TMI BlogMaster Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin (Updated upto March 11, 2015)X X X X Extracts X X X X X X X X Extracts X X X X ..... needed. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (C D Srinivasan) Chief General Manager 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty (other than agricultural land/ plantation property / farm house) in India by way of gift from a person resident in India or a NRI or a PIO. (b) A PIO may acquire any immovable property in India by way of inheritance from a person resident in India or a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force or FEMA regulations, at the time of acquisition of the property. (iii) Transfer of immovable 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section. b. In the event of sale of immovable property other than agricultural land / farm house / plantation property in India by a person resident outside India who is a citizen of India or a person of Indian origin, the Authorised Dealer may allow repatriation 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than lease, not exceeding five years. 8. Purchase of Immovable Property in India by a Foreign National of Non-Indian Origin resident outside India Foreign nationals of non-Indian origin resident outside India are not permitted to acquire 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. 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). Foreign nationals of non-Indian o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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