A person outside India who is not an N.R.I. but married to an N.R.I. may jointly acquire one immovable property like residential projects in Nashik. The property can be other than agricultural land, farmhouse, or plantation property) with their N.R.I. spouse, subject to the conditions set out in FEMA 21 regulation 6R.
N.R.I.s can remit the proceeds of the sale of immovable property in India (other than agricultural land, farmhouses, and plantation properties) if they meet the following criteria:
The immovable property was bought in compliance with the terms of the current foreign exchange law or the Foreign Exchange Management Regulations 2018; The purchase price was paid in foreign currency obtained through banking channels, or in money maintained in a foreign currency non-resident account, or funds stored in a non-resident external account; The repatriation of sale earnings from residential property is limited to no more than two such properties.
The R.B.I. releases guidelines from time to time, outlining the legislation and allowing N.R.I.s to buy certain immovable assets in India, such as new residential projects in Nashik, without seeking approval from the R.B.I. DUE TO THESE INSTRUCTIONS, the R.B.I. has provided N.R.I.s general authorization to buy specific immovable properties in India.
N.R.I.s can purchase residential and commercial properties in India under these guidelines. However, they cannot buy agricultural land, farmhouses, or plantation assets. Because owning a farmhouse is fashionable, it's important to note that under current laws, N.R.I.s cannot hold a farmhouse in India.
As long as N.R.I.s invest in residential or commercial property in India, they are not required to notify the R.B.I. about their purchases, even after the transaction has been completed. Furthermore, an N.R.I. has no limit on the number of residential or commercial properties they can buy in India.
The N.R.I. must either pay through banking channels by remittance overseas or use the balance in their NRE/NRO/FCNR account to purchase allowed immovable properties in India, such as flats in Nashik. The payment cannot be made in the form of traveler's cheques or foreign cash in India since the money, for this reason, must come through only authorized methods, including banking systems. N.R.I.s can even use an Indian rupee home loan to fund the acquisition of a residential property.
An N.R.I. employee's Indian employer, a housing finance firm, or a bank can issue the house loan to finance the property. Payments of E.M.I. for repaying a home loan taken out in Indian currency in India can be made either by direct remittance from overseas or funds held in the N.R.I. 's NRE/NRO/FCNR account. In addition to the sources mentioned earlier, the home loan might be serviced with rents earned from the property or money transferred to the borrower's account from relatives' accounts.
In addition to purchasing property, an N.R.I. may receive any residential or commercial property as a gift from any of his N.R.I., O.C.I., or resident relatives. Although an N.R.I. is not permitted to purchase agricultural land or other property in India, he can inherit such property from any Indian resident.
Inheritance can be received through a Will from a non-relative or through personal law from a relative if a legal Will is not created. An N.R.I. might inherit any immovable property in India from another N.R. I. If the N.R.I. acquired the property under the permissible laws in effect at the time of acquisition.
Yes, an Indian resident can borrow money from an N.R.I. under the Reserve Bank of India's Master Direction on Borrowing and Lending Transactions in Indian Rupee between Persons Resident in India and N.R.I.s. It was issued on 1 January 2016, and the Foreign Exchange Management Regulations, 2000, published on 3 May 2000.
The Reserve Bank of India and the Ministry of Finance control lending and borrowing between Indian residents and N.R.I.s. The R.B.I. issues notifications from time to time that regulates loans and borrowing. The Foreign Exchange Management Act, 1999, the Reserve Bank of India's Master Direction on Lending and Borrowing Transactions in Indian Rupee between Persons Resident in India and N.R.I.s issued on 1 January 2016. The Reserve Bank of India's Foreign Exchange Management (Borrowing or lending in foreign exchange) Regulations, 2000 published on 3 May 2000, govern lending and borrowing.
The Reserve Bank of India has granted broad permission to banks and housing finance companies registered with the N.H.B. (National Housing Bank) to lend to N.R.I.s to purchase residential property in India. The loan should be approved in Indian currency, and it must be paid back in Indian currency.
According to rules, the loan money cannot be deposited directly into an N.R.I. 's bank account; instead, it must be transferred to the seller's or developer's account. The loan can be repaid using an N.R.I. 's FCNR deposits or NRO/NRE account.
A set of rules governs the repatriation of funds. An N.R.I. may repatriate the proceeds from the immovable property's sale in India under the following conditions:
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The property must have been purchased in conformity with FEMA regulations that were in effect at the time.
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Suppose the property was purchased with foreign exchange remitted through normal banking channels or money held in an FCNR (B) account.
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In that case, the amount repatriated could not exceed the original amount paid for the property.
If the property is purchased out of rupee source of funds, the balance in the NRO account will be used. If the property was given to the N.R.I. as a gift, the sale proceeds must be credited to an NRO account and then repatriated.
In the case of the property being inherited from a resident Indian, funds may be repatriated if documentary evidence of inheritance, an undertaking by the NRI/PIO, and a certificate from an authorized chartered accountant in the formats defined by the Central Board of Direct Taxes are presented (CBDT).
The repatriation of sale earnings from a residential property like township projects in Nashik is limited to less than or equal to two properties.
Even if the property was inherited from someone outside India, a foreign national might repatriate the selling proceeds. The R.B.I. must, however, give its prior consent.
For the sale proceeds to be repatriated, a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, or Iran must obtain explicit authorization from the R.B.I.
The conditions are:
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Indian residents can only borrow money from N.R.I.s in Indian rupees. The following are the terms and conditions:.
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Borrowing must be done on a non-repatriation basis solely. This means that money can't be taken back once it's been given.
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There are only two ways to get a loan. The first option is to deduct the loan from the N.R.I.'s NRE/NRO/FCNR account and give it to the Indian resident. Inward remittances from outside India are the second option.
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The loan can't be extended beyond three years.
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The interest rate should not be more than 2% higher than the Bank Rate on the day the loan is given. The N.R.I. 's NRO account is the only place where the principal and interest can be repaid.
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An Indian resident cannot borrow foreign currency from an N.R.I. However, the R.B.I. may allow a person to borrow foreign money from someone outside India in some circumstances. The following are examples:
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A resident of India can take out a loan from a bank outside of India to finance any civil construction or export project outside of India.
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A resident importer can take out a foreign currency loan from an overseas source of goods. On the other hand, the loan should be repaid in three years.
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Residents of India can borrow money in foreign currency from their close N.R.I. relatives; the amount cannot exceed US$ 2,50,000. There should not be any interest attached to it. The repayment duration should be less than seven years.
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The loan will only be used for personal purposes by the borrowers. The loan cannot purchase an immovable property like ready possession flats in Nashik, invest in stocks and bonds, or re-lend.
