TMI BlogMaster Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non- Indian Origin.X X X X Extracts X X X X X X X X Extracts X X X X ..... ef General Manager-in-Charge INDEX 1 Introduction 2 Acquisition and Transfer of Immovable Property in India A Non- Resident Indian (NRI) B Person of Indian Origin (PIO) 3 Acquisition of immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals 4 Acquisition of immovable property by person resident outside India for carrying on a permitted activity 5 Repatriation of sale proceeds of immovable property 6 Refund of purchase consideration 7 Prior permission to the citizens of certain countries for acquisition or transfer of immovable property in India 8 Purchase of Immovable Property in India by a Foreign National of Non- Indian Origin resident outside India Annex-1 Press Release of Government of India Annex-2 Form IPI APPENDIX List of notifications / A.P.(DIR Series) 1. Introduction The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame regulations to prohibit, res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovable property A PIO can transfer any immovable property in India (other than agricultural land / farm house / plantation property) by way of sale to a person resident in India. He may transfer agricultural land / farm house / plantation property in India, by way of gift or sale to a person resident in India, who is a citizen of India. He may also transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India, who is a citizen of India or to a Person of Indian Origin resident outside India. iv) Payment for Acquisition of Immovable Property in India A PIO can make payment for acquisition of immovable property in India (other than agricultural land / farm house / plantation property): By way of purchase out of funds received by inward remittance through normal banking channels or by debit to his NRE / FCNR(B) / NRO account. Such payments cannot be made either by traveller s cheque or by foreign currency notes or by other mode other than those specifically mentioned above. (v) A PIO who has purchased residential / commercial property under the general permission, is not required t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the sale proceeds outside India, provided the following conditions are satisfied, namely: (i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations; (ii) the amount to be repatriated does not exceed: the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or the amount paid out of funds held in Foreign Currency Non-Resident Account, or the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; and (iii) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. (B) Immovable property acquired by way of inheritance/ legacy/ out of Rupee funds A Non-Resident Indian (NRI) / Person of Indian Origin (PIO) may remit an amount, not exceeding US $ 1,000,000 (US Dollar One million only) per financial year out of the balances held in NRO accounts / sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, they can acquire or transfer immovable property in India, on lease, not exceeding five years without the prior permission of the Reserve Bank. ii. Foreign Nationals of non-Indian origin, other than a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, can acquire immovable property in India on becoming resident in India in terms of Section 2(v) of the Foreign Exchange Management Act, 1999 . In this connection, he has to satisfy the condition of period of stay. The type of visa granted should clearly indicate the intention to stay in India for an uncertain period to determine his residential status in terms of section 2(v) FEMA, 1999 . (Press Release dated February 1, 2009 issued by Government of India is enclosed as Annex-1). iii. Foreign nationals of non-Indian origin who have acquired immovable property in India by way of inheritance with the specific approval of the Reserve Bank or have purchased the immovable property with the specific approval of the Reserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Indian visa granted to him to clearly indicate the intention to stay in India for an uncertain period. In this regard, to be eligible, the intention to stay has to be unambiguously established with supporting documentation including visa. As per the provisions contained in Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulation 21/2000 ( Notification No. 21/2000-RB dated the 3rd May, 2000), an Indian citizen resident outside India and a Person of Indian Origin resident outside India may acquire immovable property in India other than agricultural land, plantation or a farm house. It has come to the notice of the Central Government that foreign nationals are buying immovable property illegally in some parts of the country, particularly in Goa, which has raised concerns. Many organisations and social groups have also made representations to the Central Government expressing their serious concerns in this regard. It has also been observed that foreign nationals coming to India and staying beyond 182 days on a tourist or other visa meant for a certain period are illegally acquiring immovable property in India in violation of the extant rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Designation:--------------------- APPENDIX List of notifications / A.P.(DIR Series) circulars which have been consolidated in this Master Circular Sl. No. Notification / Circular Date 1. FEMA 21/2000-RB May 3, 2000 2. FEMA 62/2002-RB May 13, 2002 3. FEMA 65/2002-RB June 29, 2002 4. FEMA 64/2002-RB June 29, 2002 5. FEMA 93/2003-RB June 9, 2003 6. FEMA 146/2006-RB February 10, 2006 7. FEMA 200/2009-RB October 5, 2009 1. A.P.(DIR Series) Circular No.1 July 2, 2002 2. A.P.(DIR Series) Circular No.5 July 15, 2002 3. A.P.(DIR Series) Circular No.19 September 12, 2002 4. A.P.(DIR Series) Circular No.35 November 1, 2002 5. A.P.(DIR Series) Circular No.46 November 12, 2002 6. A.P.(DIR Series) Circular No.27 September 28, 2002 7. A.P.(DIR Series) Circular No.56 November 26, 2002 8. A.P.(DIR ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
