FAQ

FAQ

Frequently Asked Questions
+ Who is a non - resident Indian (NRI)?

A citizen of India who stays abroad for employment or for carrying out any business for an uncertain period of time is considered as a non-resident. People who are posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also considered as non-residents. Non-resident foreign citizens of Indian Origin are treated on par with NRI's and are offered the same facilities.

+ What are the various facilities available to NRI's?


They can maintain their bank accounts in India
They are allowed to invest in securities/shares/deposits of Indian companies and firms
They are allowed to invest in immovable properties in India

+ Do non-resident Indian citizens need permission of RBI (Reserve Bank of India) to acquire residential and commercial property in India ?

NRI's are not required to take any permission of RBI while acquiring any residential and commercial property in India.

+ Do foreign citizens of Indian origin need permission of RBI (Reserve Bank of India) to purchase immovable property in India for their residential use?

Reserve Bank of India has given permission to the foreign citizens of Indian origin to purchase immovable property in India for their residential use. Hence, they do not need to acquire any permission.

+ What are the formalities that are needed to be completed by foreign citizens of Indian origin while purchasing residential immovable property in India under general permission?



While purchasing a residential immovable property in India, the foreign citizens of Indian origin are required to file a declaration in form IPI 7 with Central Office of Reserve Bank at Mumbai within 90 days from the date of purchase of that immovable property.

They can also submit a final payment of purchase consideration along with a certified copy of document which is an evidence of transaction and the bank certificate of the consideration paid.

+ Can the foreign citizens of Indian origin sell property without the permission of RBI (Reserve Bank of India)?

Reserve Bank of India has given permission to foreign citizens of Indian origin to sell a property. However, wherever the property is purchased by them, the funds towards the purchase consideration should be either remitted to India or the paid out of balances in NRE/FCNR accounts.

+ Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?

Reserve Bank of India has given permission to foreign citizens of Indian origin to acquire or dispose of a residential property by way of gift from or to any relative who is a citizen of India or a person of Indian origin (in case he is not the citizen of India) subject to compliance with applicable tax laws.

+ Can foreign citizens of Indian origin acquire commercial properties in India?

Reserve Bank of India has given permission to foreign citizens to acquire commercial properties in India other than agricultural land/farmhouse/ plantation property.

+ Can the properties (residential/commercial) be given out on rent if not required for immediate use?

Reserve Bank of India has given permission to rent out any immovable residential/commercial property in India. However, the rental income or proceeds of any investment of such income are eligible for repatriation.

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