NRI/POI HELP

NRI/PIO HELP

WHO IS AN NRI?
An Indian Citizen who holds a valid Indian passport and stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident Indian (NRI). Non-resident foreign citizens of Indian Origin are treated at par with non-resident Indians (NRI)

WHO IS CONSIDERED A PERSON OF INDIAN ORIGIN (PIO) FOR INVESTMENT IN IMMOVABLE PROPERTIES?
A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal) is deemed to be of Indian origin if:

He held an Indian passport at any time,
He or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (Act No. 57 of 1955).
 
WHAT IS AN OCB?
Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin residing outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocable held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs as long as the ownership/beneficial interest held in them by NRIs continues to be at least 60%.

WHAT ARE THE VAIOUS FACILITIES AVAIABLE TO NRIS/OCBS?
NRIs/OCBs are granted the following facilities:

Maintenance of bank accounts in India.
Investments in securities/shares of, and deposits with, Indian firms/companies.
Investments in immovable properties in India.
 
I AM AN NRI, CAN I BUY PROPERTIES IN INDIA?
If you are of Indian Origin and hold an Indian Passport, then you are entitled to buy property in India. If you are an overseas passport holder like a US Passport or a British Passport Holder, then you need to have a PIO Card. This can be applied for at the Indian Embassy or Consulate in your country where you are residing or you could enquire with them for further details. It is sufficient if you have your father’s or mother’s passport or birth certificate or any other proof of their being an Indian Citizen. It is essential to carry that proof with you.

HOW CAN I PAY FOR THE PROPERTY PURCHASED?

There is no restriction or condition on payment while buying property. Normal banking channels are applicable.
FCNR. Foreign Currency Non Resident account in India.
NRE. Non Resident (External) Rupee account in India.
Remittance from abroad through normal banking channels.
NRO. Non Resident (Ordinary) Rupee account in India.
Although the payment could be in rupees or any foreign currency, no repatriation benefits are applicable on these investments
 
CAN AN NRI GET HOME LOAN IN INDIA?
Yes, as an NRI you can apply for a home loan in India. Getting a home loan is as easy for an NRI as a resident Indian. Some lender may, however, ask for a local power of attorney holder.

CAN I LEASE MY PROPERTY IN INDIA EVEN THOUGH I STAY ABOARD?
If the NRI’s property is lying unused, he can lease it out and earn the proceedings. RBI approval or permission is not required. There are only two restrictions, (i.e.) the proceeds out of this lease is taxable and the proceeds cannot be taken out of India. Also, outright selling of NRI property does not require RBI permission although the profit on sale is liable to capital gains tax.

CAN I SELL MY PROPERTY?
If an NRI wishes to sell his property and take away the profits, then:
IF PROPERTY WAS BOUGHT IN FOREIGN EXCHANGE.

He can take away the proceeds.
Sale is restricted to only two properties
Sales allowed only after three years.
IF PROPERTY WAS BOUGHT IN INDIAN RUPEES. Money must be kept in India.
IF PROPERTY FOR COMMERCIAL PURPOSES IS BOUGHT IN FOREIGN EXCHANGE.
Any or all can be sold
Entire proceeds can be transferred.
 
IS THERE A LIMIT TO THE NO OF INVESTMENT FOR ACQUIRING COMMERCIAL OR RESIDENTIAL PROPERTY IN INDIA?
Non Resident Indians are allowed to make real estate investments in India without any cap on the quantity or the number of investments.

POWER OF ATTORNEY
The 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 possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose.

SALE OF PROPERTY
An NRI can sell property in India only to:

A person resident in India
An NRI
A PIO
 
A PIO can sell property in India only to:
A person resident in India
An NRI
A PIO (with the prior approval of Reserve Bank of India) A Foreign national of non-Indian origin, including a citizen of any of the following countries viz. Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan can sell property in India with the prior approval of Reserve Bank to:
A person resident in India
An NRI
A PIO

 

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