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Non Resident Indian (NRI):

Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are: Indian citizens who stay abroad for employment or carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad;


Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources;


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)


Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.

Person of Indian Origin (PIO):

A foreign citizen is considered to be a PIO if: i) the person held an Indian Passport at any time or ii) the person or person's father or paternal grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. However this does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal.

Q1. Is there any restriction on the number of properties I can buy in India?

There is no restriction on the number of residential or commercial properties an NRI can own in India. However the law restricts NRIs from purchasing any kind of agricultural land/ plantation property/ farm house in India.

Q2. What are the documents required for buying a property at South Ex or South court?

You will require the following:

  1. Pan Card (Permanent Account Number)
  2. OCI/PIO card (in case of OCI/PIO)
  3. Passport (in case of NRI)
  4. Passport size photographs
  5. Address proof

Q3. If I plan to rent or sell my property in India, what is the tax treatment for the income generated from these activities?

Tax is applicable on income that is accrued from:
- Rent, if the house is let out
- Annual value of the house, if it is not the only residential property owned by this person in India
- Any short term or long term capital gains stemming from the sale of the house However, no tax is levied for simply acquiring a property in India.

Q4. Do I need to take consent from the RBI prior to purchasing a property in India?

No, an NRI does not require consent to buy any immovable property other than agricultural/plantation property.

Q5. How do I make payment for purchase of residential/commercial property in India?

There are two options:
a) Funds remitted to India through normal banking channels
b) Funds held in NRE/FCNR (B)/NRO account maintained in India

Q6. Can the proceeds from renting or selling the property be remitted to another country?

You can repatriate the rental income after paying the necessary tax applicable to the income generated. There are certain rules governing the repatriation of income generated from the sale of a property in India-

- The amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or (b) 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. In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. Authorized dealers can allow remittance up to USD 1 million for any purpose, per calendar year from balances in NRO accounts subject to payment of applicable taxes.

- If the property was acquired out of Rupee sources, NRI/PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance. The NRI/PIO may use this facility to remit capital gains, where the acquisition of the subject property was made by funds sourced by remittance through normal banking channels/by debit to NRE/FCNR(B) account.

Q7. Can I gift my residential/commercial property?

Yes you can gift the property to:

(i) person resident in India or
(ii) an NRI or
(iii) PIO.

Q8. What are the guidelines for NRI/PIOs to obtain loans for purchasing a residential/commercial property in India?

(i) The loan amount should not be more than 85% of the cost of the housing unit.
(ii) Own contribution, which is the cost of housing unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India
(iii) Reimbursement of the loan, comprising of the principal and interest including all the charges should be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India

Q9. Can authorized dealers grant loans to NRIs?

Yes, but these dealers can grant loans to NRIs for acquisition of house/flat for residential/self-occupation purpose. However, repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts.

What are the rules governing obtainment of housing loans by an NRI/PIO/OCI?

(i) The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person residing in India.

(ii) The loan amount shall not be credited to Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident non-repatriable (NRNR) account of the borrower.

(iii) The loan shall be fully secured by equitable mortgage by deposit of title deal of the property proposed to be acquired, and if necessary, also be lien on the borrower’s other assets in India.

(iv) The instalment of loan, interest and other charges, if any, shall be paid by the borrower by remittances from outside India through normal banking channels or out of funds in his Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident Non-repatriable (NRNR)/Non-resident Ordinary (NRO)/non-resident Special Rupee (NRSR) account in India, or out of rental income derived from renting out the property acquired by utilization of the loan or by any relative of the borrower in India by crediting the borrower’s loan account through the bank account of such relative (The word ‘relative’ means ‘relative’ as defined in section 6 of the Companies Act, 1956.)

(v) The rate of interest on the loan shall conform to the directives issued by the Reserve Bank of India or, as the case may be, the National Housing Bank.

Q11. What are the key points that I should keep in mind before I invest in real-estate in India?

We suggest you to assess any property that you plan to buy on the following factors:

- Location- ease of transportation, connectivity, presence of schools, hospitals, restaurants etc.
- Quoted area of flat- Carpet, Built-up and Super-Built Up area
- Quality of Construction
- Car parking Space
- Water supply, electricity and other utilities
- Different costs involved- price, stamp duty, registration charges, transfer fees, cost of utilities, monthly outgoings and society charges
- Potential for resale or renting out of the property
- Distinct infrastructural of location based advantages of the property

Q12. Will I receive any assistance with the legal and paperwork from Sun India Developers when I buy a property with them?

Yes, Sun India Developers will ensure that you get all your clearances in a hassle-free manner and that we accompany you at each step of your buying or selling decision.