15 April 2015
Assessee is a US Citizen, resident in India, working with the Indian Branch of a US Based Company. The assessee now wants to buy a flat in India. Kindly give your opinion on the following- What are the legal implications under IT Act, 1965 and FEMA? What are the formalities that are required to be undertaken under the India Law?
15 April 2015
Foreign nationals who are resident in India can purchase immovable property in India without any special approval from the RBI. However such buyers should check with their lawyers before buying any property as they might require approvals from other authorities such as the State Government, etc. To be considered a resident of India under FEMA, a foreign national would have to satisfy two conditions: He/she must be residing in India for more than 182 days during the preceding financial year, and His/her continued presence in India in the current financial year must be for the purpose of taking up employment, carrying on business or vocation in India or for any other purpose that would indicate your intention to stay in India for an uncertain period Both conditions must necessarily be fulfilled for a foreign national to be considered a resident of India under FEMA.
17 April 2015
Thank you for the reply Sir! I hold the same opinion, Foreign nationals do not need any approval from RBI if they satisfy the conditions as stated by you and the money invested has been earnt in India.
Further, if anyone can help me with the State laws of Assam in this respect.
CAclubindia
