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 ..... ar is being updated from time to time as and when fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (A K Pandey) 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. Purchase of Immovable Property in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss 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, Bhutan, Macau or Hong Kong 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 Bank cannot transfer such property without the prior p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the seller/lessor (b) (c) Amount of purchase price and sources of funds (c) I/ We hereby declare that- (a) the particulars given above are true and correct to the best of my/our knowledge and belief; (b) no portion of the said property has been leased /rented to, or is otherwise being allowed to be used by, any other party Encls: -------------------------------- (Signature of Authorised official) Stamp Place: ------- Date:-------- Name:------------------------------ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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