Any non-resident Indian (NRI), who wants purchasing a property in India, need to understand particular legal provisions pertaining to the purchase or owning of a stationary property in India under the Foreign Exchange Management Act (FEMA). NRIs and individuals of Indian origin (PIOs) are treated at par, for the purpose of investment in realty.
Types of properties, where NRIs or PIOs can invest
The Reserve Bank of India, through a circular, has actually offered general approval to NRIs, to buy any residential or commercial property in India. The investor need not seek any specific authorization from the RBI, nor is he required to send any interaction or intimation in this regard to the RBI. Under the existing basic approvals, an NRI can buy any number of residential or commercial properties. The income tax laws also allow an NRI to own as lots of residential or commercial property as s/he pleases.
In case the NRI is unable to come to India, the files pertaining to the purchase can be executed by any person, who is given a legitimate power of attorney. Under the RBI s basic permission, an NRI cannot buy any agricultural land or plantation property in India.
An NRI can purchase the property, either as a single owner, or jointly, with any other NRI A Resident Indian or a person, who is otherwise not enabled to invest in a property in India, cannot become a joint holder in such property, irrespective of the second holder’s contribution towards the purchase.
Continuance of ownership of property, after becoming an NRI.
Exactly what if an individual who owns properties in India, consequently, becomes an NRI? Such a person can continue to hold the property in his name in India. An NRI is likewise enabled to continue to own any farming land, plantation property, or farmhouse that he owned when he ended up being an NRI, which he is otherwise not permitted to purchase, after becoming an NRI.
They are likewise enabled to let out the property, regardless of when it was obtained. The lease gotten from such property, can be remitted, after suitable Indian taxes have actually been paid on such rent.
Any NRI is permitted to sell, or present an immovable property to any person homeowner in India. S/he can also gift or transfer any property, aside from farming property, farmhouse, or plantation property, to any NRI.