Under the general permission granted by the Reserve Bank of India (RBI), every NRI being a citizen of India or a 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 can freely purchase immovable property in India. The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land/plantation property/farm house in India.

Yes, NRI can buy properties and there is no limit on the number of residential or commercial properties that an NRI can purchase in India. There are exceptions to that clause that NRI however cannot buy agricultural, plantation land or a farm house in India and he cannot acquire such property as a compliment. There are however no restrictions on inheriting such property.

There are no limits on the number of residential properties that may be bought by an NRI. However, repatriation (the process of converting a foreign currency into the currency of one's own country) is allowed only in respect of two such properties.

Yes, in fact experts recommend that you give a PoA to a person residing in India so that he or she may complete formalities such as registration, possession, execution of agreement of sale etc. A PoA can be given to execute all contracts, deeds, mortgages, lease, sell and all matters relating to managing the property. However, at any given time, it would be better to give a specific power of attorney to any person, restricted only to a single action such as only purchase or only for lease. The power of attorney should be executed on a stamp paper or as per the requirement of the country where the PoA is executed. You must then get the PoA attested by any authorized official of the Indian Embassy/Consulate/Trade commissioner in that country.

Some of the factors to consider while purchasing residential property are transport, schools, hospitals, market, business district, entertainment centers, hotels, restaurants, pollution levels, etc. Quoted area of the flat, i.e., carpet, built up area and super built up area Car parking space Quality of construction Reputation of the builder or seller Sufficient water and electric supply, other utilities Cost components: price, stamp duty, registration charges, transfer fees, monthly outgoings and society charges, costs of utilities Potential for resale or renting out of the property Any other distinguishing features or advantages of the property.

Keep in mind the following things while buying a residential property: • Market Trends about prevalent rates of property in the vicinity and last known transactions • Ask for photocopies of the all deeds of title related to the property to be purchased. • Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. • Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property. • The title of the Vendor to the property must be clear and marketable. Check for approved layout plan and approved building plan with number of floors Clearance from municipality, electricity, water, pollution and lift authorities • Check the building bye-laws in that area to verify any issue with setback, side setback, height, etc. Confirm transfer fees, stamp duty and registration charges to be paid on purchase of the property as well as outgoings to be paid for the property, i.e., property tax, water and electricity charges, society charges and maintenance charges.

No, NRI's do not require permission to buy any immovable property in India other than agricultural/plantation property or a farmhouse.

They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.

Yes, Reserve Bank has granted general permission for sale of such property. However whether the property is purchased by another foreign citizen of Indian Origin, funds towards the purchase consideration should either be remitted to India or paid out of balance in NRE/FCNR accounts.

Yes. Reserve Bank has granted general permission to foreign citizen of Indian Origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian Citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from: A person resident in India or An NRI or A PIO. However, the property can only be commercial or residential. Agricultural land/plantation property/farm house in India cannot be acquired by way of gift.

Yes. An NRI/PIO can freely acquire any immovable property by way of gifts of inheritance either from a person resident in India or an NRI/PIO. However, agricultural land/plantation property/farm house in India cannot be acquired by way of gift. The same can be received under in heritance.

Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizen of Indian Origin provided the purchase consideration is met either out of inward remittance 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.

Yes.

It is not necessary to grant POA to the developer. However not granting the POA may lead to time delays and associated problems involved with the mailing of all documents to your foreign residence. Granting POA can also be useful in case of home loans.

There are no restrictions on the numbers of Residential/Commercial Properties (other than agricultural land/farm house/plantation) that can be purchased.

Currently there is no lock in period.

There are two options: a) Funds remitted to India through normal banking channels b) Funds held in NRE/FCNR (B)/NRO account maintained in India

Yes, NRI/PIO/OCI or Foreign National can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank for inheriting immovable property in India. Thousands of Non-Resident Indians (NRIs) fly frequently to India, the home of their hearts. Many of them yearn to have a land or house of their own in their native land, either for future settlement of even to share rental gains of just property appreciation. There are those who have come to acquire properties either by way of gifts or inheritance and desire to sell them and repatriate the proceeds overseas. Today’s article deals with FAQs on the liberalized regulations in this regard.

One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items. If you are an NRI or a Property Buyer/Investor you need to understand your Investment Horizons in Real Estate pretty well. Term of Investment – This is important as you need to hold on for at least 1 to 3 Years for a decent capital appreciation and if you sell your property within 3 years you are in for a short term capital gains which is at par with the Income Tax rules of nearly 30 to 35% as applicable. It is better to stay invested for 3 years and then plan the next investments with Capital Gains etc.

