Non-Resident Indians (NRIs) are permitted to purchase and own property in India. This is regulated by the Foreign Exchange Management Act (FEMA) of 1999, which governs all foreign exchange transactions in India.
Under FEMA, NRIs can purchase any kind of property in India, including residential, commercial, industrial or agricultural land. However, it should be noted that there are certain restrictions on the type of property that can be purchased.
For instance, NRIs cannot purchase agricultural land, farmhouses, or plantation properties in India unless they obtain prior permission from the Reserve Bank of India.
In order to purchase property in India, NRIs must comply with certain procedures.
Firstly, they must open a Non-Resident Ordinary (NRO) bank account in India, which is used to make payments towards the purchase of the property.
The funds for the purchase of the property must be remitted from abroad to the NRO account in foreign currency. Any sale proceeds from the property must also be credited to the NRO account.
Additionally, NRIs must obtain a Permanent Account Number (PAN) and register themselves with the Income Tax Department in India. This registration is mandatory for all buyers of property in India, regardless of their residency status.
The documentation required for purchasing property in India may differ depending on the state or union territory in which the property is located. Generally, however, the following documents are required:
• Identification documents (passport, visa, etc.)
• Address proof
• Certificate of Indian origin
• Bank statement of the NRO account
• Sale agreement
• Power of attorney (if applicable)
• No Objection Certificate (if applicable)
• Tax clearance certificate
• Title deed
It should be noted that all documents must be attested by a notary public and/or an authorized official of the Indian Embassy/Consulate. In some cases, additional documents may be required.
In conclusion, NRIs are allowed to purchase property in India, provided they comply with the relevant regulations.
It is important to note that these regulations may vary depending on the state or union territory in which the property is located.
Also read: Can NRI buy agricultural land in India