Do non-resident Indian citizens require permission of Reserve Bank to
acquire residential / commercial properly in India?
NRIs/ PIOs have been granted general permission
to acquire residential/ commercial property in India, other than agriculture/
plantation/ farm house, in terms of the provisions contained in the FEMA
Notification No. 21 / 2000-RB dated 3rd May 2000.
- Can such property be sold without the permission of Reserve Bank?
General Permission has also been given to NRIs
/PIOs to dispose of such property acquired in India without any approval from
RBI in terms of Regulation 3 & 4 of the above Notification No.21 / 2000 RB
dated 3rd May 2000.
- Can sale proceeds of such property if and when sold be remitted out of
Yes. Sale proceeds of such property can be
repatriated out of India in terms of Regulation 6 of Notification No.21 / 2000
RB dated 3rd May 2000.
- Are any conditions required to be fulfilled if repatriation of sale
proceeds is desired?
Authorised Dealers in India have been permitted
to allow repatriation of sale proceeds of immovable property by a NRI or PIO,
upto the extent of the amount paid in foreign exchange, (including the
installments of housing loan repaid, if any, remitted from abroad) for acquiring
the property. In the case of residential property, the repatriation of sale
proceeds is restricted to not more than two such properties in terms of
regulation 6 of Notification. No. 21 / 2000 RB dated 3rd May 2000.
Such NRIs / PIOs shall furnish a declaration to the effect that applicable taxes
have been paid or provided for, in respect of sale proceeds that is repatriated.
- What is the procedure for seeking such repatriation?
NRIs may approach their bankers for repatriating
such sale proceeds. A declaration shall be furnished to the Bank regarding
payment of applicable income tax on income arising out of the property.
- Can NRIs obtain loans for acquisition of a house / flat for residential
purpose from financial institutions providing housing finance?
Yes. NRIs can obtain loans from banks / housing
finance institutions for acquiring house / flat for residential
- Can authorized dealer grant loans to NRIs for acquisition of a flat /
house for residential purposes?
Authorised Dealers (banks) can also grant loans
to NRIs for acquisition of a flat / house, for residential purpose, subject to
the terms and conditions specified under Regulation 8 of Notification No. FEMA 4
/2000 RB dated 3rd May 2000.