Yes. However, Reserve Bank has granted general permission to foreign citizens of Indian origin whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are therefore, not required to obtain separate permission of Reserve Bank.

Foreign citizens of Non-Indian origin (whether resident in India or not) and foreign companies including trusts, societies and associations incorporated/ registered abroad will be permitted by Reserve Bank, on application, to acquire immovable property in India, provided the following conditions are satisfied. The property to be purchased is for residential use only. The consideration for purchase of the property is met out of foreign exchange remitted from abroad in any convertible currency through normal banking channels Income accruing by way of rent from the property purchased, or the sale proceeds of such property/income arising out of investment of such sale proceeds at any future date shall be credited only to the Ordinary Non-resident Rupee (NRO) account of the non-resident purchaser. Under the general permission available, the following categories can freely purchase immovable property in India: i) Non-Resident Indian (NRI) – that is a citizen of India resident outside India ii) 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 1. At any time, held Indian passport, or 2. 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

The interest income earned on NRO attracts Income Tax deduction at source in India, whereas interest income in NRE is tax free in India. • Balances held in NRE Accounts can be fully repatriated abroad, whereas funds in NRO Account are partially repatriable (up to USD 1 million per financial year), subject to payment of taxes. • Funds remitted from abroad or local funds which can otherwise be remitted abroad to the Account holder can be credited to NRE accounts. Funds which do not qualify, under the Exchange Control Regulations, for remittance outside India are required to be credited to NRO Accounts.

Transfer from NRE to NRO: Transfer of funds from an NRE to an NRO Account is permitted. Once you transfer funds from NRE to NRO Account, the funds become conditionally-repatriable (up to USD one million or equivalent per financial year), subject to payment of taxes, as applicable. Transfer from NRO to NRE: Transfer of funds from NRO to NRE Account is permitted within the overall ceiling of USD one million or equivalent per financial year (April – March), subject to payment of taxes, as applicable. You need to submit Form 15CA (online application form) and 15CB (Chartered Accountant Application) to your Branch for transferring funds.

Yes, the funds can be transferred between NRE and FCNR (B) accounts of an Account holder and also between NRE and FCNR (B) Accounts of two different NRIs, i.e., the funds lying in NRE and FCNR (B) Accounts of an NRI can be freely transferred to NRE and FCNR (B) Account of any other NRI.

Investment in Immovable Property • NRI / PIO may acquire/transfer immovable property in India other than agricultural land/ plantation property or a farm house out of repatriable and / or non-repatriable funds. • The payment of purchase price, if any, should be made out of o funds received in India through normal banking channels by way of inward remittance from any place outside India or o funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank • No payment of purchase price for acquisition of immovable property shall be made either by traveller’s cheque or by foreign currency notes or by other mode other than those specifically permitted as above • NRI may acquire any immovable property in India other than agricultural land / farm house plantation property, by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India • NRI may acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India • An NRI may transfer any immovable property in India to a person resident in India • NRI may transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India. In respect of such investments, NRIs are eligible to repatriate: • The sale proceeds of immovable property in India if the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels / by debit to NRE / FCNR (B) account • The amount to be repatriated should not exceed the amount paid for the property in foreign exchange received through normal banking channel or by debit to NRE account (foreign currency equivalent, as on the date of payment) or debit to FCNR (B) account. • In the event of sale of immovable property, other than agricultural land / farm house / plantation property in India, by a person resident outside India who is a citizen of India / PIO, the repatriation of sale proceeds is restricted to not more than two residential properties subject to certain conditions • If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million per financial year out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes subject to tax compliance. •

Yes, a person can hold such property after becoming an NRI and he/she need not take separate permission of the RBI

No. 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 RBI and the proposals are considered in consultation with the Government of India

No. An NRI/PIO who has purchased residential/commercial property under general permission, is not required to file any documents with the RBI.

The payment can be made by NRI/PIO out of: Funds remitted to India through normal banking channel; or funds held in NRE/FCNR (B)/NRO account maintained in India No payment can be made either by traveller's cheque or by foreign currency notes. Further, no payment can be made outside India.

