Q.1 Who can purchase immovable property in India?
Under the general permission available, the following categories can freely purchase immovable property in India: i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India ii) Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
1. At any time, held Indian passport, or
2. Who or either of whose father or grandfather was a citizen of India by virtue of
the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India.
Q.2. Whether NRI/PIO can acquire agricultural land/plantation property/farm
house in India?
No. Since general permission is not available to NRI/PIO to acquire agricultural land/ plantation property / farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.
Q.3. Do any documents need to be filed with Reserve Bank of India after
purchase?
No. An NRI / PIO who has purchased residential/commercial property under general permission, is not required to file any documents with the Reserve Bank.
Q.4. How many residential/commercial properties can NRI/PIO purchase
under the general permission?
There are no restrictions on the number of residential/commercial properties that can be purchased.
Q.5 Can a foreign national who is a person resident in India purchase
immovable property in India?
Yes, but the person concerned would have to obtain the approvals, and fulfill the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India.
Q.6 Can an office of a foreign company purchase immovable property in
India?
A foreign company which has established a Branch Office or other place of business in India, in accordance with FERA / FEMA regulations, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for other borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. Further, acquisition of immovable property by entities who had set up Branch Offices in India and incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank to acquire such immovable property.However, if the foreign company has established a Liaison Office, it can not acquire immovable property. In such cases, Liaison Offices can take property by way of lease not exceeding 5 years.
Q.7 Whether immovable property in India can be acquired by way of gift?
Yes, NRls and PIOs can freely acquire immovable property by way of gift either from
i) a person resident in India or
ii) an NRI or
iii) a PIO.
However, the property can only be commercial or residential. Agricultural land/plantation property/ farm house in India cannot be acquired by way of gift.
(b) A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India through gift.
Q.8. Whether a non-resident can inherit immovable property in India?
Yes, a person resident outside India i.e.
i) an NRI
ii) a PIO and
iii) a foreign national of l1on-lndian origin can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank.
Q.9. From whom can the non-resident inherit immovable property?
A person resident outside India (i.e. NRI or PIO or foreign national of nonIndian origin) can inherit immovable property from
(a) a person resident in India.
(b) a person resident outside India.
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.
Transfer of immovable property in India
Q.10. Can an NRI/ PIO/foreign national sell his residential / commercial
property?
(a) NRI can sell property in India to i) a person resident in India or ii) an NRI or iii) a PIO.
(b) PIO can sell property in India toi) a person resident in India. ii) an NRI or iii) a PIO – with the prior approval of Reserve Bank
(c) 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 sell property in India with prior approval of Reserve Bank to
i) a person resident in India
ii) an NRI
iii) a PIO
Q.11. Can an agricultural land/plantation property/farm house in India
owned/held by a non-resident be sold?
(a) NRI/ PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
(b) Foreign national of non-Indian origin resident outside India would need prior approval of Reserve Bank to sell agricultural land/plantation property/ farm house in India
Q.12. Can a non-resident gift his residential/commercial property?
Yes.
(a) NRI/ PIO may gift residential/commercial property to
(i) person resident in India or
(ii) an NRI or
(iii) PIO.
(b) foreign national of non-Indian origin needs prior approval of Reserve Bank.
Q.13. Can an NRI/PIO/Foreign national holding an agricultural
land/plantation property/farm house in India gift the same?
(a) NRI/PIO can gift but only to a person resident in India who is a citizen of India.
(b) foreign national of non-Indian origin needs prior approval of Reserve Bank
(iii) Transfer through mortgage
Q.14. Can residential/commercial property be mortgaged?
i) NRI/ PIO can mortgage to:
(a) an authorised dealer/ housing finance institution in India- without the approval of Reserve Bank.
(b) a party abroad – with prior approval of Reserve Bank.
ii) a foreign national of non-Indian origin can mortgage only with prior approval of Reserve Bank
iii) a foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an authorized dealer in India.
Q.15. Is there any restriction on number of residential properties in respect of which sale proceeds can be repatriated by NRI/ PIO?
A.26. Yes, sale proceeds of not more than two residential properties can be repatriated.
Q.16. Can the sale proceeds of the immovable property referred to in be remitted abroad?
Yes, provided the amount to be remitted does not exceed USD one million per financial year, for all bonafide purposes to the satisfaction of Authorised Dealers and subject to tax compliance.
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