A person who is a citizen of India, resides outside India, generally NRI can acquire any immovable property in India other than plantation property / agricultural land / farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to:
- A person resident outside India, who is a citizen of India or
- A person of Indian origin, resident outside India or
- A person resident in India.
He may transfer plantation property / agricultural land / farm house acquired by way of inheritance, only to Indian citizens permanently residing in India.For acquisition of property, the payment can be made out of
- Funds received in India through normal banking channels by way of inward remittance from any place of India or
- Funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999 and the regulations made by Reserve Bank Of India from time to time.
It is pertinent to note that such payment cannot be made by foreign currency notes or traveller’s cheque and it can be only in the mode mentioned.
A PIO may acquire any immovable property in India by way of inheritance from any a person resident in India or a person resident outside India who had acquired such property in accordance with the provisions of FEMA regulations at the time of acquisition of the property.
A PIO may transfer any immovable property other than agricultural land / Plantation property / farm house in India.
- By way of sale to a person resident in India.
- By way of gift it to a person resident in India or a Non Resident Indian or a PIO.
A PIO may transfer agricultural land / Plantation property / farm house in India by way of sale or gift it to person resident in India who is a citizen of India.
Repatriation of Sale Proceeds
In the event of sale of immovable property other than agricultural land / farm house / plantation property in India by NRI / PIO, the authorized dealer will allow repatriation of sale proceeds outside India provided;
- 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 FEMA Regulations;
- 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; and
- In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
In the case of sale of immovable property purchased out of Rupee funds, ADs may allow the facility of repatriation of funds out of balances held by NRIs/ PIO in their Non-resident Rupee (NRO) accounts up to US$ 1 million per financial year subject to production of undertaking by remitter and a certificate from the Chartered Accountant in the formats prescribed by the CBDT.