutan.

Can sale proceeds of any immovable property in India inherited, by a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin resident outside India), from a person resident outside India be repatriated by him or his successor? No. He needs to seek prior approval of Reserve Bank with documentary evidence in support of inheritance and tax clearance/no objection certificate from Income Tax authority.

Can NRI/PIO rent out the residential/commercial property purchased out of foreign exchange/rupee funds, if not required for immediate use? Yes. Rent received, being current income may be credited to NRO/NRE account or remitted abroad.