NRI Buyers Guide

NRI Buyers Guide

NRI Information

NRI Information

Are you a Non-Resident Indian, looking to purchase property in India? Navigating the complexities of such a purchase remotely, can be challenging, especially with all the legalities involved. Whether you wish to make the purchase as an investment or the purpose of end-use for your family members, we’ve created a detailed guide to make your journey easier.

General Note on FAQs

These FAQs attempt to put in place the common queries that users have on the subject in easy-to-understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the rules made, or directions issued thereunder may be referred to. The relevant principal rules are the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019 as amended from time to time (“NDI Rules”).

Legal information

An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs) for the purpose of certain facilities.


Who is a Non-Resident Indian?

A ‘Non-Resident Indian’ (NRI) refers to a person resident outside India who is a citizen of India.


Who is an Overseas Citizen of India (OCI)?

An ‘Overseas Citizen of India’ (OCI) is a person resident outside India who is registered as an Overseas Citizen of India Cardholder under Section 7(A) of the Citizenship Act, 1955.


Can a NRI and an OCI acquire immovable property in India?

Yes. An NRI or an OCI can acquire immovable property in India (other than an agricultural land or farmhouse or plantation property). Refer Rule 24(a) of the NDI Rules.


Can a NRI and an OCI acquire immovable property in India by way of Gift?

An NRI or an OCI can acquire immovable property in India (other than an agricultural land or farmhouse or plantation property) by way of Gift only from a person resident in India or from an NRI or from an OCI, who in any case is a relative as defined in clause (77) of section 2 of the Companies Act, 2013. Refer Rule 24(b) of the NDI Rules.


Can a NRI and an OCI acquire immovable property in India through inheritance?

An NRI or an OCI can acquire any immovable property in India by way of inheritance from:a person resident outside India who had acquired such property in accordance with the foreign exchange law in force at the time of acquisition by him/her;a person resident in IndiaRefer Rule 24(c) of the NDI Rules.


Can a NRI and an OCI transfer immovable property in India?

An NRI or an OCI can transfer:any immovable property in India to a person resident in India;any immovable property in India (other than agricultural land or farm house or plantation property) to an NRI or an OCI.Refer Rules 24(d) and 24(e) of the NDI Rules.Note: The words “Transfer” is defined under (ze) of the Foreign Exchange Management Act, 1999 to include sale, purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien.


What are the accepted modes of payment for acquisition of immovable property in India?

Payment for immovable property has to be received in India through funds received in India through banking channels by way of inward remittance from any place outside India and is subject to payment of all taxes and other duties/ levies in India. The payment can also be made out of funds held in any non-resident account maintained in accordance with the provisions of the Act, rules or regulations framed thereunder. Payments should not be made either by traveller’s cheque or by foreign currency notes or by any other mode other than those specified above. Refer Proviso to Rule 24(a) of the NDI Rules.


Can Foreign Embassies/ Diplomats/ Consulate Generals acquire or transfer immovable property in India?

Foreign Embassy/ Diplomat/ Consulate General, can purchase/ sell immovable property (other than agricultural land/ plantation property/ farmhouse) in India provided:Clearance from the Government of India, Ministry of External Affairs is obtained for such purchase/sale; andThe consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channels.Refer Rule 27 of the NDI Rules.


How can a Long-Term Visa (LTV) holder acquire property in India?

Citizen of Pakistan, Bangladesh or Afghanistan belonging to minority community (Hindu, Christian, Sikh, Parsi, Buddhist, Jain) in that country and residing in India who has been granted an LTV by the Central government can purchase only one residential immovable property in India as dwelling unit for self-occupation and only one immovable property for carrying out self-employment. However, such acquisition is subject to the following conditions:the property shall not be located in and around restricted or protected areas so notified by the Central Government and cantonment areas;the person submits a declaration to the Revenue Authority of the district where the property is located, specifying the source of funds and that he or she is residing in India on LTV;the registration documents of the property shall mention the nationality and the fact that such person is on LTV;the property of such person may be attached or confiscated in the event of his or her indulgence in anti-India activities;a copy of the documents of the purchased property shall be submitted to the Deputy Commissioner of Police (DCP) or Foreigners Registration Office (FRO) or Foreigners Regional Registration Office (FRRO) concerned and to the Ministry of Home Affairs (Foreigners Division);such person shall be eligible to sell the property only after acquiring Indian citizenship, however, transfer of the property before acquiring Indian citizenship shall require prior approval of DCP or FRO or FRRO concerned.Refer Rule 28 of the NDI Rules.


Can a spouse of an NRI/ OCI who is not a NRI/ OCI acquire property in India?

A person resident outside India, not being a Non-Resident Indian or an Overseas Citizen of India, who is a spouse of a Non-Resident Indian or an Overseas Citizen of India may acquire one immovable property (other than agricultural land/ farmhouse/ plantation property), jointly with his/ her NRI/ OCI spouse subject to the following conditions:consideration for transfer, shall be made out offunds received in India through banking channels by way of inward remittance from any place outside India;funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank.no payment for any transfer of immovable property shall be made either by traveller’s cheque or by foreign currency notes or by any other mode other than those specified above.the marriage has been registered and subsisted for a continuous period of not less than two years immediately preceding the acquisition of such property;the non-resident spouse is not otherwise prohibited from such acquisitionRefer Rules 25 of the NDI Rules.


Can a non-resident repatriate the sale proceeds of immovable property in India?

A person resident outside India who holds, owns, transfers or invests in any immovable property situated in India which was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India or his successor cannot except with the general or specific permission of the Reserve Bank, repatriate outside India the sale proceeds of any such immovable property;an NRI or an OCI may repatriate outside Indian sale proceeds of immovable property (other than agricultural land or farm house or plantation property in India), subject to satisfaction of below conditions:the immovable property was acquired by the seller in accordance with the foreign exchange law in force at the time of acquisition by him/her;the amount for acquisition of the immovable property was paid in foreign exchange received through banking channels or out of funds held in FCNR Account or out of funds held in NRE Account;in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.


Important Disclaimer:

This information is intended to acquaint you to the legal framework of foreign exchange laws in India. However, Tata Housing Development Company Limited or its affiliates (“Tata Housing”) does not provide legal advise. You should consult an attorney regarding your specific legal questions. This guide should not serve as a substitute for professional legal advise. Laws and regulations change frequently and this information may not be current or accurate. To the maximum extent permitted by Law, Tata Housing provides this material on an “As-is” basis. Tata Housing disclaims and makes no representation or warranty of any kind with respect to this material, express or implied or statutory, including representations, guarantees or warranties of merchantability, fitness for a particular purpose, title, non-infringement or accuracy. Tata Housing will not be liable to anyone for any direct, special, indirect, moral, consequential, incidental, punitive or exemplary damages arising from the use of this material, including loss of profits, reputation, use or revenue or interruption of business regardless of the form or source of the claim or loss, including negligence, whether the claim or loss was foreseeable and whether you have been advised of the possibility of the claim or loss.


Connect with us