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home guide  -  nri
 
 
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1) What are the facilities provided by Adarsh to NRI investors?
 
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.
 
2) Does Adarsh help in renting or selling properties for NRI’s ?
 
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.
 
3) What are the documents an NRI would be required to bring along while planning to buy an Adarsh property?
 
It is advisable that an NRI customer keeps his NRO account number handy, while planning to buy an Adarsh property.
 
4) Does Adarsh arrange for site visit if the NRI wants it to be arranged for 2 or more Adarsh properties?
 
Yes, Adarsh arranges for site visits.
 
5) Any other assistance provided by Adarsh
 
Executives maintain regular contact with the clients and assist them even after the flat/villa is occupied.
 
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.
 
Indian Citizen Resident Outside India may:
  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
 
5) Who is a Non-Resident Indian (NRI)?
 
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).
 
6) Who is a person of Indian Origin (PIO)?
 
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.
 
7) What is an OCB?
 
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%
 
8) Is there a limit to the number of investment in acquiring commercial properties in India?
 
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.
 
9) Can a NRI invest in immovable property in India?
 
Ans: Yes, a NRI can definitely invest in immovable property in India.
 
10) Can foreign citizen of Indian Origin acquire or dispose of residential property by way of gift?
 
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.
 
11) Can immovable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India?
 
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.
 
12) Can foreign citizen of Indian Origin acquire commercial properties in India?
 
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.
 
13) Can they dispose of such property?
 
Ans: Yes.
 
14) Can sale proceeds of such property be remitted out of India?
 
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.
 
Q15) Can the properties (residential/commercial) be given on rent if not required for immediate use?
 
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.
 
16) Can NRIs obtain loans for acquisition of house/flat for residential purpose from authorized dealers/financial institutions providing housing finance?
 
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.
 
17). Can Indian companies grant loans to their NRI staff?
 
Ans: Reserve Bank permits Indian Firms/Companies to grant housing loans to their employees deputed abroad and holding Indian passports subject to certain conditions.
 
18). While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?
 
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.
 
If you are an NRI or a Property Buyer/Investor you need to understand your Investment Horizons in Real Estate pretty well.
 
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.
 
19). What are the options available for obtaining guarantors while applying for a HDFC/LIC loan
 
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.
 
20). What are the criteria regarding avail of home loans for NRIs in India?
 
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.
 
21).Can an NRI give a Power of Attorney to a person in India for completion of loan formalities on their behalf?
 
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.
 
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.
 
Q22). How much loan can one get?
 
Ans: You can get a Home Loan of up to 85% of the Total Consideration Value.
 
Q23). What are the conditions if the power of attorney is being executed outside India?
 
Ans: The attorney should preferably be a resident of India.
 
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
 
24) Are foreign citizens of India eligible to acquire commercial properties inIndia?
 
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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