NRI Corner

Over the past decade, India’s development as a nation has piqued the interest of investors all across the globe, particularly with Jaipur as it has emerged as one of the most prominent investment destinations in the country. Here are a few FAQs that can aid you in your decision to purchase a home or invest in the commercial ventures of FS Realty.

Who is a Non-Resident Indian?

Based on FEMA of 1999, i.e. the Foreign Exchange Management Act, an Indian resident who resides abroad for business/employment purposes or resides outside the country for an indeterminate amount of time is considered as an NRI. Non-resident foreign citizens who are Indian by origin are treated the same way as non-resident Indian citizens (NRIs). As an addition to this rule, people who are posted in U.N. organisations and official deputed abroad by Central/State governments and Public Sector undertakings on temporary assignments are also treated as NRIs.

Who is a PIO?

A person of Indian origin (PIO) is an individual whose ancestors were born in India and they belong to an Indian ancestry but possess no Indian citizenship. According to the Foreign Exchange Management Act of 1999, a person who is Indian by origin can invest in shares and securities along with the ability to avail bank accounts in India.

    Based on that, the individual qualifies as a PIO if

  • They had possessed an Indian passport at any time
  • They, their parents or grandparents were citizens of India (based on either the Constitution of India or Citizenship Act of 1955)
  • They are the spouse of a citizen of India who has possessed an Indian Passport at any point in time
  • They are the spouse of an individual who was either a resident of India or their parents or grandparents were citizens of India
What are the various facilities for NRIs/OCBs?

    The following facilities are granted to NRIs/OCBs:

  • Investments in securities/shares and deposits with Indian companies/firms.
  • Investments in immovable properties in India
  • Maintenance of bank accounts in India.
Who can purchase immovable property in India?

An NRI has the power to transfer any Indian immovable property to a citizen in India. Also, they are allowed to transfer any immovable property, excluding plantation property or agricultural land, to an Indian citizen who resides out of India or is a PIO citizen outside India.

Can NRIs sell the properties they hold in India without the Reserve Bank’s Permission?

According to the Foreign Exchange Management Act, particularly section 6(4), a citizen of India can own, hold, invest or transfer any immovable property that is located outside India if the aforementioned property was held, owned or acquired by them when the concerned individual was a citizen outside India or if it was inherited from a citizen outside India.

Can NRIs acquire or dispose the residential property by way of gift?

The Reserve Bank of India has granted general permission to a non-resident of India to acquire or dispose of an NRI’s Indian property by way of gift to or from a relative who may be a citizen of India or a person of Indian origin (PIO), whether they are a resident of India or not.

Can NRI’s acquire commercial properties in India?

Even though the Reserve Bank of India has granted general permission to the non-residents of India to acquire immovable property in India, this permission does not give NRIs the power to acquire each and every property within India. Non-residents of India can acquire only residential and commercial property. However, they do not have the power to purchase any plantation property or agricultural land.

Can NRI’s obtain loans for the acquisition of a house/flat for residential purposes from financial institutions that provide housing finance?

The Reserve Bank of India has granted general permission to a certain set of financial institutions that provide housing finance, for e.g. LIC Housing Finance Ltd., HDFC, etc. along with authorized dealers to grant housing loans to NRI nationals for the acquisition of a flat/house for self-occupation, the terms of which are subject to certain conditions. The margin money, purpose of the loan and the quantum of the loan will be at par with those applicable to housing loans to citizens. However, the repayment of the loan should be made within a duration of not more than 15 years from inwards remittances or from funds held in the investors’ NRE/FCNR/NRO accounts.

What is power of attorney?

A POA or Power of Attorney, also known as a letter of attorney, is a written authorization used to act or represent on another person’s behalf in business, private affairs or any other legal matter. The person who authorizes the POA to the other person to act upon is the principal or donor of the power. The person has been granted the authorization to act is the agent or the attorney-in-fact.

What is Loan Sanction Process & its documentation?

A home loan sanction letter is a document issued by a financial institution or bank to an applicant who has applied for the required loan. During the process of the home loan, right from the submission of the application to the final disbursement, the sanction letter from a financial institution or bank possesses utmost importance.

    The checklist of documents required to apply for a home loan are as follows:

  • 1 passport size color photograph
  • Photo Identity Proof
  • Residence Address Proof
  • Residence Ownership Proof
  • Income Proof
  • Job Continuity Proof
  • Bank Statement
  • Investment Proof

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