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home guide - nri |
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| 1) What are the
facilities provided by Adarsh to
NRI investors? |
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| Adarsh has a dedicated team
in place, to handle the NRI
customer queries. We provide
assistance on email and
telephone providing information
relating to projects, work in
progress, loan assistance, and
money transfers etc. A GPA is
also provided for the clients
benefit. |
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| 2) Does Adarsh help in
renting or selling properties
for NRI’s ? |
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Currently, Adarsh does not
provide any services relating to
renting or selling properties
for NRIs, however for our
clients we can put them on to
some agents for better
assistance. |
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| 3) What are the documents
an NRI would be required to
bring along while planning to
buy an Adarsh property? |
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| It is advisable that an NRI
customer keeps his NRO account
number handy, while planning to
buy an Adarsh property. |
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| 4)
Does Adarsh arrange for site
visit if the NRI wants it to be
arranged for 2 or more Adarsh
properties? |
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| Yes, Adarsh arranges for
site visits. |
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| 5)
Any other assistance provided by
Adarsh |
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| Executives maintain regular
contact with the clients and
assist them even after the
flat/villa is occupied. |
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| The table below explains the
policies and restrictions on
NRIs and PIOs defined by the
Foreign Exchange Management Act,
2000 on the acquisition and sale
of property. |
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|
Indian Citizen
Resident Outside India
may: |
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NRI |
PIO |
Resident |
| Purchase Property
From |
Yes |
Yes |
Yes |
| Sell
Property To |
Yes |
Yes |
Yes |
| Receive
Gift From |
Yes |
Yes |
Yes |
| Give
Gift To |
Yes |
Yes |
Yes |
|
Agricultural Property |
|
|
|
| Purchase
Property From |
No |
No |
No |
| Sell
Property To |
No |
No |
Yes |
| Receive
Gift From |
No |
No |
No |
| Give
Gift To |
No |
No |
Yes |
|
Person of India
Origin Resident outside
India may: |
| Purchase
Property From |
Yes |
Yes |
Yes |
| Sell
Property To |
No |
No |
Yes |
| Receive
Gift From |
Yes |
Yes |
Yes |
| Give
Gift To |
Yes |
Yes |
Yes |
|
Agricultural Property |
|
|
|
| Purchase
Property From |
No |
No |
No |
| Sell
Property To |
No |
No |
Yes |
| Receive
Gift From |
No |
No |
No |
| Give
Gift To |
No |
No |
Yes |
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| 5) Who is a Non-Resident
Indian (NRI)? |
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Ans: An Indian Citizen who
stays abroad for
employment/carrying on business
or vocation outside India or
stays abroad under circumstances
indicating an intention for an
uncertain duration of stay
abroad is a non-resident.
(Person Posted in U.N
organizations and official
deputed abroad by Central/State
Governments and Public Sector
undertakings on temporary
assignments are also treated as
non-temporary assignments are
also treated as non-residents). |
| Non-resident foreign
citizens of Indian Origin are
treated on par with non resident
Indian citizen (NRIs). |
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| 6) Who is a person of
Indian Origin (PIO)? |
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| Ans: A Person of Indian
Origin (PIO) is a citizen of any
other country but whose
ancestors were Indian nationals
at least four generations away. |
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| 7) What is an OCB? |
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| Ans: Overseas Corporate
Bodies (OCBs) are bodies
predominantly owned by
individuals of Indian
nationality or origin resident
outside India and include
overseas companies, partnership
firms, societies and other
corporate bodies which are
owned, directly or indirectly,
to the extent of at least 60% by
individuals of Indian
nationality or origin resident
outside India as also overseas
trusts in which at least 60% of
the beneficial interest is
irrevocably held by such
persons. |
| Such ownership interest
should be actually held by them
and not in the capacity as
nominees. The various facilities
granted to NRIs are also
available with certain
exceptions to OCBs as long as
the ownership/beneficial
interest held in them by NRIs
continues to be at least 60% |
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| 8) Is there a limit to
the number of investment in
acquiring commercial properties
in India? |
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| Ans: No, as far as quantity
of NRI investment is concerned
in real estate investment in
India there is no limit on the
number of investments can be
made in commercial properties in
India. |
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| 9) Can a NRI invest in
immovable property in India? |
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| Ans: Yes, a NRI can
definitely invest in immovable
property in India. |
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| 10) Can foreign citizen
of Indian Origin acquire or
dispose of residential property
by way of gift? |
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| Ans: Yes. Reserve Bank has
granted general permission to
foreign citizen of Indian Origin
to acquire or dispose of
properties up to two houses by
way of gift from or to a
relative who may be an Indian
Citizen or a person of Indian
origin whether resident in India
or not, subject to compliance
with applicable tax laws. |
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| 11) Can immovable
property held in India, be
transferred by way of gift to
relatives/registered charitable
trusts/organizations in India?
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| Ans: Yes. General permission
has been granted by Reserve Bank
to non-resident persons (foreign
citizen) of Indian Origin to
transfer by way of gift
immovable property held by them
in India to relatives and
charitable trust/organizations
subject to the conditions that
the provisions of any other law,
including Foreign Contribution
(Regulation) Act, 1976, as
applicable, are duly complied
with. |
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| 12) Can foreign citizen
of Indian Origin acquire
commercial properties in India?
