amritanshu

Non-resident Indians (NRI) and persons of Indian origin (PIO) can acquire residential property in India, rent it out, transfer or sell it, if required . They can also take the rental income and capital investment in the property outside India, subject to the foreign exchange regulations.

Under the present relaxed conditions, NRIs can invest in property in India. NRI refers to an Indian citizen who is residing outside India. PIO refers to an individual who at any time held an Indian passport or whose father or grandfather was a citizen of India.

The regulations permit the NRIs and PIOs to acquire immovable property in India other than agricultural land, plantation and farm house.

The NRI/PIO may use his own funds to acquire immovable property. They can also avail of a housing loan from bank for this purpose. The NRI's own funds means money received in India by way of inward remittance from overseas out of income earned overseas, personal savings outside India, funds held in nonresident external (NRE) or non-resident ordinary (NRO) or foreign currency (non-resident ) (FCNR) bank accounts.

The above is an article from todays economic times. Going through it thrilled me with the idea that now i can ask my maternal aunt to settle down in here as she was a bit conscious about investing in India...

Happy reading....
Amritanshu

Shagun

reading your thread i went read the full article and felt great by the governments move. I also came to know that The regulations permit the NRIs and PIOs to acquire immovable property in India other than agricultural land, plantation and farm house.

The NRI/PIO may use his own funds to acquire immovable property. They can also avail of a housing loan from bank for this purpose. The NRI's own funds means money received in India by way of inward remittance from overseas out of income earned overseas, personal savings outside India, funds held in nonresident external (NRE) or non-resident ordinary (NRO) or foreign currency (non-resident ) (FCNR) bank accounts.

Apart from that what i will interest most of the NRIs are that the proceeds can be repatriated provided the amount does not exceed either the amount paid for acquiring the immovable property in foreign exchange received from overseas or the amount paid from the FCNR account, or the foreign currency equivalent of the amount paid from the funds held in NRE account for acquisition of the property. They can remit sale proceeds outside India for up to two such properties without any RBI approval. Remittance for subsequent properties requires RBI's approval.

In case the property is acquired from rupee funds held in India, the remittance depends on the holding period of the property.