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Who is a
non-resident Indian (NRI)? |
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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. (Persons posted
in U.N. organisations and officials deputed abroad by
Central/State Governments and Public Sector undertakings
on temporary assignments are also treated as
non-residents). Non-resident foreign citizens of Indian
Origin are treated on par with non-resident Indian
citizens (NRIs) for the purpose of certain facilities. |
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Who is a person
of Indian Origin? |
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For the
purposes of availing of the facilities of opening and
maintenance of bank accounts and investments in
shares/securities in India.
A foreign citizen (other than a citizen of Pakistan or
Bangladesh) is deemed to be of Indian origin, if, he, at
any time, held an Indian passport, or he or either of his
parents or any of his grand parents was citizen of India
by virtue of the Constitution of India or Citizenship Act,
1955 (57 of 1955).
Note: A spouse (not being a citizen of Pakistan or
Bangladesh) of an Indian citizen or of a person of Indian
origin is also treated as a person of Indian origin for
the above purposes provided the bank accounts are opened
or investments in shares/securities in India are made by
such persons only jointly with their NRI spouses.
For
investments in immovable properties.
A foreign citizen (other than a citizen of Pakistan,
Bangladesh, Afghanistan, Bhutan, Sri Lanka, or Nepal), is
deemed to be of Indian origin if,
He held an
Indian passport at any time, or
he or his father or paternal grand-father was a citizen of
India by virtue of the (Constitution of India or the
Citizenship Act, 1955 (57 of 1955). |
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Can such property be sold without the permission of
Reserve Bank? |
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Yes. Reserve
Bank has granted general permission for sale of such
property. However, where the property is purchased by
another foreign citizen of Indian origin, funds towards
the purchase consideration should either be remitted to
India or paid out of balances in NRE/FCNR accounts.
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Can sale proceeds of such property if and when sold be
remitted out of India? |
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In respect of
residential properties purchased on or after 26th May
1993, Reserve Bank considers applications for repatriation
of sale proceeds up to the consideration amount remitted
in foreign exchange for the acquisition of the property
for two such properties. The balance amount of sale
proceeds if any or sale proceeds in respect of properties
purchased prior to 26th May 1993, will have to be credited
to the ordinary non-resident rupee account of the owner of
the property. |
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Can foreign citizens of Indian origin acquire commercial
properties in India? |
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Yes. Under the
general permission granted by Reserve Bank properties
other than agricultural land/farm house/plantation
property can be acquired by foreign citizens of Indian
origin provided the purchase consideration is met either
out of inward remittances in foreign exchange through
normal banking channels or out of funds from the
purchasers' 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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Can sale proceeds of such property be remitted out of
India? |
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Yes.
Repatriation of original investment in respect of
properties purchased by foreign citizens 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 instalment of
consideration amount, whichever is later. Applications for
the purpose are required to be made to the Central Office
of Reserve Bank within 90 days of the sale of property in
form IPI 8. |
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