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| Ans: Yes. Under the general
permission granted by Reserve
Bank properties other than
agricultural land/farm
house/plantation property can be
acquired by foreign citizen of
Indian Origin provided the
purchase consideration is met
either out of inward remittance
in foreign exchange through
normal banking channels or out
of funds from the purchaser's
NRE/FCNR accounts maintained
with banks in India and a
declaration is submitted to the
Central Office of Reserve Bank
in Form IPI 7 within a period of
90 days from the date of
purchase of the property/final
payment of purchase
consideration. |
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| 13) Can they dispose of
such property? |
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| Ans: Yes. |
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| 14) Can sale proceeds of
such property be remitted out of
India? |
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| Ans: Yes. Repatriation of
original investment in respect
of properties purchased by
foreign citizen of Indian Origin
on or after 26th May 1993 will
be allowed to be remitted up to
the consideration amount
originally remitted from abroad
provided the property is sold
after a period of three years
from the date of the final
purchase deed or from the date
of payment of final installment
of consideration amount,
whichever is later. Application
for the purpose is acquired to
be made to the Central Office of
Reserve Bank within 90 days of
the sales of property in Form
IPI 8. |
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| Q15) Can the properties
(residential/commercial) be
given on rent if not required
for immediate use? |
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| Ans: Yes. Reserve Bank has
granted general permission for
letting out any immovable
property in India. The rental
income or proceeds of any
investment of such income are
eligible for repatriation. |
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| 16) Can NRIs obtain loans
for acquisition of house/flat
for residential purpose from
authorized dealers/financial
institutions providing housing
finance? |
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| Ans: Reserve Bank has
granted general permission to
certain financial institutions
providing housing finance e.g.
HDFC, LIC Housing Finance Ltd.,
etc., and authorized dealers to
grant housing loans to
non-resident Indian nationals
for acquisition of a house/flat
for self-occupation subject to
certain conditions. The purpose
of the loan, margin money and
the quantum of loan will be at
par with those applicable to
housing loans to residents.
Repayment of loan should be made
within a period not exceeding 15
years out of inward remittance
or out of funds held in the
investor's NRE/FCNR/NRO
accounts. |
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| 17). Can Indian companies
grant loans to their NRI staff?
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| Ans: Reserve Bank permits
Indian Firms/Companies to grant
housing loans to their employees
deputed abroad and holding
Indian passports subject to
certain conditions. |
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| 18). While purchasing
real estate most developers
demand a Power of Attorney in
their favor, is there a way to
avoid it? |
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| Ans: One can choose not to
grant the Power of Attorney (POA)
to the developers. However this
will mandate the mailing of all
documents to your foreign
residence and associated time
delays. A good compromise is to
grant the POA to the builder
only for specific necessary
items. |
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| If you are an NRI or a
Property Buyer/Investor you need
to understand your Investment
Horizons in Real Estate pretty
well. |
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| Term of Investment - This is
important as you need to hold on
for at least 1 to 3 Years for a
decent capital appreciation and
if you sell your property within
3 years you are in for a short
term capital gains which is at
par with the Income Tax rules of
nearly 30 to 35% as applicable.
It is better to stay invested
for 3 years and then plan the
next investments with Capital
Gains etc. |
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| 19). What are the options
available for obtaining
guarantors while applying for a
HDFC/LIC loan |
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| Ans: One will need a
guarantor for a loan mainly for
collateral security. The
guarantor will have to
demonstrate appropriate net
worth to cover for the loan.
Usually one can have a guarantor
in any city where the loan
issuer has a branch. Talk to
loan issuers they will work
something out for NRIs and
foreign banks. |
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| 20). What are the
criteria regarding avail of home
loans for NRIs in India? |
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| Ans: According to Reserve
Bank guidelines for NRIs |
| The loan amount shall not
exceed 85% of the cost of the
dwelling unit. |
| Own contribution, which is
the cost of dwelling unit
financed less the loan amount,
can be met from direct
remittances from abroad only
through normal banking channels,
your Non-Resident (External) [NR
(E)] Account and /or
Non-Resident (Ordinary) [NR (O)]
account and /or Non-Resident
Special Rupee account [NRSR] in
India. |
| Repayment of the loan,
comprising of the principal and
interest including all the
charges are to be remitted from
abroad only through normal
banking channels, your
Non-Resident (External) [NR (E)]
Account and /or Non-Resident
(Ordinary) [NR (O)] account and
/or Non-Resident Special Rupee
account [NRSR] in India. |
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| 21).Can an NRI give a
Power of Attorney to a person in
India for completion of loan
formalities on their behalf? |
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| Ans: Yes. We very well
understand that as an NRI you
have a different set of needs
with respect to your real estate
management and investment
requirements and we also
understand that it needs special
set of services to cater to your
requirements. The good news from
India is that government has
allowed 100% repatriation for
NRIs. |
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| Reserve Bank has granted
general permission to certain
financial institutions providing
housing finance e.g. HDFC,LIC
Housing Finance Ltd.,etc. to
grant housing loans to
non-resident Indian nationals
for acquisition of houses/flats
for self-occupation subject to
certain conditions. |
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| Q22). How much loan can
one get? |
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| Ans: You can get a Home Loan
of up to 85% of the Total
Consideration Value. |
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| Q23). What are the
conditions if the power of
attorney is being executed
outside India? |
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| Ans: The attorney should
preferably be a resident of
India. |
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| The power of attorney should
be executed on a stamp
paper/plain paper as the case
may be as applicable in the
country in which the power of
attorney is executed. |
| Any authorized official of
the Indian
Embassy/Consulate/Trade
commissioner in the country
where the executants resides
should attest the signature of
the executants. |
| The attorney's signature
should be verified in India by
Notary Public or his employer or
his banker on a separate piece
of paper, which should be
submitted to SHFL together with
the power of attorney |
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| 24) Are foreign citizens
of India eligible to acquire
commercial properties inIndia? |
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| Ans: Yes, they are, but
under the general permission
granted by the Reserve Bank,
which are subject to further
terms and conditions. A
commercial property includes
properties other than
agricultural land/farm
house/plantation property. |
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