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| NRI TIPS |
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Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are Indian citizens who stay abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite stay abroad, or |
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Government servants who are posted abroad on duty with the Indian mission and similar other agencies set up abroad by Government of India where the officials draw their salaries out of Government resources, or |
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Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World bank, International Monetary Fund (IMF), World Health Organisation (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP), or |
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Officials of State Governments and public sector undertakings abroad on temporary assignments or posted to their branches or offices abroad. |
| CAN NRI'S AVAILOF HOME LOANS BACK IN INDIA ? |
The Reserve Bank of India has issued certain guidelines for granting loans to Non-Resident Indians by Housing Finance Company. The guidelines are: |
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The loan amount should not exceed 85% of the cost of the dwelling unit. |
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Own contribution, which is the cost of the dwelling unit can be financed, less the loan amount, can be met from direct remittances from abroad through normal banking channels, from the Non-Resident (External) account in India and /or the Non-Resident (Ordinary) account in India. |
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Repayment of the loan, comprising of principal and interest including all charges are to be remitted to HDFC from abroad through normal banking channels, from the Non-Resident (External) account in India and /or the Non-Resident (Ordinary) account in India. |
CAN I BUY IMMOVABLE PROPERTY IN INDIA? |
Acquisition of immovable property
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Acquisition of immovable property by NRI's holding Indian passport:
Non-Resident Indians holding Indian passport do not require prior permission of Reserve Bank of India to buy residential or commercial immovable property in India.
The purchase consideration may be paid either by remittance of funds from abroad through normal banking channels or out of NRE/NRO/FCNR account.
Non-Resident of Indian nationality do not require any permission for acquisition, transfer or disposal by way of gift of immovable property which is not a farmhouse or agricultural land or plantation property. Declaration on form IPI-7 for acquisition of commercial property for carrying on any industrial, commercial or trading activity by their property/partnership firm in India is required to be filed with RBI within 90 days from the date of purchase. |
Acquisition of immovable property by foreign citizens of Indian origin:
Under the general permission to Non-Resident Indians holding foreign passport, the Reserve Bank of India has allowed them to acquire, hold, transfer or dispose of by way of sale or inheritance, immovable properties situated in India.
A foreign citizen shall be deemed to be of Indian origin, if
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he held an Indian passport at any time; or |
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he or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). |
| Acquisition of immovable property by foreign nationals of Non-Indian origin |
Foreign Nationals of Non-Indian origin (whether resident in India or not) are permitted on application to Reserve Bank of India (Form No- IPI 1) to acquire , hold, transfer or dispose of immovable property provided the following conditions are satisfied. |
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the purchase consideration is made out of foreign exchange remitted from abroad in any convertible foreign currency through normal banking channels. |
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the property to be acquired is only for bonafide residential use. |
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the Foreign National of Non-Indian origin will provide an undertaking not to repatriate the sale proceeds at any future date. |
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investment in ready-built house is permitted. |
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investment in vacant plot is not allowed. |
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one unit for residential purposes is allowed. |
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consideration will be made on a case by case basis only. |
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