Que: Can sale proceeds of such property if and when sold be remitted out of India?

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India, who is a citizen of India, or a person of Indian origin, the authorized dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied:-

the immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999;
the sale takes place after three years from the date of acquisition of such immovable property of from the date of payment of final installment of consideration for its acquisition, whichever is later;

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 all other cases prior permission 9 RBI is required

Que: Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?

A: Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of immorelde properties other than agricultural land/farmhouse/plantation property by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not.

Que: Can NRI's/PIO's rent out the properties (residential/commercial) if not required for immediate use?

A: Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation

Back   Next