FAQ
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An Indian Citizen who stays abroad for employment / carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of staying abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central / State Government and Public Sector Undertakings on temporary assignments are also treated as non-residents) Non-resident foreign citizens of Indian Origin are treated at par with non-resident Indian citizens.

A foreign citizen is deemed to be of Indian origin if,

  • He held an Indian passport at any time, OR
  • He or his father or paternal grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

This citizen should be other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal)

No

Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are therefore not required to obtain separate permission from The Reserve Bank.

The payment should be made either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.

They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase along with a certified copy of the document confirming the transaction and bank certificate regarding the payment.

Yes. The Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, provided gift tax has been paid.

Yes. Under the general permission granted by the reserve Bank of India with the same procedure as residential property.

Yes. Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC,LIC Housing Finance Ltd. etc. to grant housing loans to non-resident Indian nationals for acquiring houses for self-occupation subject to certain conditions.

Yes. Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

Regulations regarding acquisition and transfer of immovable property in India by a person resident outside India have been notified vide RBI Notification No. FEMA 21/2000-RB dated May 3, 2000 as amended vide Notification No. FEMA 64/2002-RB dated June 29, 2002 and Notification No. FEMA 65/2002-RB dated June 29, 2002 and relevant directions issued in the form of A. P. (DIR Series) Circulars. These are available on RBI web site: www.fema.rbi.org.in

No.

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Yes.

An NRI can sell/ transfer the property in India to a citizen of India or NRI or foreign national if Indian origin.

Under the general permission available NRI/PIO may transfer by way of sale his agricultural land/plantation property/farm house in India to a person resident in India who is a citizen of India.

Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

We have tried to dispel the general doubts and queries, still in case of any question, query or doubt feel free to contact us.