The amount of refund, together with interest (net of income tax) can be credited to NRE account. This is subject to condition that the original payment was made by way of inward remittance or by debit to NRE/FCNR (B) account.

No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. In such cases, there is no requirement of taking any permission of or reporting to RBI.

A foreign company which has established a branch office or other place of business in India, in accordance with FERA/FEMA regulations, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with RBI within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for other borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of RBI. Further, acquisition of immovable property by entities incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan who have established branch offices in India would require prior approval of RBI to acquire such immovable property. A foreign company having a Liaison Office in India, cannot acquire immovable property. A liaison office is permitted to take on lease the property for a period not exceeding 5 years.

The automatic route has simplified much of the cumbersome investment process. Approval from the Reserve Bank is not required anymore and there is also no need to go to the Foreign Investment Promotion Board. The easing of paper work and relaxation of formalities has given a boost to overseas investor confidence for investing in India.

Any NRI before investing in the Indian real estate should also focus on the particular segment that he plans to invest in like residential, retail or office space. Consulting legal firms and real estate firms providing professional NRI services can be very useful.

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorized dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied: The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999; NRIs/PIOs can effect remittance of sale proceeds of immovable property in India irrespective of the period for which the property was held. The sale proceeds allowed to be repatriated should, however, not exceed the foreign exchange brought in to acquire the said property. In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties, if the property was purchased from funds held in NRE Account. The amount sought to be repatriated abroad should not exceed the amount paid for acquisition of the immovable property in the foreign exchange received through normal banking channels or out of funds held in FCNR or NRE Account. In case of investment out of NRE Account the amount to be calculated as foreign currency is equivalent value as on the date of payment for acquisition of the said property. Repayment of Housing Loan of NRI / PIOs by close relatives of the borrower in India Housing Loan in rupees availed of by NRIs/ PIOs from ADs / Housing Financial Institutions in India can be repaid by the close relatives in India of the borrower.

The ’Agreement to Sell’ in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc. In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property.

Yes. General permission has been granted by Reserve Bank to non-resident persons (foreign citizens) of Indian origin to transfer by way of gift immovable property held by them in India to relatives and charitable trusts/organizations subject to the condition that the provisions of any other law, including Foreign Contribution (Regulation) Act, 1976, as applicable, are duly complied with.

Yes. The RBI has granted general permission to foreign citizen of Indian origin to acquire or dispose of properties (up to two houses) by way of gift from or to a relative who may be an Indian Citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

Yes

Yes, sale proceeds of not more than two residential properties can be repatriated.

The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorised Dealer and payment of applicable taxes.

Applications for repatriation of sale proceeds of property in India are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount on the NRI property, whichever is later.

An NRI/PIO can gift his residential/commercial property in India to person resident in India, NRI or PIO.

NRI / PIO may sell agricultural land /plantation property/farm house to a person resident citizen of India.

The owner of the property is liable to pay tax on income from house property. The term "owner" also include deemed owner. One house property self occupied by the owner for residential purpose, then there will be no income from house property. If the building or part thereof is used by the owner himself for the purpose of his own business or profession then there will be no income from house property in respect of such building provided the profit of such business or profession is chargeable to income tax separately. Whenever a person who owns a house property in one city is transferred to another city, it has been specifically provided that the annual value of such a property would be taken to be nil subject to the fulfillment of following conditions: • The assessee must own only one house property which is meant for his own residence. • He cannot occupy that house property because of his employment, business, profession, etc away from the place. • The property is not actually let out or any benefit is derived. • No other deduction will be available to the assessee.

Capital gains arising on transfer of a residential house, comprising buildings or land appurtenant thereto, is exempt if the amount of capital gains is utilized in acquiring another residential house, either by purchase or by construction. The conditions required to be fulfilled to claim exception are: • The capital asset being transferred is a residential house property the income of which is chargeable under the head "Income from house property" • The house property is a long term asset i.e. held by the owner for more than 3 years. • The house property has been transferred by individual or HUF. • The tax payer purchases or constructs a new residential house within the specified time.

Capital gains arising on transfer of a residential house, comprising buildings or land appurtenant thereto, is exempt if the amount of capital gains is utilized in acquiring another residential house, either by purchase or by construction. The conditions required to be fulfilled to claim exception are: • The capital asset being transferred is a residential house property the income of which is chargeable under the head "Income from house property" • The house property is a long term asset i.e. held by the owner for more than 3 years. • The house property has been transferred by individual or HUF. • The tax payer purchases or constructs a new residential house within the specified time.

