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Q.1 |
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Do non-resident
Indian citizens require permission of Reserve Bank to
acquire residential/commercial properly in India? |
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Ans. |
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No. |
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Q.2 |
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Do foreign citizens
of Indian origin require permission of Reserve Bank to
purchase immovable property in India for their residential
use? |
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Ans. |
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Yes.
However, 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 of Reserve Bank. |
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Q.3 |
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In what manner the purchase
consideration for the residential immovable property should
be paid by foreign citizens of Indian origin under the
general permission?. |
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Ans. |
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The
purchase consideration should be met 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. |
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Q. 4 |
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What are the formalities
required to be completed by foreign citizens of Indian
origin for purchasing residential immovable property in
India under the general permission. |
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Ans. |
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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
consideration alongwith a certified copy of the
document evidencing the transaction and bank
certificate regarding the consideration paid. |
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| Q. 5 |
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Can such property be
sold without the permission of Reserve Bank . |
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Ans. |
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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. |
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| Q. 6 |
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Can sale proceeds of
such property if and when sold be remitted out of India? |
| Ans. |
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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. |
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| Q.7 |
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Are any conditions required
to be fulfilled if repatriation of sale proceeds is desired? |
| Ans. |
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Applications for repatriation of sale proceeds are
considered provided the sale takes place after three
years from the date of final purchase deed or from the
date of payment of final instalment of consideration
amount, whichever is later. |
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| Q. 8 |
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What is the procedure
for seeking such repatriation? |
| Ans. |
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Applications for necessary permission for remittance
of sale proceeds should be made in form IPI 8 to the
Central Office of Reserve Bank at Mumbai within 90
days of the sale of the property. |
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| Q.9 |
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Can foreign citizens
of Indian origin acquire or dispose of residential property
by way of gift? |
| Ans. |
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Yes.
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. |
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| Q.10 |
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Can foreign citizens
of Indian origin acquire commercial properties in India? |
| Ans. |
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Yes.
Under the general permission granted by Reserve Bank
properties other than agricultural land/farm
house/plantation property can be acquired by foreign
citizens of Indian origin provided the purchase
consideration is met either out of inward remittances
in foreign exchange through normal banking channels or
out of funds from the purchasers' NRE/FCNR accounts
maintained with banks in India and a declaration is
submitted to the Central Office of Reserve Bank in
form IPI 7 within a period of 90 days from the date of
purchase of the property/final payment of purchase
consideration. |
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| Q.11 |
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Can they dispose of
such properties? |
| Ans. |
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Yes. |
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| Q. 12 |
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Can sale proceeds of
such property be remitted out of India? |
| Ans. |
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Yes.
Repatriation of original investment in respect of
properties purchased by foreign citizens of Indian
origin on or after 26th May 1993 will be allowed to be
remitted up to the consideration amount originally
remitted from abroad provided the property is sold
after a period of three years from the date of the
final purchase deed or from the date of payment of
final instalment of consideration amount,whichever is
later. Applications for the purpose are required to be
made to the Central Office of Reserve Bank within 90
days of the sale of property in form IPI 8. |
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| Q. 13 |
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Can the properties (residential/commercial)
be given on rent if not required for immediate use? |
| Ans. |
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Yes.
Reserve Bank has granted general permission for
letting out of any immovable property in
India .
The rental income or proceeds of any investment of
such income has to be credited to NRO account. |
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| Q.14 |
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Can NRIs obtain loans
for acquisition of a house/flat for residential purpose
from financial institutions providing housing finance? |
| Ans. |
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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 acquisition
of houses/flats for self-occupation subject to certain
conditions. |
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| Q. 15 |
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Can authorised dealer
grant loans to NRIs for acquisition of a flat/house for
residential purposes? |
| Ans. |
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Authorised dealers have been granted permission to
grant loans up to non-resident Indian nationals for
acquisition of house/flat for self-occupation on their
return to
India
subject to certain conditions. Repayment of the loan
should be made within a period not exceeding 15 years
out of inward remittance through banking channels or
out of funds held in the investments' NRE/FCNR
accounts. |
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| Q.16 |
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Can Indian companies
grant loans to their NRI staff? |
| Ans. |
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Reserve Bank permits Indian firms/companies to grant
housing loans to their employees deputed abroad and
holding Indian passport subject to certain conditions. |
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