UNITED WE STAND ...
Your projects look interesting!
FREQUENTLY ASKED QUESTIONS
Q. WHO IS AN NRI?
A person residing outside India who is a citizen of India or a person outside India who is of Indian origin is an NRI. The definition of Person resident outside India is defined under section 2(w) of Foreign Exchange Management Act, 1999 as "a person who is not resident in India"
A person shall be deemed to be a person not resident in India in the following cases:
- - When the person stays in India for less than or up to 182 days during the preceding financial year
- - When a person who has gone out of India or who stays outside India, in either case:
For or on taking up employment outside India,OR
For carrying on outside India a business or vocation outside India,OR
For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period
The definition of ‘Person of Indian Origin’ is defined under section 2 (b) of Foreign Exchange Management (borrowing and lending in rupees) Regulations, 2000 and under section 2 (xii) of Foreign Exchange Management (Deposit) Regulations, 2000 as given under:-
Person of Indian Origin’ means a citizen of any country other than Bangladesh or Pakistan, if
He at any time held an Indian passport; or
He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b)”
Person of Indian Origin (PIO) for the purpose of acquiring immovable property in India as given under:- “Person of Indian origin’ means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
At any time, held an Indian passport; or
Who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)
NRIs/OCB’s are granted the following facilities: Maintenance of bank accounts in India Investments in securities/shares of, and deposits with, Indian firms/companies Investments in immovable properties in India
Under the general permission available, the following categories can freely purchase immovable property in India:
Non-Resident Indian (NRI) – that is a citizen of India resident outside India
Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan),
who At any time, held Indian passport, or
Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).The general permission, however, covers only purchase of residential and commercial property
Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration
The Reserve Bank has granted some general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to NRI nationals for acquisition of a NRI house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts
He documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like copy of the passport and a copy of the works contract, etc. and of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India.
Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the Home Finance Company would need a ‘representative’ ‘in lieu of’ the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children/ close relatives or friends
Since general permission is not available to NRI/PIO to acquire agricultural land/plantation property/farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in In consultation with the Government of India
An eros argumentum vel, elit diceret duo eu, quo et aliquid ornatus delicatissimi. Cu nam tale ferri utroque, eu habemus albucius mel, cu vidit possit ornatus eum. Eu ius postulant salutatus definitionem, explicari. Graeci viderer qui ut, at habeo facer solet usu. Pri choro pertinax indoctum ne, ad partiendo persecuti forensibus est.