nri wanna purchase property in india

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2011 i have two queries:
1) Can a NRI purchase property in india? &
2) What will happen if he purchase it from a builder?
please reply as soon as u can...

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 September 2011 Under the general permission available, the following categories can purchase immovable property in India:

i) Non-Resident Indian (NRI)1
ii) Person of Indian Origin (PIO)2

The general permission, however, covers only purchase of residential and commercial property and is not available for purchase of agricultural land / plantation property / farm house in India.

ALSO NOTED THAT:

a non-resident Indian can buy either a residential property or a commercial property in India. Further, there is no limit on the number of residential or commercial properties that an NRI can purchase in India.

Exception: An NRI however cannot buy agricultural land, plantation land or a farm house in India. He cannot even acquire such property as a gift.

There is however, no bar on inheriting such property.

RBI permission is not required to buy residential or commercial property.

Payment for the purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the NRE, NRO or FCNR Account.

According to the Indian Income Tax Act, if a person (resident or NRI) owns more than one house property, only one of them will be deemed as self-occupied. There will be no income tax on a self-occupied property. The other one, whether you rent it out or not, will be deemed to be given on rent. If you have not given the second property on rent, you will have to calculate deemed rental income on the second property (based on certain valuations prescribed by the income tax rules) and pay the tax thereof.

https://www.rbi.org.in/scripts/FAQView.aspx?Id=33

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