In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. NRI/PIO are allowed to repatriate an amount up to USD 1 Million per annum.

Yes. NRI /PIO/ Foreign National can sell property in India to a person resident in India or to an NRI or a PIO.

Yes. NRI PIO may gift his property. Yes, NRIs or PIOs can acquire property by way of gift. Agricultural land or plantation or farm house in India cannot be acquired by way of gift.

An NRI/PIO can repatriate the sale proceeds of immovable property in India if the property was acquired out of foreign exchange sources, ie, remitted through normal banking channels or by debit to NRE/FCNR account, to the extent of the purchase consideration paid for the property. Repatriation of sale proceeds of residential property purchased by NRI/PIO out of foreign exchange is restricted to not more than two such properties. The capital gains can be credited to the NRO account from where the NRI/PIO may repatriate an amount up to $ 1 million per financial year as discussed below.

The sale proceeds credited to an NRO account, in respect of an immovable property purchased out of immovable property purchased out of rupee resources or acquired through gift or inheritance, the NRI/PIO can repatriate up to $ 1 million per financial year (April-March), which would also include sale proceeds of assets acquired by way of inheritance or settlement. Such repatriation is permitted for all bonafide purposes subject to the satisfaction of authorized bank maintaining the NRO account on payment of applicable taxes. Property Documents Required for Sale • Original title deeds tracing the title of the property for a minimum period of the last 13 years • Encumbrance Certificate for the last 13 years • Agreement of sale /construction, if any • Receipts for payments made for purchase of the dwelling unit • Approved plan / license • ULC clearance /conversion order etc • Receipts for having invested the margin money through normal banking channels from the Non-Resident (External) account in India and / or the Non-Resident (Ordinary) account in India • Latest tax paid receipt • Allotment letter from the co-operative society / association of apartment owners • Agreement for sale / sale deed /detailed cost estimate from Architect / Engineer for property to be purchased / constructed /extended / improved • Copy of approved drawings of proposed construction/purchase/extension

Yes. The Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Yes. Repatriation of original NRI investments in respect of Indian properties purchased by NRIs on or after 26 May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the NRI property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8. In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorized dealer may allow repatriation of the sale proceeds outside India, provided all the conditions are satisfied. In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property

Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income can be deposited in NRE/NRO account and are eligible for repatriation

Yes. An NRI/PIO can rent out the property without the approval of RBI. Rent received can be credited to NRO/NRE account or remitted abroad. Powers have been delegated to authorized banks to allow repatriation of current income like rent, dividend, pension, interest, etc, of an NRI/PIO based on an appropriate certification by a chartered accountant, certifying that the amount proposed to be remitted is eligible for remittance and that application taxes have been paid or provided for.

NRI/PIOs can without restraint rent out their immovable property, whether purchase through application of forex or otherwise, without seeking any consent from the RBI. The rental income being a current account transaction is repatriable outside India, only if proper tax is paid or provided for.

The RBI has granted general permission to NRI's and foreign citizens of Indian origin, to let out their residential properties acquired for their bonafied residential purpose but which on account of their residence abroad, are not required for their immediate residential purpose. The rental income cannot be repatriated. Thus rental income must be credited to the NRO account / resident accounts in India.

Yes, Reserve Bank has granted general permission for letting out any immovable properties in India. The rental income or proceeds of any investment of such in-come are eligible for repatriation.

The following documents are required along with the application form: Photocopy of the labour contract duly countersigned by your employer (translated to English for non-English documents). Latest salary certificate (in English) specifying the following: Name (as it appears in the passport). Date of joining. Passport Number. Designation. Perquisites and salary. Photocopy of labour card/identity card. Photocopy of valid resident visa stamped on the passport. Photocopy of monthly statement of local bank account.

Yes, where an authorised dealer in India has granted loan to a non-resident Indian such loans may also be repaid by resident close relative (relative as defined in Section 6 of the Companies Act, 1956), of the Non-Resident Indian by crediting the borrower's loan account through the bank account of such relative.

Yes, where an authorised dealer in India has granted loan to a non-resident Indian such loans may also be repaid by resident close relative (relative as defined in Section 6 of the Companies Act, 1956), of the Non-Resident Indian by crediting the borrower's loan account through the bank account of such relative.

