How To Acquire Immovable Property In India By Foreigners (No. of words: 605)
Summary This article enumerates in fair detail the process of acquiring property anywhere in India by NRIs and PIOs. It lists the rules and regulations prevalent and the types of properties that can be acquired. For further detailed description on the subject the buyer should go through the relevant government orders on the subject.
Main Article There is no ceiling on the number of immovable properties acquired or sold in India by NRIs and PIOs. However, NRIs/PIOs belonging to China, Bangladesh, Nepal, Afghanistan, Pakistan, Bhutan, Sri Lanka and Iran require a prior approval of the Reserve Bank of India for buying Immovable properties in India. It is mandatory to file a declaration of the acquired property with the Reserve Bank of India within ninety days of acquisition of property, on IPI 7, which is the prescribed form. The Reserve Bank of India has issued IPI Forms for fresh acquisition and holding of Immovable properties in India by residents and Non Residents. Non Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Foreign Nationals of non-Indian Origin (Foreigners) can acquire Immovable Property as per the laws and legislations laid down by the Central Government.
Immovable Property Acquisition by NRIs and PIOs NRIs and PIOs can acquire Immovable Property (either Residential or Commercial) in India by way of purchase, gift, inheritance, or share of joint property received upon partition of family/property, etc. as per the guidelines laid by the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000.
Acquisition by way of Purchase Acquisition by way of Gift Acquisition by way of Inheritance
Acquisition by way of Purchase The Reserve Bank of India (RBI) has permitted the following categories of NRIs/PIOs to buy property (immovable, other than agricultural land, plantation or farm-house property) by way of purchase, provided the payment is made out of Foreign Exchange Inward Remittance or any Non Resident Bank Account in India, i.e., (Non Resident External (NR(E)), Foreign Currency Non Resident Account (FCNR(B))
or Ordinary Non Resident Rupee Account a/c (NRO) in connection with acquisition of immovable properties in India:
A Non Resident who is a citizen of India A Non Resident who is a Person of Indian Origin (PIO) A Non Resident who has established in India a branch office or other place of business (excluding a liaison) office
There are no restrictions on the number of residential/commercial properties that can be bought.
Acquisition by way of Gift General permission is granted to acquire any immovable property (other than agricultural land, plantation or farmhouse property) by way of gift from a person (donor) who is:
A Person Resident in India, or A Person Resident outside India (NRI) who is an Indian citizen or foreign citizen of Indian origin.
Provided that applicable Gift Tax if any has been paid at the time the immovable property is being gifted.
Acquisition by way of Inheritance General permission is granted for inheritance of immovable property including agricultural land, plantation or farm-house property from: A Person Resident in India, or A Person Resident outside India who may be an Indian citizen or Foreign Citizen of Indian Origin provided such person had acquired the said property in accordance with the provisions of Foreign Exchange Law in force at the time of acquisition, i.e., FERA, 1973 or FEMA 1999. Hence, agricultural land, plantation or farmhouse property can be acquired by way of inheritance only.
Resource Box For more information on properties in India and buy property visit us at: www.deal4realestate.com