NRI Corner

1. The difference between Non-Resident Indian (NRI) And Person Of Indian Origin (PIO)?

A Non-Resident Indian (NRI) is an Indian citizen who holds an Indian travel permit/ Passport and has incidentally emigrated to another nation for six months or more for work, living arrangement, training or whatever other reason.

A Person of Indian Origin (PIO) stands for Person of Indian origin or family line however who is not a citizen of India and is the resident of another nation. A PIO may have been a citizen of India and taken the citizenship of another nation, or have ancestors born in India or different states.

Person of Indian Origin PIOs is treated similarly as non-resident Indian Citizen (NRIs) for particular facilities. An outside national (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is regarded to be of the Indian Origin in the event that he held an Indian Passport whenever, or he or his father or grandfather (paternal) was a native of India by righteousness of the (Constitution of India or the Citizenship Act, 1955(57 of 1955).

2. Is Permission Required From RBI To Purchase Property In India?

No. General Permission is granted to buy residential / business property in India to a person residing outside India who is an India national (NRI) and who is a Person of Indian Origin (PIO).

3. What Are The Formalities Required For The Payments To Be Done Under General Permission      Guidelines?

The purchase consideration ought to be met either out of internal settlements in foreign trade through typical banking channels or out of assets from NRE/FCNR accounts kept up with banks in India.

They are required to record a statement in form IPI 7 with the Central Office of Reserve Bank at Mumbai inside a time period of 90 days from the date of procurement of immovable property or last installment of purchase consideration alongside an certified copy of the document confirming the exchanges and bank authentication/certificate in regards to the consideration paid.

4. Can Such Property Be Sold Without Permission Of Reserve Bank?

Yes, Reserve Bank has allowed general consent for selling of such property. However, if the property is obtained by another foreign national of Indian Origin, purchase consideration ought to either be dispatched to India or paid out of NRE/FCNR accounts.

5. Can Net Proceeds Of Selling Such Property Be Remitted Out Of India?

For private residential properties obtained on or after 26th May 1993, Reserve Bank considers for repatriation applications of sale proceeds up to the consideration remitted in foreign trade for the procurement of the property for two of such properties. The balance amount of proceeds assuming any or net proceeds in regard to properties obtained before 26th May 1993 should be credited to the general non-resident bank account of the proprietor of the property.

6. What Is The Procedure For Seeking Repatriation And Conditions Required Towards The Sale Proceeds?

Applications for fundamental permission for settlement of net proceeds ought to be made by form IPI 8 to the Central Office of Reserve Bank at Mumbai inside 90 days from selling the property. Applications for repatriation of proceeds considered only for the deals which occurred after three years from the date of last purchase deed or from the date of the final installment of consideration sum, whichever is later.

7. Can Foreign National Of Indian Origin Acquire Or Dispose Of Such Property By Way Of Gift To      Relatives/Organizations/Registered Charitable Trust In India Or Abroad?

Yes. General permission has been granted by reserve bank to foreign nationals of Indian Origin to obtain or discard properties up to two houses by the method of gifting from or to a relative who might be an Indian national or a person of Indian origin whether occupant in India or not, subject to co with related tax laws.

8. Can The Properties Be Given On Rent If Not Required For Immediate Use?

Yes. Reserve Bank has allowed general consent for letting out any immovable property in India. The rental proceeds of any investment of such income are qualified for repatriation.

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