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TMI BlogMaster Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian OriginX X X X Extracts X X X X X X X X Extracts X X X X ..... roduction 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, restrict or regulate the acquisition or transfer of immovable property in India by certain persons residents outside India. The regulations governing acquisition and transfer of immovable property in India is notified under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia 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 to file any documents with the Reserve Bank. 3. Acquisition of immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals In terms of Regulation 5A of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations 2000, Foreign Embassy/ Diplomat/ Consulate General, may purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ign 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 maximum 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 / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of inheritance / legacy/ out of Rupee funds. This is subject to production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and a tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the Reserve Bank. In cases of deed of settlement made by either of his par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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). * 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 Bank cannot transfer such property without the prior permission of the Reserve Bank. Annex-2 Form IPI ( See Regulation 4 ) Declaration of immovable property acquired in India by a person resident outside India who has established in India a branch, office or other place of business, excluding a liaison office Instructions: 1. The declaration should be completed in duplicate and submitted directly to the Chief General Manager, Foreign Exchange Department, (Foreign Investment Division), Reserve Bank of India , Central Office , Mumbai - 400001 within 90 days from the date of acquisition of the immovable property. 2. This form is not to be submitted by a person resident outside India who is a citizen of India or a Person of Indian Origin (PIO) acquiring immovable proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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