Yes, the RBI allows NRIs to take home loans for buying property in India. You can also take a loan for repairs and renovations of your home. You can pay EMI’s in any one of the following ways: • By remitting the money from your foreign bank account through regular banking channels. • By issuing post dated cheques or Electronic Clearance Service (ECS) from your NRE, NRO or FCNR account. • Out of the rental income that this property earns. • Cheques issued from your local relative’s bank account.

Reserve Bank has granted general permission to certain financial institutions providing housing finance and authorized dealers to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittance or out of funds held in the investor’s NRE/FCNR/NRO accounts.

The eligibility for NRI’s obtaining home loan includes: 1) Age: a) The minimum age of the NRI applicant should be 21 years. b) If you are a salaried applicant, the maximum age allowed is 60 years. c) If you are a self employed person, the maximum age allowed is 65 years. 2) Qualification: The loan applicant should be a graduate. 3) Passport: The loan seeker should have a valid passport. 4) Payment terms: The NRI has to pay EMI through his NRE/NRO accounts. 5) Monthly income: The applicant should have a monthly income of $ 2000.

There are guidelines issued by the Reserve Bank of India for grant of housing loans to NRIs. The guidelines are: The loan amount shall not exceed 85% of the cost of the housing unit. Own contribution, which is the cost of housing unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Reimbursement of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special.

Yes. NRI/ PIO can avail Housing Loan in Rupees from an Authorized Dealer or Housing Finance Institution Rupee account [NRSR] in India.

Yes, subject to certain terms and conditions given in Regulation 8A of Notification No. FEMA 4/2000-RB dated May 3, 2000 and A.P. (DIR Series) Circular No. 27 dated October 10, 2003.

An NRI can borrow against the security of immovable property from an authorized dealer subject to following conditions: 1.) The loan should be used for meeting the personal requirements or for borrower's own business purposes; and 2.) Loan should not be used for forbidden activities, namely; 3.) Business of chit fund, or 4.) Agriculture or plantation activities or in real estate business, or construction of farm houses, or 5.) Trading in Transferable Development Rights (TDRs) 6.) The loan amount cannot be remitted outside India, 7.) Repayment of loan shall be made from out of remittances from overseas or by debit to NRE/FCNR/NRO account or out of the sale profits of shares or securities or immovable property against which such loan was granted.

Yes. As per current guidelines of the Reserve Bank of India a Person of Indian Origin holding foreign passports are eligible for loans with Bank.

Yes. You can submit the loan application at our international office or at the offices of our Service Associates. However, disbursement of the loan can be taken by you or your Power of Attorney holder in India only.

You need not be present in India to avail of your Home Loan. In case you are posted aboard at the time of submission of the loan application and disbursement of the loan, you can avail the loan by appointing a Power of Attorney as per respective bank format. Your Power of Attorney holder can apply and carry out the formalities on your behalf.

Yes. It would be desirable to appoint any of your relatives as the Power of Attorney (POA) holder in India. The POA should be a resident of the city where you wish to apply for your Home Loan. The POA should be executed as per the. In case the Co-applicant is not present in India to complete the loan formalities, the Co-applicant should also draw a Power of Attorney favoring any relative in India

Your loan will be disbursed after you have selected your property, applied for your Home Loan, submitted the requisite income and property documents, the property is technically and legally sound and you have paid your Own Contribution towards the purchase of the property. The disbursement would be in Indian Rupees and made at the Bank branch in India, as specified by you. The cheque for the loan amount is drawn in favour of the developer or the seller (in case of a resale property) as the case may be. In case of an under-construction project, Bank disburses the loan amounts proportionate to the stage of construction

When the property is under-construction, Bank disburses the loan amounts proportionate to the stage of construction. In such a case, the amount of interest payable on the disbursed loan amount is called the Pre-EMI interest. You can start paying interest on the portion of the loan disbursed until such time that the project is ready for possession. This interest is called Pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges. You can do so by remittances from abroad through normal banking channels, your Non-Resident (External) Account and/or Non-Resident (Ordinary) Account n India. We also offer a free-of-charge facility to accelerate your loan repayment called ‘Accelerated Repayment Scheme’. This option provides you the flexibility to increase the EMIs every year in proportion to the increase in your income which will result in you repaying the loan much faster. Loans can be extended against security of funds held in NRE Account either to the depositors or third parties without any ceiling subject to usual margin requirements

Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passports subject to certain conditions

One will need a guarantor for a loan mainly for collateral security. The guarantor will have to demonstrate appropriate net worth to cover for the loan. Usually one can have a guarantor in any city where the loan issuer has a branch. Talk to loan issuers they will work something out for NRIs and foreign banks.

