1.How do I repatriate profits or capital gains on sale of a property?

A, There is a restriction on the remittance of proceeds beyond the principal amount of investment. However, the profits and/or gains can be deposited in the NRO account of the remitter and, consequently, the same can be remitted outside India, provided it does not exceed the threshold of $1 million per financial year.

2.Is rental income freely repatriable?

A, Rental income can be repatriated freely from India without taking any specific permission.

3.Is there any limit on the number of properties that NRI or PIO can buy or sell?

A, There is no restriction on the number of properties that a person can buy or sell. However, there is a restriction on the number of residential properties whose sales proceeds can be freely repatriated. While the proceeds of two residential properties can be freely repatriated, the proceeds from third property and thereafter can be deposited in an NRO account out of which a total of $1 million per financial year can be freely remitted.

4.Who bears the exchange rate gains or losses on transfer of funds?

A, Any gains or losses on transfer of funds would be borne by customers. We will only credit the value that is actually received. Any variation will be carried over onto the next installment due

5.Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers/financial institutions providing housing finance?

A, Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers/financial institutions providing housing finance? Reserve Bank has granted general permission to certain financial institutions and authorized dealers approved by the National Housing Bank to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investors' NRE/FCNR/NRO accounts.

6.What mode of payment can an NRI/PIO make to purchase a residential property in India?

A, What mode of payment can an NRI/PIO make to purchase a residential property in India? Under the general permission, an NRI/PIO may purchase a residential property in India by funds remitted to India through normal banking channel or funds held in his NRE/FCNR (B)NRO account. No consideration shall be paid outside India or from domestic resident accounts if held by such NRIs.

7.What documents are required by an NRI/PIO to buy an immovable residential/commercial property in India?

A, PAN card OCI/PIO card (In case of OCI/PIO) Passport (In case of NRI) Passport size photographs Address proof

8.Can a foreign national of Indian origin buy property in India? What is the rule regarding foreign nationals of foreign origin?

A, The general permission for NRI's holding foreign passport is that the RBI has allowed them to acquire, hold, transfer or dispose off by way of sale or inheritance, immovable properties situated in India. This has been granted, provided the property is for the purchaser's bonafide residential use. However, NRIs cannot purchase any agricultural land or plantation property. The purchase consideration is met either by remittance from funds abroad through normal banking channels or out of NRE/FCNR. Income accruing by way of rent from the properties purchased or acquired by inheritance will not be allowed to be repatriated abroad even if the purchase consideration was met out of NRE/FCNR account. It is however, necessary for foreign citizens of Indian origin to declare such property to RBI within a period of 90 days from the date of purchase in the prescribed IPI 7 to the Chief General Manager, Exchange Control Department, Foreign Investment Division, Central Office Department, Foreign Investment Division, Central Office, RBI Mumbai. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he/she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of/or reporting to the Reserve Bank of India.

9.Who is a person of Indian Origin (PIO)?

A, A Person of Indian Origin (PIO) is a person of Indian origin or ancestry who is not a citizen of India, but is a citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.

10.Who is a non-resident Indian (NRI)?

A, A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily immigrated to another country for six months or more for employment, residence, education or any other purpose.