A Non Resident Indian (NRI) is a person carrying on outside India for business, vocation or for any other purpose for an uncertain period. Being an Indian citizen while working abroad these NRI’S or PRO (Person of Indian Origin) are given some facilities by the Indian government while staying abroad. They are granted for an Indian bank account, investment and deposit with Indian firms and companies and investment in immovable properties as well.
Talking about real estate investment, love for hometown is always present at the core of heart in any NRI. They always want to return back to their birth place after such hassle in their professional services. They look forward in investing in Real Estate for their future use as it also gives good return for the expense they make to the property.
Reserve Bank of India has some specific guidelines regarding investment on properties bought by NRI’S in India. The foreign exchange management act (FEMA) says that a person who is staying abroad is not a resident of India the different types of account the can be maintained by an NRI are foreign exchange NRO savings and post office accounts. As the government has eased the norms for NRI investment in real estate sector they are permitted to earmark a position of their investment in real estate and earn money.
Now permission is required from RBU while buying or selling a property if you are an Indian passport holder. Repatriation is also allowed after the bill passed on 26th May 1993. The RBI also granted permission to NRI’S for any kind of investment whether it is personal or for business purpose. Under these schemes they do not need any specific permission from RBI.
Investment without repatriation basis includes mutual funds, deposit with companies, investment in non-convertible debentures and on commercial papers. Also, If a property is gifted to any NRI in India or inheritance that acquire such property with the provision of foreign exchange law in force at the time of acquisition.