Question
What should be the method of payment for purchasing residential immovable property in India by foreign nationals of Indian origin under the general permission?
Answer
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India
Question
Do non-resident Indian nationals require permission of Reserve Bank to acquire residential / commercial property in India?
Answer
No permission is required by non-resident Indian nationals to acquire immovable Property in India.
Question
Are foreign nationals of Indian origin allowed to purchase immovable property in India?
Answer
Yes, foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India
Question
What way the Non-resident Indian can finance the flat?
Answer
The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original non-resident account or from Non-resident (External) Accounts. When the flat is under construction, it may be possible to get instalment facilities from the builder. Loan may also be available in India for purchase of flats, for example from Housing Development Finance Corporation, ANZ Grindlays Bank, Citi Bank etc. Non-resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to non-resident Indians even if they are abroad, provided a family member of his or her in India is made a co-borrower and a power of attorney is given to his representative in India
Question
Non-resident Indians are staying abroad can the property be purchased through the agent or through the Power of Attorney?
Answer
The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.
Question
Are there any formalities to be completed by foreign nationals of Indian origin for purchasing residential immovable property in India?
Answer
They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Bombay within a period of 90 days from the date of purchase of immovable property.
Question
Can the rental income from such property be remitted outside India?
Answer
No. Such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.
LIST OF DETAILS DEPENDING ON THE CURRENCY
S.NO. Currency CITI BANK Branch Nostro A/c NO SWIFT Code
- US Dollar New York 36241797 CITIUS33
- POUND Sterling London 600091 CITIGB21
- Euro London 5501024 CITIGB20
- Japanese Yen Tokyo 0207875406 CITIJPJT
- Swiss Francs Zurich 10570019 CITIGB2L
- Australian Dollars Sydney 912019004 CITIAU2X
- Singapore Dollars Singapore 0700385-19 CITISGSG
- Canadian Dollars Toronto 2182746005 CITICATT
- Dubai Dhiram Dubai 700006018 CITIAED