Rules that make it easy for NRIs to buy property in India

March 23, 2011 - PRLog -- It makes sense for non-resident Indians (NRIs) and persons of Indian origin (PIOs) to invest in property in India. A NRI is a person who is not resident in India. According to the Foreign Exchange Management Act (FEMA), 'person resident in India' includes a person residing in India for more than 182 days during the course of the preceding financial year.
It does not include a person who has gone out of India on employment , business or vocation, or for any other purpose for an uncertain period. Also, a person who has come to stay in India other than on employment , business or vocation, or for any other purpose for an uncertain period. All other persons are NRIs.
NRIs are permitted to buy and sell property in India. The acquisition and transfer of property by NRIs should be in accordance with the FEMA. The property should be purchased through a registered conveyance deed. It may also be purchased on a power of attorney. In the latter case, an agreement to sell and a power of attorney are executed by the seller in favour of the buyer.
RBI PERMISSION NOT NEEDED
NRIs do not require permission of the Reserve Bank of India (RBI) to acquire residential or commercial property in India. The RBI has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase property in India for their bona fide residential purposes . The payment has to be made either out of inward remittances in foreign exchange through normal banking channels or out of funds in a NRE or FCNR account maintained with a bank in India.
DECLARATION MANDATORY
Foreign citizens of Indian origin, purchasing residential property in India under the general permission are required to file a declaration with the central office of the RBI at Mumbai within 90 days from the date of purchase of the property or final payment of amount. This has to include a certified copy of the document evidencing the transaction and bank certificate regarding the amount paid.
SALE POSSIBLE
The RBI has granted general permission for sale of such property without its permission. However, where the property is purchased by another foreign citizen of Indian origin, the funds towards the purchase should either be remitted to India or paid out of the balance in a NRE or FCNR account.
For more details contact the Expert Real Estate / Property Attorneys & Lawyers at :
Global Lawyers
Call: 0091 9810153965
Visit : http://www.globallawyers.in

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