TaxTMI 
TaxTMI 
Master Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin (Updated upto March 11, 2015)
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....he regulatory framework and instructions issued by the Reserve Bank in this regard have been compiled in this Master Circular. The list of underlying circulars/notifications is furnished in Appendix. 2. This Master Circular may be referred to for general guidance. The Authorised Dealer Category - I banks and Authorised banks may refer to respective circulars / notifications for detailed information, if so needed. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (C D Srinivasan) Chief General Manager INDEX 1 Introduction 2 Acquisition and Transfer of Immovable Property in India ....
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.... in India. He may transfer any immovable property (other than agricultural land or plantation property or farm house) to an Indian Citizen resident outside India or a PIO resident outside India. (iii) Payment for Acquisition of Immovable Property NRIs can make payment for acquisition of immovable property (other than agricultural land/ plantation property / farm house) out of: * Funds received in India through normal banking channels by way of inward remittance from any place outside India or by debit to his NRE / FCNR(B) / NRO account. * Such payments cannot be made either by traveller's cheque or by foreign currency notes or by other mode except those specifically mentioned above. (iv) A NRI who has purchased residential / commerci....
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.... A PIO can make payment for acquisition of immovable property in India (other than agricultural land / farm house / plantation property): * By way of purchase out of funds received by inward remittance through normal banking channels or by debit to his NRE / FCNR(B) / NRO account. * Such payments cannot be made either by traveller's cheque or by foreign currency notes or by other mode other than those specifically mentioned above. (v) A PIO who has purchased residential / commercial property under the general permission, is not required to file any documents with the Reserve Bank. 3. Acquisition of immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals In terms of Regulation 5A of the Foreign Exchange Management (Acq....
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....able property (A) Immovable property acquired by way of purchase a. A person referred to in sub-section (5) of Section 6 of the Foreign Exchange Management Act, or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section. b. In the event of sale of immovable property other than agricultural land / farm house / plantation property in India by a person resident outside India who is a citizen of India or a person of Indian origin, the Authorised Dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely: (i) the immovable property was acquired by the seller....
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....of deed of settlement made by either of his parents or a close relative (as defined in Section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler, the original deed of settlement should be produced for the remittance. All remittances will be subject to payment of applicable taxes as prescribed by CBDT from time to time. Where the remittance as above is made in more than one installment, the remittance of all such installments shall be made through the same Authorised Dealer. 6. Refund of purchase consideration Refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for p....
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....ection 2(v) of the Foreign Exchange Management Act, 1999. In this connection, he has to satisfy the condition of period of stay. The type of visa granted should clearly indicate the intention to stay in India for an uncertain period to determine his residential status in terms of section 2(v) FEMA, 1999.(Press Release dated February 1, 2009 issued by Government of India is enclosed as Annex-1). * Foreign nationals of non-Indian origin who have acquired immovable property in India by way of inheritance with the specific approval of the Reserve Bank or have purchased the immovable property with the specific approval of the Reserve Bank cannot transfer such property without the prior permission of the Reserve Bank. 9. Payment of taxes - Any....