1) Who is a NRI under the provisions of Foreign Exchange Management Act?
Generally, an Indian Citizen who is not resident in India for a period over 182 days is a non-resident Indian. Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents.
2) Do non-resident Indian citizens require permission of The Reserve Bank to acquire residential/commercial property in India?
3) In what manner should the purchase consideration for residential immovable property be paid by NRI under the general permission?
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR/NRO accounts maintained with banks in India.
4) Can the properties held by NRIs in India be sold without the permission of Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of NRI properties. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
5) Are any conditions required to be fulfilled if repatriation of sale proceeds from NRI properties in India is desired?
Applications for repatriation of sale proceeds of property in India are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount on the NRI property, whichever is later.