This is perhaps one of the most common queries every NRI looking forward investing in India goes bothered about. Well, this post is going to wipe out all the qualms and confusions, thereby coming to their great aid.
With RBI issuing a notification permitting NRIs to buy any immovable property in India, NRIs have not only been hugely benefitted, but have also stirred towards investing in India. NRIs can buy properties anywhere in India. Not only that, they can also accept any Indian property as a gift from any Indian citizen. Especially, for all the Indian citizens who have become NRIs, RBI has again proved to be a bliss. According to the new regulations stated by the authority, no NRI need to seek for special permission while purchasing residential as well as commercial properties in the country.
But, when they are not permitted to spend in plantation properties, they can continue to have ownership on such agricultural land or farmland that they have been inheriting since a long time, even before becoming an NRI. Also, in case, any farmland is gifted to an NRI by any Person of Indian Origin (PIO), He/she can own the property. NRIs are also allowed to own a property jointly with another NRI residing in India, but not with anyone having Indian citizenship.
Also, when it’s about selling a property, NRIs, just like the Indians, can do anything they want with their assets. Whether it’s a farmland or an agricultural land or even a residential property, a NRI can gift it to any Indian resident and at the same time, he/she can also transfer the immovable property to anyone residing abroad.
At the same time, there is no strict regulation on the number of properties that can be purchased by an NRI. But, while doing so, one of the most important factors that every NRI should remember is that all the monetary transactions must be done in Indian currency.
However, for every NRI seeking to invest in properties in India, the most important criteria they should stick to is a sound understanding of the entire financial scenario. The financial milieu of the country always goes hand in hand with investments and an NRI should always be well-aware of the dynamic factors related to the same.
All the regulations set by the Reserve Bank of India are too simple to understand for the NRIs, for which they don’t need any special permission from the authority to proceed with the process. It has not only eased up things for the NRIs, but has also been beneficial for the country’s economy as well. There are a number of real estate transaction guidelines under the Foreign Exchange Management Act (FEMA) too and the NRIs are advised to adhere t the norms to go through a hassle-free process.
Nevertheless, in case, an NRI seeking to book an under construction property, he/she has to act wise before giving the builder or any second party the power of attorney. In addition, an NRI, just like an Indian, is subject to tax benefits and can avail all the clauses that any residence of India can have.
Last but not the least; with the Indian Government taking a great initiative to make the process easier, the NRIs are not likely to face any hurdle in their way of making investment in India.