Property: 10 things you must know

New Delhi: To get a great property in India, you need to know the rules. Vinit Deo outlines them for you.

1.Which categories of persons can purchase immoveable property in India?

Only Non Resident Indians and Persons of Indian Origin are allowed to purchase immoveable property in India

What is the definition of Person of Indian origin?

PIO means an Individual who at ant time held an Indian passport or who or whose parents or grand-parents were at any point citizens if India at any point in time. However citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan are not eligible to be called PIOs even if they satisfy the above conditions.

Is there any restriction on the type of property that can be purchased?

No. NRIs/PIOs can purchase both commercial and residential properties in India

How many properties can the NRIs/PIOs purchase?

There are no restrictions on the number of properties that can be purchased.

Do NRIs/PIOs have to file any declaration / take permission of the Reserve Bank of India for the purchase of immoveable property?

No. There is no declaration / return to be submitted to the submitted to the Reserve bank of India either before or after the purchase.

Can the NRI/PIO take a loan from an Indian bank in rupees for purchase of immoveable property in India?

Yes.

Can the NRI/PIO/foreign citizen of non-Indian origin purchase agricultural land, plantation or farm house in India

No.

Can the NRI/PIO give the property on rent ?

Yes. The rental income can be credited to the NRE/NRO Account and even remitted out of India.

Can foreign citizens of non-Indian origin purchase property in India?

No. foreign citizens i.e. individuals who are neither NRIs nor PIOs cannot purchase immoveable property in India.

10. Can foreign citizens of non-Indian origin take a property on lease in India?

Yes. The foreign citizens of non-India origin can take a property on lease without permission of the RBI if the least period does not exceed 5 years.

The author, Vinit Deo is a Chartered Accountant and CEO of ITLogy FPO Services Pvt. Ltd