NRI CORNER

NRI Clients Corner

A non-resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education or any other such purpose. A person of Indian origin (PIO) is a person of Indian origin or ancestors but who is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken citizenship of another country, or have ancestors born in India or other states. Other terms with vaguely the same meaning are overseas Indian and expatriate India. In common usage, this often includes Indian-born individuals (and also people of other nations with Indian ancestors) who have taken the citizenship of other countries. As per the Ministry of Overseas Indian Affairs, India has the second largest diaspora in the world after overseas Chinese. The overseas Indian community is estimated at 25 million spread across every region of the world.

Investment destination: India

In recent times, India has emerged as one of the popular real estate destinations for global investors. Real estate is one of the booming industries in the country and investment in property is promising and set to flourish in the times to come. It is expected to scale new heights with the emergence of fresh localities in tier-I and II cities.
According to the Foreign Exchange Management Act (FEMA) of 1999, an Indian Citizen who stays abroad for employment/ business or stays outside the country for an indefinite period of time is considered to be an NRI. (Persons posted in U.N. organizations and official deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with non- resident Indian citizens (NRIs).

PIO is a person of Indian origin whose ancestors were born in India and he/she has an Indian ancestry but not an Indian citizenship. As per the FEMA of 1999, a person of Indian origin can avail bank accounts, invest in shares and securities in India. So, he or she
has had Indian Passport at any time
himself/herself, parents or grandparents were Indian citizens (of the Constitution of India or Citizenship Act, 1955 (57 of 1955)
is a spouse of an Indian citizen or a person who held an Indian Passport at any time
is a spouse of a person who either was a citizen of India or his parents or grandparents were a citizen of India

According to the RBI guide lines, an NRI/PIO can acquire a residential property in India by a way of gift from an Indian, NRI/PIO or purchase it. He or she can even acquire residential property by way of inheritance from a person who is a resident of India as per the Provisions of Section 6(5) of the FEMA, 1999.
When NRIs/PIOs purchase an immovable residential property under general permission they are not required to file any documents with the Reserve Bank of India.
No, there aren’t any restrictions.
An NRI can sell his or her property in India to an Indian resident/ NRI / PIO.
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