Aquisition of Immovable property
By NRI's holding Indian Passport
- NRI's holding Indian passport do not require prior
permission of Reserve Bank of India to buy residential or
commercial immovable property in India.
- The purchase consideration may be paid either by
remittance of funds from abroad through normal banking
channels or out of NRE / FCNR / NRO account.
- NRI's of Indian nationality do not require any
permission for acquisition, transfer or disposal by way of
gift of immovable property which is not a farmhouse or
agricultural land or plantations property. Declaration on
form IPI 7 for acquisition of commercial property for
carrying on any industrial, commercial or trading activity
by their proprietary / partnership firm in India is
required to be filed with RBI within 90 days from date of
purchase.
By foreign citizens of Indian origin
- Under the general permission to NRI's holding foreign
passport, the RBI has allowed them to acquire, hold,
transfer or dispose off by way of sale or inheritance,
immovable properties situated in India.
- The general permission has been granted provided :
- The property is for the purchaser's bonafide residential
use;
- The purchase consideration is met either by remittance
from funds abroad through normal banking channels or out
of NRE / FCNR.
- Income accruing by way of rent from the properties
purchased or acquired by inheritance will not be allowed
to be repatriated abroad even if the purchase
consideration was met out of NRE / FCNR account.
- It is however, necessary for foreign citizens of Indian
origin to declare such property to RBI within a period of
90 days from the date of purchase in the prescribed IPI 7
to the Chief General Manager, Exchange Control Department,
Foreign Investment Division, Central Office Department,
Foreign Investment Division, Central Office, RBI Bombay.
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