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 If the immovable property was received as inheritance by the NRI/PIO can he/she repatriate the sale proceeds?
Yes, general permission is available to NRIs/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India. NRIs/PIO may repatriate an amount not exceeding $1 million, per financial year, on production of documentary evidence in support of acquisition/inheritance of assets, an undertaking by the remitter and certificate by a Chartered Accountant.
In case of a foreign national, sale proceeds can also be repatriated even if the property is inherited from a person resident outside India. But this is allowed only with prior approval of the Reserve Bank of India (RBI). The foreign national has to approach the RBI with documentary evidence in support of inheritance of the immovable property and the undertaking and the C.A. Certificate as mentioned above.
The general permission for repatriation of sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran and he/she has to seek specific approval of the RBI.

V. PROVISIONS FOR FOREIGN EMBASSIES/DIPLOMATS/CONSULTATE GENERALS
Can foreign embassies/diplomats/ consulate generals purchase/sell immovable property in India?
Yes, foreign embassies/ diplomats/consulate generals can purchase and sell any immovable property other than agricultural land/plantation property/farm house in India with prior clearance from the Government of India, Ministry of External Affairs. The payment should be made by foreign inward remittance through normal banking channels.

VI. OTHER ISSUES
Can NRI/PIO rent out the residential/commercial property purchased out of foreign exchange/rupee funds?
Yes, NRI/PIO can rent out the property without the approval of the RBI. Rent received can be credited to NRO/NRE account or remitted abroad. Powers have been delegated to the Authorised Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs/PIO who do not maintain an NRO account in India based on an appropriate certification by a chartered accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.

Can a person who had bought immovable property when he was a resident, continue to hold such property even after becoming an NRI/ PIO?
Yes, he can continue to hold the residential/commercial property/ agricultural land/plantation property/farm house in India without the approval of the RBI.

In which account can the sale proceeds of such immovable property be credited?
The sale proceeds may be credited to NRO account.
Can the sale proceeds of the immovable property bought by a person when he was a resident be remitted  abroad?
Yes, provided the amount to be remitted does not exceed $1 million per financial year, for all bonafide purposes to the satisfaction of Authorised Dealers and subject to tax compliance.

Can foreign nationals of non-Indian origin resident in India or outside India who had earlier acquired immovable property under FERA with specific approval of the RBI continue to hold the same? Can they transfer such property?
Yes, they may continue to hold the immovable property. However, they can transfer the property only with the prior approval of the RBI.

Is a resident in India governed by the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India)  Regulations, 2000?
A person resident in India who is a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan is governed by the provisions of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. He would require prior approval of the RBI for acquisition and transfer of immovable property in India even though he is resident in India. Such requests are considered by the RBI in consultation with the Government in India.
Indian regulators are known to modify laws and regulations with nagging frequency. The best of investments decisions suffer due to sudden swings in regulations. The provisions related to foreign investment in real estate in India have been relatively stable and no pejorative changes have been effected therein in the  recent  past. That has perhaps facilitated the  aggressive alteration of India’s skyline, due to large and outstanding building projects funded interalia, by foreign funds. It has not yet fully addressed the backlog of deficit in demand for space. Such long term deficit will always attract investment therein and returns will follow. So will NRIs.