NRI Corner
The remittance of proceeds in excess of the principle amount of investment is restricted. However, earnings and/or gains can be put in the remitter’s NRO account and subsequently sent outside India, as long as the total amount does not exceed $1 million every financial year.
Rental revenue can be easily repatriated without the need for special approval in India.
A person’s ability to acquire or sell several homes is unrestricted. However, the number of residential properties whose sales earnings can be freely repatriated is limited. While the proceeds of the first two residential properties can be freely repatriated, the revenues of the third and subsequent properties must be put in an NRO account, from which a total of $1 million can be freely remitted each financial year.
Customers would be responsible for any gains or losses on financial transfers. Only the value that is actually received will be credited. Any changes will be carried over to the next payment due date.
The Reserve Bank has given broad authority to select financial institutions and authorised dealers authorised by the National Housing Bank to provide housing loans to non-resident Indian citizens for the purchase of a home or flat for self-occupation, subject to certain criteria. The goal of the loan, the margin money, and the loan amount will be the same as for residents’ housing loans. Loan repayment shall be made from inward remittances or monies retained in the investors’ NRE/FCNR/NRO accounts within a period of not more than 15 years.
An NRI/PIO may acquire a residential property in India using monies transferred to India through standard banking channels or funds maintained in his NRE/FCNR (B)NRO account under the general authorization. If such NRIs have domestic resident accounts, no consideration should be paid from those accounts outside of India.
PAN (Personal Identification Number) card Card for OCI/PIO (in case of OCI/PIO) Obtaining a passport (In case of NRI) Photographs in passport size Proof of address
The RBI has granted NRIs with foreign passports the broad authorization to purchase, keep, transfer, or dispose of immovable assets in India by way of sale or inheritance. This has been approved, as long as the property would be used for the purchaser’s legitimate domestic purposes. NRIs, on the other hand, are unable to acquire agricultural or plantation land. The purchase price is paid out of NRE / FCNR or remitted from money overseas through standard banking procedures. Even if the purchase cost was met out of an NRE / FCNR account, rent income from properties purchased or obtained through inheritance will not be allowed to be transferred overseas. Foreign nationals of Indian heritage, on the other hand, must declare such property.
A Person of Indian Origin (PIO) is a person of Indian ancestry or origin who is a citizen of another nation but not of India. A PIO may have been an Indian citizen who later acquired citizenship in another nation, or may have ancestors who were born in India or other states.
A Non-Resident Indian (NRI) is an Indian citizen who has temporarily relocated to another nation for a period of six months or longer for work, residence, study, or any other reason.