Acquisition and Transfer of Immovable Property in India
The acquisition and transfer of immovable property in India by Non-resident Indians (NRI) / persons of Indian origin (POI)/overseas citizens of India (OCI) are governed by the Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2018. The acquisition and transfer of immovable property in India by Non-resident have been clearly notified by the Reserve Bank of India vide its Notification. FEMA 21(R)/2018-RB posted on March 26, 2018.
Can a Non-Resident Indian/person of Indian origin or an overseas citizen of India acquire or transfer property in India?
(a) An NRI/POI/OCI may acquire immovable property in India other than agricultural land/farmhouse or plantation property;
Provided that the consideration, if there will be any for the transfer, shall make out of:-
(i) Funds that will be received out of the banking channels.
(ii) Funds that will be held in a Non-resident account.
Provided payment for any transfer of immovable property shall be made either by the way of traveler’s cheque or by foreign currency notes or any other permitted mode.
(b) NRI will be allowed to acquire any immovable property other than agricultural land/farmhouse/plantation property by the way of gift from a relative as defined under 2(77) of the Companies Act 2013.
(c) NRI can acquire any immovable property in India by way of inherence from a person resident outside India.
(d) NRI can transfer any immovable property in India to a person who is resident in India.
(e) NRI can transfer any immovable property other than agricultural land/farm house or plantation property to an NRI or an OCI.
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Acquisition of Immovable Property is done for carrying on a permitted activity
A Person who is resident in India will be allowed to acquire any immovable property in India only when all the applicable laws, rules, regulations, or directions are duly complied with and the person has filed the declaration for the same to the RBI within a period of not less than 90 days from the date of such acquisition.
Provided that no person of some other specific countries shall acquire any immovable property other than on lease for a term not exceeding 5 years without taking approval from the Reserve Bank of India.
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