Property rules for NRIs in India Leaving your country for opportunities abroad does not end your ties with the country and family living there. NRIs and PIOs often have to deal with property matters in India. Here are some pointers: You must be aware of the Foreign Exchange Management Act. If you owned, possessed or acquired property while residing in India before you acquired ’NRI/PIO status’ you are permitted to deal with this property in any manner you like. You could sell it, gift it or transfer it in any way you wish. If you inherit property from a resident of India, the law permits you to hold or dispose the property in any manner you choose. You can inherit property from a person residing outside India. However, the person from whom such property is inherited should have acquired it according to the foreign exchange laws at the time of acquisition. You can acquire property other than a plantation, agricultural property or farmhouse in India. If you already hold such property, it can be sold or gifted to any Indian citizen residing in India. You can repatriate funds received by selling property held in India. The total limit is one million U.S. dollars per financial year including sending back the money held in NRO accounts. You can gift property held in India to any resident in India or other NRI/PIO. You can receive gifts of property from residents, NRIs and PIOs. How about arranging for funds to purchase property? An inward remittance or funds from the NRE/FCNR or NRO accounts are permitted. Traveler’s checks and foreign currency notes cannot be used, and all payments have to be made in India only. The real estate boom in India has increased NRI activity in property markets. Most developers may be able to inform you of property-related laws for NRIs and PIOs. However, finding a consultant might be a good idea. Source: window2india
Posted on: Mon, 19 Aug 2013 10:26:35 +0000
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