somspullela

I have purchased a house site in the joint names of self and my wife.i have in addition to the above , had one flat in my sole name. im told NRI 's cannot have not more than 2 properties. now i wish to buy another flat . do i have to buy in the sole name of my wife or can i buy in the joint names .please clarify

hema

I think you are slightly confused about the facts.There is no restriction on the no. of properties that NRIs can purchase in India, but there is a cap on the repatriation of the proceeds from the sale of the properties.

NRIs can repatriate the proceeds of only 2 properties. Also,the amount to be repatriated should not be more than
a) the payment made by the seller’s FCNR account when he purchased the property
b) the foreign currency payment from the seller’s NRE account, when he purchased the property.

In case property is purchased out of rupee funds repatriation can be allowed only from NRO accounts up to USD1 million per calendar year, provided the properties have been held for 10 years or for a total period of 10 years – partly as a property, and partly as a sale proceed held in the NRO account. The remitter has to commit and get it certified in a format prescribed by the Central Board of Direct Taxes.

So go ahead, and buy the apartment of your choice, but keep in mind the repatriation factor!

somspullela

Dear Hema,
thank you very much for having given your advice so quickly.
soms