Information For NRIs INVESTORS
Non-Resident Indians and People of Indian Origin with Foreign Passport Holder can purchase residential property in India as they are treated wholly as Indian Citizens and therefore don't require permission to purchase property from the Reserve Bank of India.
A foreign passport holder is always deemed to be of Indian Origin if: 1) he held an Indian Passport at any time or ii) he or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. However, this does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal.
The purchase consideration should be paid either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR accounts maintained with banks in India.
Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another NRI, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
What are the compliance be met by NRIs to purchase residential immovable property in India under the general permission?
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 (Sale Deed) or final payment of purchase consideration along with a certified copy of the documentary evidence for the transaction and a certificate of payment amount by the bank.
What are the Tax compliances of the sale of the property by an NRI? Can the seller take the net amount outside India in foreign currency after tax has been paid?
On the sale of property, there will 30% tax on short term gains if within three years. After three years, i.e. Long Term gain will be taxed at 15%. One can take back the Net amount, after depositing the necessary taxes and charges, in any currency outside India.
You can contact with our Sales Team and look for the property of your interest on our website; www.prosperria.com. We have hoisted some projects that provide information regarding the various options. You can also use the Contact Us page to send us an inquiry.
After short listing the project, you must check all the title documents of the said property to ensure that the title is clear. Also ensure that the Construction plans have been approved by the concerned authorities and that all the necessary Government Approvals have been obtained to build and sell the same.