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TMI BlogMaster Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin.X X X X Extracts X X X X X X X X Extracts X X X X ..... al Manager INDEX 1. Introduction 2. Acquisition and Transfer of Immovable Property in India A Non- Resident Indian (NRI) B Person of Indian Origin (PIO) 3. Acquisition of immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals 4. Acquisition of immovable property by person resident outside India for carrying on a permitted activity 5. Repatriation of sale proceeds of immovable property 6. Refund of purchase consideration 7. Prior permission to the citizens of certain countries for acquisition or transfer of immovable property in India 8. Purchase of Immovable Property in India by a Foreign National of Non- Indian Origin resident outside India Annex-1 Press Release of Government of India Annex-2 Form IPI APPENDIX List of notifications / A.P.(DIR Series) 1. Introduction The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of sale to a person resident in India.He may transfer agricultural land / farm house / plantation property in India, by way of gift or sale to a person resident in India, who is a citizen of India. He may also transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India, who is a citizen of India or to a Person of Indian Origin resident outside India. iv) Payment for Acquisition of Immovable Property in India A PIO can make payment for acquisition of immovable property in India (other than agricultural land / farm house / plantation property): By way of purchase out of funds received by inward remittance through normal banking channels or by debit to his NRE / FCNR(B) / NRO account. Such payments cannot be made either by traveller s cheque or by foreign currency notes or by other mode other than those specifically mentioned above. (v) A PIO who has purchased residential / commercial property under the general permission, is not required to file any documents with the Reserve Bank. 3. Acquisition of immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals In terms of Regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn exchange law in force at the time of acquisition by him or the provisions of these Regulations; (ii) the amount to be repatriated does not exceed: the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or the amount paid out of funds held in Foreign Currency Non-Resident Account,or the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; and (iii) in the case of residential property, the repatriation of sale proceeds is restricted to maximum two such properties. (B) Immovable property acquired by way of inheritance/ legacy/ out of Rupee funds A Non-Resident Indian (NRI) / Person of Indian Origin (PIO) may remit an amount, not exceeding US $ 1,000,000 (US Dollar One million only) per financial year out of the balances held in NRO accounts / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of inheritance / legacy/ out of Rupee funds. This is subject to production of documentary evidence in support of acquisition, inheritance or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Reserve Bank. ii. Foreign Nationals of non-Indian origin, other than a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, can acquire immovable property in India on becoming resident in India in terms of Section 2(v) of the Foreign Exchange Management Act, 1999. In this connection, he has to satisfy the condition of period of stay. The type of visa granted should clearly indicate the intention to stay in India for an uncertain period to determine his residential status in terms of section 2(v) FEMA, 1999. (Press Release dated February 1, 2009 issued by Government of India is enclosed as Annex-1). iii. Foreign nationals of non-Indian origin who have acquired immovable property in India by way of inheritance with the specific approval of the Reserve Bank or have purchased the immovable property with the specific approval of the Reserve Bank cannot transfer such property without the prior permission of the Reserve Bank. Annex-2 Form IPI ( See Regulation 5 ) Declaration of immovable property acquired in India by a person resident outside India Instructions: The declaration should be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DIR Series) circulars which have been consolidated in this Master Circular Sl. No. Notification / Circular Date 1 FEMA 21/2000-RB May 3, 2000 2 FEMA 62/2002-RB May 13, 2002 3 FEMA 65/2002-RB June 29, 2002 4 FEMA 64/2002-RB June 29, 2002 5 FEMA 93/2003-RB June 9, 2003 6 FEMA 146/2006-RB February 10, 2006 7 FEMA 200/2009-RB October 5, 2009 1 A.P.(DIR Series) Circular No.1 July 2, 2002 2 A.P.(DIR Series) Circular No.5 July 15, 2002 3 A.P.(DIR Series) Circular No.19 September 12, 2002 4 A.P.(DIR Series) Circular No.35 November 1, 2002 5 A.P.(DIR Series) Circular No.46 November 12, 2002 6 A.P.(DIR Series) Circular No.27 September 28, 2002 7 A.P.(DIR Series) Circular No.56 November 26, 2002 8 A.P.(DIR Series) Circular No.67 January 13, 2003 9 A.P.(DIR Series) Circular No.19 September 23, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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