Before buying immovable property:
Scrutinize all original payment documents. The title to the property may be single or joint ownership basis. In the event of any difficulty, a certified copy can always be obtained from local sub-registrar’s office on payment of a nominal fee. For more detail refer the documents to a lawyer who may certify that clear title can be passed on to the buyer.
Are Foreign Nationals of Indian origin allowed to purchase immovable property in India?
Yes, Foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India.
How many residential / commercial properties can NRI purchase under the general permission?
There are no restrictions on the number of residential / commercial properties that can be purchased.
Whether immovable property in India can be acquired by way of gift?
Yes, NRIs can freely acquire immovable property by way of gift. However the property can only be commercial or residential. Agricultural land / plantation property / farmhouse in India cannot be acquired by way of gift. A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India through gift.
What should be the method of payment for purchasing residential immovable property in India by Foreign Nationals of Indian origin 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 accounts maintained with banks in India.
Can the rental income from such property be remitted outside India?
No. Such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.