According to Reserve Bank guidelines for NRIs The loan amount shall not exceed 85% of the cost of the dwelling unit. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.

Yes. We very well understand that as an NRI you have a different set of needs with respect to your real estate management and investment requirements and we also understand that it needs special set of services to cater to your requirements. The good news from India is that government has allowed 100% repatriation for NRIs.

Yes. The Reserve Bank has enabled certain financial institutions that deal in housing finance to grant housing loans to NRIs, subject to certain conditions.

The loan towards the house for the entire tenure has to be paid by the way of direct remittances through normal banking channels. The payments are done through NRO, NRE, FCNR Account.

The period offered for a home loan is usually 5 years. But some of the financial institutions offer home loan for a period of 7 years which has to be paid through EMIs.

Reserve Bank has granted permission to certain financial institutions providing housing finance etc to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation subject to certain conditions.

Authorized dealers have been granted permission to grant loans up to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. 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 investments' NRE/FCNR accounts.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us. • It is extremely important for you to ensure that the title to the property is clear, marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation, which is likely to adversely affect the title to the property. • We request you to please keep copies of all the documents submitted during the loan processing, as the originals will be in Bank's custody till the full repayment of the loan.

Yes, NRI/PIO can avail of housing loan in rupees from an Authorised Dealer or housing finance institution subject to certain terms and conditions. Such a loan can be repaid: By way of inward remittance through normal banking channel; or By debit to his NRE/FCNR (B)/NRO account; or Out of rental income from such property. By the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower's loan account.

NRI/PIO can mortgage their residential/commercial property to: An institution in India -without the approval of RBI A party abroad - with prior approval of RBI.

Yes, provided the loan has been subsequently repaid by remitting funds from abroad or by debit to NRE/FCNR(B) accounts. Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

Yes, but these dealers can grant loans to NRIs for acquisition of house/flat for residential/self-occupation purpose. However, 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.

(i) The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person residing in India. (ii) The loan amount shall not be credited to Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident non-repatriable (NRNR) account of the borrower. (iii) The loan shall be fully secured by equitable mortgage by deposit of title deal of the property proposed to be acquired, and if necessary, also be lien on the borrower’s other assets in India. (iv) The installment of loan, interest and other charges, if any, shall be paid by the borrower by remittances from outside India through normal banking channels or out of funds in his Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident Non-repatriable (NRNR)/Non-resident Ordinary (NRO)/non-resident Special Rupee (NRSR) account in India, or out of rental income derived from renting out the property acquired by utilization of the loan or by any relative of the borrower in India by crediting the borrower’s loan account through the bank account of such relative (The word ‘relative’ means ‘relative’ as defined in section 6 of the Companies Act, 1956.) (v) The rate of interest on the loan shall conform to the directives issued by the Reserve Bank of India or, as the case may be, the National Housing Bank.

NRIs can avail loan for buying or constructing a new home, extending or improving an existing home or even for buying a plot.

Own contribution is the cost of the dwelling unit financed less the loan amount. The own contribution should be met from direct remittances from abroad through normal banking channels or from the Non-resident (External) account / Non-resident (ordinary) or the Non-resident special rupee account in India.

Typically the security for the loan is first mortgage of the property to be financed, normally, normally by way of deposit of title deeds and / or such other collateral security as may be necessary. In addition interim security may be required, if the property is under construction. Collateral or interim security could be in the form of assignment of life insurance policies, surrender value of which is at least equal to the loan amount, pledge of shades and such other investments.

Yes, normally it is desirable to appoint a Power of Attorney in India to represent his in dealings in India. The Power of Attorney should be executed as per drafts provided by the housing finance company. The Power of Attorney can be given to any person of his choice in India.

To avail housing loans from the banking institutions, you need a guarantor who must have to demonstrate the money or property that will cover the whole amount of loan. The guarantor could be a person resident across India. Usually, the Real Estate Companies have tie ups with various banks and financial institutes to ease the buying process.

