- Do non–resident Indian nationals require permission of the Reserve Bank to acquire residential/Commercial property in India?
No permission is required by non-resident Indian nationals to acquire immovable property in India.
- Are Foreign Nationals of Indian origin allowed to purchase immovable property in India?
Yes, Foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India.
- What should be the method of payment for purchasing residential immovable property in India by Foreign Nationals of Indian origin under the general permission?
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.
- For Non-resident Indians staying abroad, can the property be purchased through an agent or through power of attorney?
Non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possessions, etc) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.
- Are there any formalities to be completed by foreign nationals of Indian origin for purchasing residential immovable property in India?
They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Bombay within a period of 90 days from the date of puchase of Immovable property.
- Can such residential property be given on rent if not required for immediate residential use?
- Can the rental income from such property be remitted outside India?
No. Such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.