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Are Non Residents of India
or foreign nationals of Indian origin allowed to purchase
immovable property in India?
Foreign nationals of Indian origin, whether residing in
India or abroad, have a general permission to purchase immovable
property in India. |
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Are Non Resident Indian
nationals accountable to the Reserve Bank of India before
acquiring residential / commercial property in India?
There is no such permission required by Non-Resident
Indian nationals to acquire immovable property in India. |
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What should be the method
of payment for purchasing residential immovable property in
India by foreign nationals of Indian origin under the general
permission?
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. |
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What are the formalities to
be completed by the foreign nationals of Indian origin for
purchasing residential immovable property in India?
The foreign nationals are required to file a declaration
in Form IPI 7 with the Central Office of the Reserve Bank of
India at Mumbai. This should be done within a period of 90 days
from the date of purchase of immovable property or final payment
of purchase consideration. A certified copy of the document
evidencing the transaction and bank certificate regarding the
consideration paid has also to be submitted with it. |
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Keeping you update of the
property market developments in India from time to time
Applications for repatriation of sale proceeds are
considered, if the sale takes place after three years from the
date of final purchase. The date of payment of final of
consideration amount can also be, whichever is later. |
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Can Indian companies grant
loans to their NRI staff?
According to the Reserve Bank of India, the Indian
firms/companies can grant housing loans to their employees
deputed abroad and holding Indian passport subject to certain
conditions. |
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Can NRI's obtain loans for
acquisition of a house/flat for residential purpose from
financial institutions providing housing finance?
The Reserve Bank of India grants a general permission to
certain financial institutions in India that provide housing
finance. HDFC, LIC Housing Finance Ltd., etc., are capable to
grant housing loans to non-resident Indian nationals for
acquisition of a house/flat for self-occupation subject to
certain conditions. |
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Can the rental income from
such property be remitted outside India?
Such income cannot be remitted outside the country, it
will only be credited to the ordinary non-resident rupee account
of the owner of the property. Restricted remittances are,
however, now permitted. |
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Can sale proceeds of such
property if and when sold be remitted out of India?
With respect to the 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. |
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What is the procedure for
seeking such repatriation?
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. |
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Can foreign citizens of
Indian origin acquire or dispose of residential property by way
of gifting it?
Foreign citizens of Indian origin can acquire or dispose
off properties up to two houses in the form of gift to or from 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. |
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Can the properties
(residential/commercial) be given on rent if not required for
immediate use?
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. |
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Can the properties
(residential/commercial) be given on rent if not required for
immediate use?
The foreign national of Indian Origin have the permission
from the RBI to lease out immovable property in to anyone in
India. The income from this rent or proceeds of any investment
of such income has to be credited to NRO account. |
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Can a 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?
The dealer can grant house loan to the non- resistant
Indians, however in such cases the payment of margin money and
repayment of the loan installments should be made by the NRI. |
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