Usually, the client will make a complete transfer of money via online in foreign currency through foreign exchange via normal banks or simply the money will be taken through the NTE/FCNR accounts maintained in Indian banks. 10) Does authorizing a person with Power of Attorney in India help the process? It is not mandatory that you have to authorize somebody with power of attorney. However, in order to make the buying process smooth, the developers need to perform several activities such as filling proper documents and others at the right time. You may however make the buying process smooth by authorizing a person with Power of Attorney for specific tasks only.

Obviously, RBI has permitted several housing loan institution to grant the house loans to the NRIs for buying the residential property on finance. However, there are some specific terms and conditions but NRIs can fund the transaction through housing loan depending upon their repayment capacity.

Yes, NRI/PIO can mortgage a residential or commercial property to: (a) An Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank. (b) A party abroad, with the prior approval of the Reserve Bank.

An NRI who is seeking to purchase a property is required to submit following documents: A) Salaried NRI Applicants • A copy of your valid passport and Latest visa. • Employment contract • Identity card • Overseas bank account statement for last six months • Proof of residence in India • Proof of residence in Abroad • Copy of appointment letter from the company employing the applicant • Salary certificate in English, specifying name, date of joining, designation and salary details. • Both domestic (NRE/NRO/FCNR) and international bank statements for the last six months. • If you are not available in India when the application form is submitted, then a General Power of Attorney duly attested by the Indian consulate in your resident country needs to be submitted. If you will be in India then the Power of Attorney can be locally notarized. • A copy of your appointment letter as well as contract. • In case you are employed in the Middle East, you need to submit a copy of your labour card/identity card that is translated in English and countersigned by the respective consulate. • In case you are employed in the merchant navy, you need to submit a copy of your CDC as well as your contract slip with Income details. B) Self-Employed NRI Applicants • Passport copy with valid visa stamp • Brief profile of the applicant and business/ Trade license or equivalent document • 6 months overseas bank account statement and NRE/ NRO account • Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts) C) Property related documents: • Agreement papers of sale/construction • Receipts for payments • Allotment letter from the co-operative society • Latest tax paid receipt

There are guidelines issued by the Reserve Bank of India for grant of housing loans to NRIs. The guidelines are: 1.) The loan amount shall not exceed 85% of the cost of the housing unit. 2.) Own contribution, which is the cost of housing unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Reimbursement of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.

Authorized dealers have been granted permission to grant loans to NRIs for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. 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.

Yes. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower

An NRI can borrow against the security of immovable property from an authorized dealer subject to following conditions: 1.) The loan should be used for meeting the personal requirements or for borrower's own business purposes; and 2.) Loan should not be used for forbidden activities, namely; 3.) Business of chit fund, or 4.) Agriculture or plantation activities or in real estate business, or construction of farm houses, or 5.) Trading in Transferable Development Rights (TDRs) 6.) The loan amount cannot be remitted outside India, 7.) Repayment of loan shall be made from out of remittances from overseas or by debit to NRE/FCNR/NRO account or out of the sale profits of shares or securities or immovable property against which such loan was granted.

The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.

They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid. Note: The users should refer the notifications issued by respective Govt. department / Organisation for the latest rules and modifications.

Under section 24 of the Income Tax Act, the interest on home loan is deductible from the income from house property to the extent of Rs. 1.5 lakh per annum. Further, up to Rs. 1 lakh of principle repayment can be deducted under section 80C (subject to an overall limit of Rs. 1 lakh of that section). This interest can be deducted from rental income. In case of self-occupied property discussed earlier, your rental income will be zero but you can still claim a deduction of interest of up to Rs. 1.5 lakh. In such a case, you would have a loss from house property. The loss can be set off against income from other sources like interest income, capital gains etc. If the loss is not completely exhausted in a particular year, it can be carried forward for 8 years. That is, you can show the loss in your tax returns for the next 8 years and off-set it against other income. But once carried forward, the loss can be set off only against income from house property.

The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.

Rental income earned is taxable in India, and they will have to obtain a PAN and file return of income if they have rented this property. On sale of the property, the profit on sale shall be subject to 9 capital gains. If they have held the property for less than or equal to 3 years after taking actual possession then the gains would be short term capital gains, which are to be included in their total income as tax as per the normal slab rates shall be payable and if the property has been held for more than 3 years then the resultant gain would be long term capital gains subject to 20% tax plus applicable cess.

Tax is applicable on income that is accrued from: - Rent, if the house is let out - Annual value of the house, if it is not the only residential property owned by this person in India - Any short term or long term capital gains stemming from the sale of the house However, no tax is levied for simply acquiring a property in India