Who is a Non Resident Indian (NRI)?
According to the Foreign Exchange Management Act (FEMA) of 1999, an Indian Citizen who stays abroad for employment/ business or stays outside the country for an indefinite period of time is considered to be an NRI. (Persons Posted in U.N. organisations and official deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as nonresidents). Non-resident foreign citizens of Indian Origin are treated on par with non- resident Indian citizen (NRIs).
Who is a Person of Indian Origin (PIO)?
Can an NRI/ Foreign national acquire immovable residential property in India?
PIO is a person of Indian origin whose ancestors were born in India and he/she has an Indian ancestry but not an Indian citizenship. As per the FEMA of 1999, a person of Indian origin can avail bank accounts, invest in shares and securities in India. So, he or she
- has had Indian Passport at any time
- himself/herself, parents or grandparents were Indian citizens (of the Constitution of India or Citizenship Act, 1955 (57 of 1955)
- is a spouse of an Indian citizen or a person who held an Indian Passport at any time
- is a spouse of a person who either was a citizen of India or his parents or grandparents were a citizen of India
According to the RBI guide lines, an NRI/PIO can acquire a residential property in India by a way of gift from an Indian, NRI/PIO or purchase it. He or she can even acquire residential property by way of inheritance from a person who is a resident of India as per the Provisions of Section 6(5) of the FEMA, 1999.
Do NRIs/ Foreign citizens of India need to submit any documents with RBI when purchasing immovable residential property in India?
When NRIs/PIOs purchase an immovable residential property under general permission they are not required to file any documents with the Reserve Bank of India.
Are there any restrictions on the number of residential property that an NRI/PIO can purchase?
No, there aren’t any restrictions.
Can an NRI transfer his residential property by way of sale?
An NRI can sell his or her property in India to an Indian resident/ NRI / PIO.