- Do non-resident Indian citizens require permission of Reserve Bank to acquire residential / commercial properly in India?
NRIs/ PIOs have been granted general
permission to acquire residential/ commercial property in India,
other than agriculture/ plantation/ farm house, in terms of the
provisions contained in the FEMA Notification No. 21 / 2000-RB dated
3rd May 2000.
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- Can such property be sold without the permission of Reserve Bank?
General
Permission has also been given to NRIs /PIOs to dispose of such
property acquired in India without any approval from RBI in terms of
Regulation 3 & 4 of the above Notification No.21 / 2000 RB dated
3rd May 2000.
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- Can sale proceeds of such property if and when sold be remitted out of India?
Yes.
Sale proceeds of such property can be repatriated out of India in
terms of Regulation 6 of Notification No.21 / 2000 RB dated 3rd
May 2000.
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- Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?
Authorised
Dealers in India have been permitted to allow repatriation of sale
proceeds of immovable property by a NRI or PIO, upto the extent of
the amount paid in foreign exchange, (including the installments of
housing loan repaid, if any, remitted from abroad) for acquiring the
property. In the case of residential property, the repatriation of
sale proceeds is restricted to not more than two such properties in
terms of regulation 6 of Notification. No. 21 / 2000 RB dated 3rd
May 2000. Such NRIs / PIOs shall furnish a declaration to the effect
that applicable taxes have been paid or provided for, in respect of
sale proceeds that is repatriated.
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- What is the procedure for seeking such repatriation?
NRIs may approach their bankers for
repatriating such sale proceeds. A declaration shall be furnished to
the Bank regarding payment of applicable income tax on income arising
out of the property.
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- Can NRIs obtain loans for acquisition of a house / flat for residential purpose from financial institutions providing housing finance?
Yes. NRIs can obtain loans from banks
/ housing finance institutions for acquiring house / flat for
residential purpose.
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- Can authorized dealer grant loans to NRIs for acquisition of a flat / house for residential purposes?
Authorised
Dealers (banks) can also grant loans to NRIs for acquisition of a
flat / house, for residential purpose, subject to the terms and
conditions specified under Regulation 8 of Notification No. FEMA 4
/2000 RB dated 3rd May 2000.
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