Q: Who is a Non-Resident Indian (NRI)?
A: A NRI is a Person Resident Outside India who is a citizen of India or a Person of Indian origin.
A Person resident outside India is a person who has gone out of India or who stays outside India, in either case
For or on taking up employment outside India, or
For carrying on outside India a business or vocation, or
For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period
Q: Who is a Person of Indian Origin?
A: A person of Indian origin is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who:
At any time, held Indian passport;
Who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)."
Q: Do non-resident Indian citizen require permission of Reserve Bank to acquire residential/ commercial property in India?
A: No. An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/ plantation property or a farmhouse
Q: What particulars must 'Deeds of Apartments' under the Apartment Ownership Act contain ?
A: Deeds of Apartments must contain the following particulars, namely:
a) Description of the land as provided by Section 11 of the Act or the post office address of the property, including in either case the liber, page and date of executing the Declaration, the date and serial number of its registration under the Registration Act, 1908 and the date and other reference, if any of its filing with the competent authority.
b) The apartment number of the apartment in the Declaration and any other data necessary for its proper identification.
c) Statement of the use for which the apartment is intended and restrictions on its use, if any.
d) The percentage of undivided interest appertaining to the apartment in the common areas and facilities.
e) Any further details which the parties to the deed may deem desirable to set forth consistent with the Declaration and this Act.
A true copy of every Deed of Apartment shall be filed in the office of the competent authority.
Q: What are the permissions required when one is in the process of acquiring immovable property?
A: This will depend on the considerations agreed upon to be paid and the status of the sellers and or the purchaser/s.
1. If the seller, being an Indian national, wants to sell his property to a purchaser, being an Indian national, and if the sale consideration exceeds the prescribed limit under Chapter XXC of the Income-Tax Act, 1961, the parties to the Agreement for Sale or Memorandum of Sale should be within 15 days of the execution of such Agreement of Sale/Memorandum of Sale file Form 37-I with the Appropriate Authority, within whose jurisdiction the property is situated, for a grant of 'No Objection Certificate'.
2. After the receipt of the 'No Objection Certificate' under Chapter XXC of the Income Tax Act, 1961 and before executing the Sale Deed, the Seller will be required to obtain clearance certificates under Section 230-A of the Income Tax Act, 1961.
3. In case the Urban Land (Ceiling and Regulation) Act 1961 or any similar law is in existence, in the State where the Property is situated, permission also may be required under such law or Urban Land (Ceiling and Regulation) Act, 1976, as applicable.
4. In case the Seller and/or the Purchaser is a foreign national (foreign national not being of an Indian origin), such a Seller or Purchaser would require to obtain permissions for sale or purchase of immovable property in India proposed to be sold/ purchased under the Foreign Exchange Regulation Act.
The requisite Form IPI-1 and/or Form IPI-2 of the Exchange Control Rules are to be filled and permissions for sale and/or purchase of the property should be obtained.
5. In case of the purchaser being an NRI or a Foreign National of Indian Origin (as per qualification), acquires residential/ commercial immovable Property in India from and out of foreign funds, either paid directly or through NRI account, such a purchase is entitled to repatriation of such funds used for purchase after a lock-in period of three years from the date of Sale Deed being executed or possession being taken in part performance, whichever is earlier, provided the Purchaser files for IPI 8 of the Exchange Control Rules within the period of 90 days of the Sale Deed being executed or possession being taken in part performance, whichever is earlier.
