With the rupee falling, property has been one profitable investment option for non-residential Indians (NRIs). Also, whether the marketplace is hot or not, many NRIs like to have a place back here in India. The RBI’s guidelines on it are simple enough as well and you do not have to take any before authorization from the authorities. The guidelines for any such property deal fall under the International Return Control Act (FEMA).
Can an NRI buy property in India?
- Yes, a non-resident India can buy either a home or an industrial property in India. Further, there is no limit on the amount of business or homes that an NRI can buy in India.
- Exception: An NRI, however, cannot buy farming area, plantation land or a farm house in India. He cannot even acquire such property as a gift.
There is, however, no bar on getting such property.
An NRI buying an immovable property in India does not require any special authorization. However, the payment can’t be made in forex. NRIs can buy using Indian currency, the Rupee, through resources received in the country by means of normal banking channels. These resources have to be maintained in a non-resident account under the foreign Exchange management Act (FEMA) and the Reserve Bank of India (RBI) guidelines. There are also no limitations on a number of immovable qualities that an NRI may buy, either professional or personal.
A foreign organisation that has established a cooperated office in India cannot buy immovable property in India but can lease an immovable property for not more than 5 years.
It is also prominent that each state in India has their own set of laws and regulations with respect to obtaining immovable property and as per such state laws and regulations may need obtaining a previous authorization for getting the immovable property. Hence, whether the immovable rentals are bought by a PIO, NRI, International Nationwide of Non-Indian Source or a different organisation, the individual is required to follow situations laws and regulations as well as the norms laid down by FEMA, Regulations and Master Circular. The latest guidelines released by the Reserve Bank of India time and again must be referred by PIO, NRI, Foreign National of Non-Indian Origin or a different organisation to prevent or minimise chances of litigations related breaches.
Many times your home is bought in India by PIOs and NRIs by talking to with friends, relatives and co-workers who do not have actual knowledge of the policies applicable which buying property assets in India. Instead one should consult property professionals like Property Consultants and Property Lawyers who are well versed with all such property laws and regulations. Proper researching the marketplace should be conducted by the investor to prevent any kind of miscommunication that could lead to huge losses and legal wrangles.