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FAQ
on acquisition of residential / commercial premises in India by
Non-Resident Indians ("NRI") & Person of Indian Origin ("PIO") |
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Who is a NRI under the provisions of Foreign Exchange
Management Act? |
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Ans: |
Generally, an Indian
Citizen 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 or a person who
is not resident in India for a period over 182 days is a non-resident
Indian. Persons posted in U.N. organisations and officials deputed
abroad by Central/State Governments and Public Sector undertakings on
temporary assignments are also treated as non-residents. |
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Who is a person of Indian Origin? |
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Ans: |
Generally, under the
provisions of Foreign Exchange Management Act a person of Indian
Origin is an individual (other than a citizen of Pakistan, Bangladesh,
Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan) who At any time
held an Indian passport, or He or his father or his grandfather was a
citizen of India by virtue of the Constitution of India or Citizenship
Act, 1955 (57 of 1955). Non-resident foreign citizens of Indian Origin
are treated on par with non-resident Indian citizens for the purpose
of certain facilities. |
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Do NRIs and PIOs require permission of Reserve Bank to
acquire residential/commercial property in India? |
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Ans: |
NRIs and POIs do not
require permission from RBI to acquire residential / commercial
premises in India (other than agricultural land/farm house/plantation
property). A person resident outside India acquiring property to carry
on business from India has to file with the Reserve Bank a declaration
in Form IPI within ninety days from the date of acquisition of
immovable property. A citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, China, Iran, Nepal or Bhutan cannot acquire immovable
property without prior permission of Reserve Bank. However, he can
take on lease an immovable property for not more than 5 years. |
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Can NRIs and PIOs sell residential/commercial premises in
India without the permission of Reserve Bank? |
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Ans: |
A person resident outside
India who is a citizen of India is permitted to sell immovable
property in India other than agricultural/plantation/farm house to a
person resident in India or to an NRI or to a PIO resident outside
India. He can also gift residential or commercial property in India to
a person resident in India, NRI or to a PIO resident outside India.
However, he can gift or sale any agricultural
land/farmhouse/plantation property only to a person resident in India
who is a citizen in India. A PIO resident outside India is permitted
to sell the immovable property other than agricultural
land/farmhouse/plantation property to a person resident in India. |
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