Acquisition or transfer of immovable property in India by NRI/PIO

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The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by persons residents outside India. The regulations governing acquisition and transfer of immovable property in India are notified under Notification FEMA No.21/2000-RB of May 3, 2000, as amended from time to time.

A NRI / PIO can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house) in India.

p>A NRI may transfer any immovable property in India to a person resident in India. He may transfer any immovable property (other than agricultural land or plantation property or farm house) to an Indian Citizen resident outside India or a PIO resident outside India

An NRI who has purchased residential / commercial property under general permission is not required to file any documents with the Reserve Bank.

There is a restriction! A PIO can sell the property to another PIO with the prior approval of RBI. One has to apply to RBI, New Delhi (not to any regional offices of RBI) seeking approval. The application can be in a plain paper mentioning the reasons of selling the property to another PIO other than resident Indians. If RBI is convinced with the explanation of the PIO seller, they will grant the permission.

There is no restriction on the number of properties that can be purchased by a NRI/PIO

The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by persons residents outside India. The regulations governing acquisition and transfer of immovable property in India are notified under Notification FEMA No.21/2000-RB of May 3, 2000, as amended from time to time.

There is no restriction on repatriation of funds on sale of property from India. However, applicable taxes to be paid and income tax returns to be filed.