Q.            :Who is a NRI?

Ans.        : ANRI is a person resident outside Indiawho is either a citizen of Indiaor a person of Indian origin. A NRI is an Indian Citizen who has migrated toanother Country. For all official purpose the Government of India considers IndianNational away from Indiafor more than 182 days, in a year.



Q.            : Who is a PIO?

Ans.        : A person of Indian origin means an individual(not being a citizen of Pakistanor Bangladesh or Sri Lanka or Afghanistanor China or Iran or Nepalor Bhutan)who:

 
i) Held an Indian Passport at any time, or

ii) Who or whose father orpaternal grand father was a citizen of India by virtue of the Constitutionof India or the Citizenship Act, 1955.

 
Q.            :What are the types of Property can a NRI/PIO purchase in India?

Ans.        : There are no restrictionson the numbers of Residential/Commercial Properties (other than agriculturalland/farm house/plantation) that can be purchased.


Q.           :Does NRI/PIO require permission of The Reserve Bank to acquire   residential/commercial property in India?

Ans.        : No. All Indian citizens areentitled to buy property in India,irrespective of their residential status.

Q.            :How should the purchase of residential immovable property be paid for byNRI/ PIO under the general permission?

Ans.        : The purchase considerationshould be met either out of inward remittance in foreign exchange throughnormal banking channels, or out of funds from NRE/FCNR(B)/NRO accountsmaintained with banks in India.


Q.            :Is there are any Lock in period for such investment?

Ans.        : Currentlythere is no lock in period.


Q.            :Can NRI/PIO sell their purchased property without the permission of ReserveBank?

Ans.        : Yes. Reserve Bank of Indiahas granted general permission for sale of such property to the following

                categories:-

                                “To a NRI”

                                “To a PIO (If the seller is a PIO,then a prior approval is required from RBI)”

                                “To a person Resident of India”


Q.            :Can the sale proceeds of such property (if and when sold) beremitted/repatriated out of India?

Ans.        : Yes the sale proceeds canbe remitted/repatriated out of India

                In the event property acquiredout of foreign exchange source i.e. remittance through normal banking channels/debit to NRE/ FCNR(B) accounts, the amounts to be repatriated should not exceedthe amount paid for such property from such source. However, repatriation ofsale proceeds purchased out of foreign exchange is restricted to not more thattwo residential properties, in a block of one year, with a facility ofcrediting the Capital gain to the NRO account.

                Again in the event the propertywas acquired out of Rupee source, an amount not exceeding USD one million, perfinancial year, subject to tax compliance, out of balance held in NRO account,may be remitted/repatriated.


Q.            :Can the properties (residential/commercial) be given on rent if not requiredfor immediate use?

Ans.        : Yes. The Reserve Bank hasgranted general permission for letting out any immovable property in India.


Q.            :Does any document require to beexamined before buying a property? 

Ans.        :Before youbuy a property, you must get a title and document search properly conducted byhiring a competent advocate. You cannot examine the documents on your own, andthus, professional assistance needs to be taken.

 

Q.            : What is meant by Carpet Area, Built-up Areaand Super Built-up Area?

Ans.        : Carpet Area: It refers tothe area of the apartment, excluding the area of the walls.

                  Built-upArea: It comprises the apartment area as well as the area of the walls.

  Super Built-up Area: This term is used onlywhen referring to multi-dwelling units. It includes the apartment

  area, the area of the walls and the areaunder common spaces like lobby, staircase, elevators, etc.


Q.            :What documents need to be verifiedbefore making any purchase of a property? 

Ans.        : The following documents mustbe properly verified by an advocate before buying a property: 

                • Approved Layout Plan

                • Approved Building Plan

                • Title Ownership Documents

                • Complete Search 

 

Q.            : What is meant by Stamp Duty?

Ans.        : Stamp Duty refers tocharges in the form of taxes levied by the State Government.

 

Q.            : Which instruments influence thepayment of Stamp Duty on the market value of the property?

Ans.        : The following instrumentshave a great influence on the payment of Stamp Duty on the market value of the property:

• Agreement to Sell

                                • Conveyance Deed

                                • Exchange of Property

                                • Gift Deed

                                • Partition Deed

                                • Power of Attorney

                                • Lease Transfer

 

Q.            : What is meant by aFreehold Property?

Ans.        : A Freehold Property refersto any plot or flat, where there is a sole proprietary ownership with noconditions under the land laws, and there is no less or lessee involved.


Q.            :How can I verify if the documents submitted by the seller are authentic?

Ans.        : You might be required to hire an advocate torender his professional services for the proper examination of theauthentication of the documents submitted by the seller.