Under the general permission available, the following categories can freely purchase immovable property in India:

1. Non-Resident Indian (NRI)- that is a citizen of India resident outside India

2. Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

1. at any time, held Indian passport, or

2. . who or either of whose father or grandfather was a citizen of India by virtue of the Constitutionof India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India

Since general permission is not available to NRI / PIO to acquire agricultural land/ plantation property / farm house in India, such proposalswill require specific of Reserve Bank and the proposals are considered in consultation with the Government of India approval.

1. Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from
1. a person resident in India or
2. an NRI or
3. a PIO.

However,the property can only be commercial or residential. Agricultural land / plantation property / farm India.

2. A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in Indiathrough gift.

1. Under the general permission available, the following categories can freely purchase immovable property in India:
1. Non-Resident Indian (NRI)- that is a citizen of India resident outside India
2. Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who 1. at any time, held Indian passport, or
2. who or either of whose father or grandfather was a citizen of India by virtue of the Constitutionof India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercia property and not for purchase of agricultural land / plantation property / farm house in India.

1. A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from a) a person resident in India.
2. a person resident outside

However, the person from whom the property is inherited should have acquired the same in accordance withthe foreign exchange regulations applicable at that point of time. India Transfer of immovable property in India

1. Transfer by Sale

1. NRI can sell property in India to-
1. a person resident in India or
2. an NRI or
3. a PIO.
2. PIO can sell property in India to
1. a person resident in India.
2. an NRI or
3. a PIO - with the prior approval of Reserve Bank
3. Foreign national of non-Indian origin including a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank to
1. a person resident in India
2. an NRI
3. a PIO

1. NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
2. Foreign national of non-Indian origin resident outside India would need prior approval of Reserve Bank to sell agricultural land/plantation property/ farm house in India
1. Transfer by gift

Yes

1. NRI / PIO may gift residential / commercial property to -
1. person resident in India or
2. an NRI or
3. PIO
2. foreign national of non-Indian origin needs prior approval of Reserve Bank.

1. NRI / PIO can gift but only to a person resident in India who is a citizen of India.
2. foreign national of non-Indian origin needs prior approval of Reserve Bank Transfer through mortgage

1. NRI / PIO can mortgage to:
1. an authorised dealer / housing finance institution in India - without the approval of Reserve Bank.
2. a party abroad - with prior approval of Reserve Bank.
2. A foreign national of non-Indian origin can mortgage only with prior approval of Reserve Bank.
3. A foreign company which has established a Branch Office or other place of business in accordance with FERA / FEMA regulations has general permission to mortgage the property with an authorized dealer in India.

Payment can be made by NRI / PIO out of

1. afunds remitted to India through normal banking channel or
2. funds held in NRE / FCNR (B) / NRO account maintained in India No payment can be made either by traveller's cheque or by foreign currency notes. No payment can be made outside India.

Yes, such loans are subject to the terms and conditions as laid down in Schedules 1 and 2 to Notification No. FEMA 5/2000-RB dated May 3, 2000 as amended from time to time. However, banks cannot grant fresh loans or renew existing loans in excess of Rupees 20 lakh against NRE and FCNR(B) deposits either to the depositors or to third parties [cf. A.P.(DIR Series) Circular No. 29 dated January 31, 2007]. Such loans can be repaid

1. by way of inward remittance through normal banking channel or
2. by debit to his NRE / FCNR (B) / NRO account or
3. out of rental income from such property.
4. by the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower's loan account. Repatriation
1. In case the amount has been received from inward remittance or debit to NRE/FCNR(B)/NRO account for acquiring the property or for repayment of the loan, the principal amount can be repatriated outside India. For this purpose, repatriation outside India means the buying or drawing of foreign exchange from an authorised dealer in India and remitting it outside India through normal banking channels or crediting it to an account denominated in foreign currency or to an account in Indian currency maintained with an authorised dealer from which it can be converted in foreign currency
2. in case the property is acquired out of Rupee resources and/or the loan is repaid by close relatives in India ( as defined in Section 6 of the Companies Act, 1956), the amount can be credited to the NRO account of the NRI/PIO. The amount of capital gains, if any, arising out of sale of the property can also be credited to the NRO account. NRI/PIO are also allowed by the Authorised Dealers to repatriate an amount up to USD 1 million per financial year out of the balance in the NRO account for all bonafide purposes to the satisfaction of the authorised dealers, subject to tax compliance.

Yes, NRI/PIO can avail of housing loan in rupees from an Authorised Dealer or housing finance institution subject to certain terms and conditions. (Please refer to Regulation 8 of Notification No. FEMA 4/2000-RB dated 3.5.2000 and A.P. (DIR) Series Circular No. 95 dated April 26, 2003). Such a loan can be repaid

1. by way of inward remittance through normal banking channel or
2. by debit to his NRE / FCNR (B) / NRO account or
3. out of rental income from such property.
4. by the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower's loan account.

Yes, subject to certain terms and conditions (Please refer to Regulation 8A of Notification No. FEMA 4/2000-RB dated May 3, 2000 and A.P. (DIR Series) Circular No.27 dated October 10, 2003).

Repatriation of sale proceeds of residential / commercial property purchased by NRI / PIO

NRI / PIO may repatriate the sale proceeds of immovable property in India

1. If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels / by debit to NRE / FCNR
2. account The amount to be repatriated should not exceed the amount paid for the property:
1. in foreign exchange received through normal banking channel or
2. by debit to NRE account(foreign currency equivalent, as on the date of payment) or debit to FCNR
3. account. Repatriation of sale proceeds of residential property purchased by NRI / PIO out of foreign exchange is restricted to not more than two such properties. Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount up to USD one million, per financial year, as discussed below.
4. If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million, per financial year, out of thebalances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes to thesatisfaction of the Authorized Dealer bank and subject to tax compliance.

Yes, general permission is available to the NRIs/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India. NRIs/PIO may repatriate an amount not exceeding USD one million, per financial year, on production of documentary evidence in support of acquisition / inheritance of assets, an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.10/2002 dated October 9, 2002. [cf. A. P. (DIR Series) Circular No.56 dated November 26, 2002].

In case of a foreign national, sale proceeds can also be repatriated even if the property is inherited from a person resident outside India. But this is allowed only with prior approval of Reserve Bank. The foreign national has toapproach Reserve Bank with documentary evidence in support of inheritance of the immovable property and the undertaking and the C.A. Certificate as mentioned above.

The general permission for repatriation of sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran and he has to seek specific approval of ReserveBank.

As FEMA specifically permits transactions only in Indian Rupees with citizens of Nepal and Bhutan, the questionof repatriation of the sale proceeds in foreign exchange to Nepal and Bhutan would not arise.

• Provisions for Foreign Embassies / Diplomats / Consulate Generals