NRI Corner

What is meant by a person resident in India?

As per India's Foreign Exchange Management Act (FEMA) 1999, a person resident in India is a person residing in India for more than 182 days during the course of the previous financial year (April-March) and who has come to or stays in India either for employment, business or for any other vocation.

Who is the Person of Indian Origin (PIO)?

PIO means an individual (not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan), who at any time held an Indian passport, or who or either of his parents or grandparents were a citizen of India according to the Indian Constitution or the Citizenship Act, 1955.

Who is an NRI?

As per India's Foreign Exchange Management Act (FEMA) 1999, an NRI or Non Resident Indian is a citizen of India or a foreign national of Indian origin living outside India for the purpose of employment, business or any other vocation, which would indicate his intention to stay outside India for an indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182 days.

Do NRIs require consent of the Reserve Bank of India (RBI) to buy immovable property in India?

No, NRIs don't require consent from the RBI to buy an immovable property in India, provided the property is residential or commercial in nature.

Can residential properties owned by NRIs be given for rent if not required for immediate residential use?

The general permission granted by the Reserve Bank allows NRIs to rent out their properties. The income generated is eligible for repatriation.

Are there Any Tax Benefits For Non-Resident Indians buying properties?

No tax benefits are available for NRI's unless you file your returns and subsequently become eligible to avail the tax benefits as mentioned under Home Loan FAQ's.

What are the documents required for obtaining NRI Home Loans?

Apart from the documents mentioned under the home loan section for Indian citizens, NRIs are required to submit a few additional documents as well. These include:
A copy of the passport
A copy of the works contract or the labor card
The power of attorney (POA). (POA is required because the borrower is not based in India

How is the mode of payment for NRI home loans?

The housing loan needs to be paid upfront for the entire tenure of the loan by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI. Generally, payments are done through NRO, NRE, NRNR and FCNR accounts. These accounts change on the basis of RBI regulations.

What is the repayment period for the home loan for NRIs?

Home loan offered to NRIs do not exceed 5 years in major cases. However, some financial institutions offer loans for a term of 7 years as well. The repayment for the loan is done through monthly installments (EMI), which usually begin after the entire loan is disbursed. Cases which involve part disbursement, you need to pay simple interest at the interest rate applicable on the amount disbursed.

What is the eligibility criteria for obtaining NRI Home Loans?

The eligibility is calculated in the same way as it is done for resident Indians with special emphasis on:
Qualifications - Graduate (minimum)
Current job profile and work experience
Chances of continuing abroad for the loan tenure
Chances of servicing the loan with an extended tenure in case the applicant needs to return to India

What kinds of property can an NRI avail home loans for?

To purchase a house which is either ready to move in, under construction or bought from another owner, an NRI is eligible to apply for home loans. Additionally, NRIs can apply for home loans -
For construction of a property on a plot of land by self
To purchase a plot allotted by a society/development authority
For the purpose of renovation or improvement of an existing property in India

Can proceeds of the sale of such properties be remitted out of India?

In case of residential properties, the repatriation of sale proceeds is restricted to not more than two such properties, if the property was purchased from funds held in an NRE Account. Additionally, the amount repatriated out of India should not exceed the amount paid for acquisition of the immovable property in the foreign exchange received through normal banking channels or from the funds held in FCNR or NRE Account.

Can a home/land be sold by an NRI or Person of Indian Origin without the permission of the Reserve Bank of India?

Yes, the RBI has granted general permission for sale of property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.

Can an NRI or a PIO or a foreign national of non-Indian origin held any immovable property in India acquired through inheritance from a person resident outside India?

With specific approval from the RBI , a resident outside India may hold an immovable property in India acquired through inheritance from a person resident outside India, provided the owner had acquired such property in accordance with the regulations of the foreign exchange law in force at the time of acquisition or should be under FEMA guidelines.

Can a person resident outside India hold any immovable property in India acquired by way of inheritance from a person resident in India?

Yes. A person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India as per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999.

Can an NRI/PIO acquire residential/commercial property by way of gift under the general permission available?

Yes. Under the general RBI guidelines, NRI/PIO may acquire residential/commercial property by way of gift from a person resident in India or an NRI or a PIO.

Can a foreign national of non-Indian origin acquire residential property on a lease in India?

Yes. A Foreign National of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can acquire residential properties on lease in India. If the lease does not exceed five years, he/she does not require any prior permission from the RBI.

Can an NRI or PIO buy property in India jointly with other Indian citizens/PIO?

Yes.

Can NRI or PIO buy property in India jointly with foreign citizen?

No, an NRI or a PIO cannot buy a property in India jointly with a foreign citizen.

Can an NRI or a PIO or a foreign national of non-Indian origin acquire agricultural land/plantation property/farm house in India?

No. A person resident outside India cannot acquire by way of purchase agricultural land/plantation property/farm house in India.

Is there any limit on the number of housing properties that an NRI can buy?

No. There is no limit placed on the number of residential properties an NRI can buy in India.

Contact Us

On Site Sales Office

Satellite Elegance, Film City Road,
Pankaj Shah Marg, Goregaon (E).
Mumbai, 400063
Phone: 9619224444

Head Office

Solitaire Corporate Park, S-14, 7th Floor,
Andheri-Ghatkopar Link Road,
Andheri (E)
Phone: 022-2491 8181/8282

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Disclaimer

All the images shown here are tentative, indicative and for representation purpose only. The plans are tentative and subject to approval from respective authorities. The Promoter reserves the right to modify/change/amend/alter the plans without any intimation and obligation. Extent and scope of amenities are subject to variation and approval from authorities. This advertisement does not constitute or form part of an offer and all the transactions in this development shall be solely governed by the Agreement for Sale to be entered into between the parties. The Project is mortgaged to L & T Finance Ltd. and L & T Housing Finance Ltd. and No Objection/ Permission of the said bank/ institution would be provided, if required. Government Fees & Taxes, Stamp Duty & Registration Charges are extra (As Applicable). Other charges payable at the time of Possession are extra and not included in the prices, if any mentioned herein. Terms and Conditions Apply. Project Registered with Maha-Rera under Regn. no. P51800021913 and available at website: http://maharera.mahaonline.gov.in

Disclaimer

All the images shown here are tentative, indicative and for representation purpose only. The plans are tentative and subject to approval from respective authorities. The Promoter reserves the right to modify/change/amend/alter the plans without any intimation and obligation. Extent and scope of amenities are subject to variation and approval from authorities. This advertisement does not constitute or form part of an offer and all the transactions in this development shall be solely governed by the Agreement for Sale to be entered into between the parties. The Project is mortgaged to L & T Finance Ltd. and L & T Housing Finance Ltd. and No Objection/ Permission of the said bank/ institution would be provided, if required. Government Fees & Taxes, Stamp Duty & Registration Charges are extra (As Applicable). Other charges payable at the time of Possession are extra and not included in the prices, if any mentioned herein. Terms and Conditions Apply. Project Registered with Maha-Rera under Regn. no. P51800021913 and available at website: http://maharera.mahaonline.gov.in