Whether PAN Card (Permanent Account Number) from Indian Income Tax Authority is required to be obtained before buying property in India? And how to obtain PAN Card? Can a Branch Office of a Foreign Company purchase Immovable property in India?

Ans.   PAN or Permanent Account Number is a ten-digit alphanumeric code generated by the India’s “Income Tax Department”, that is required by anyone who wish to conduce any kind of financial transaction in India. PAN is required for NRIs or PIOs living abroad  who wish to make investment in India, buy property in India, open Bank account in India, rent out property in India etc

Can NRI/PIO/OCI Repatriate the sale proceeds of immovable property? If so what are the terms?

Ans. In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. NRI/PIO are allowed to repatriate an amount upto USD 1 Million per annum.

Is there any restriction on number of residential or commercial properties in respect of which sale proceeds can be repatriated by NRI/PIO/OCI?

Ans. Yes. Any two properties can be sold in a financial year and the amount can be repatriated subject to maximum USD 1 Million.

What are the Due Diligence checks before buying property in India?

Ans.   Several Due Diligence checks can be carried out for safe purchase. Such as clear and marketable title, location, whether all statutory permissions have been obtained by the Builder or Developer.

How can NRI, PIO, Foreigner or Overseas Citizen of India make payment for purchase of residential/commercial property in India?

Ans.  Payment can be made out of (a) funds remitted to India through Normal Banking Channel or (b) funds held in NRE / FCNR (B) / NRO account maintained in India.

Can NRI/PIO/OCI/Foreign National sale his residential / commercial property in India?

Ans.  Yes. NRI /PIO/ Foreign National can sell property in India to a person resident in India or to an NRI or a PIO.

What are the facilities for Returning NRI under Foreign Exchange Management Act?

Ans.  Returning NRIs are offered a bouquet of facilities under Foreign Exchange Law in India. The can continue hold their assets abroad. They can almost “ have their cake and eat it too”.

Can residential or commercial property be Mortgaged?

Ans. Yes, NRI/PIO can mortgage a residential or commercial property to:

(a)   An Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank.

(b)   A party abroad, with the prior approval of the Reserve Bank.

Can NRI/PIO/Foreigner gift his residential / commercial property or receive a gift of property in India?

Ans.  Yes. NRI PIO may gift his property. Yes, NRIs or PIOs can acquire property by way of gift. Agricultural land or plantation or farm house in India cannot be acquired by way of gift.

Can NRIs/PIOs/OCIs let out the property on rent or Lease or leave and License? How safe it is? What is the Law applicable?

Ans. NRI/PIO can let out his property to any person in India. Tenancy  Laws are different in each state in India.

What are the legal obligations of Builder or Developers towards purchase of property?

Ans. Obligation of Builder or Developer is to give clear and marketable title to the buyer. In India various laws are governing property transaction.

Take us through some of the laws if there are any for NRI/PIO or OCI to buy Real Estate in India?

Ans.  Transfer of property Act, Indian Contract Act, Rent Control Act and various laws relating to properties.

What are the steps for investments in Immovable Property in India?

Ans. If possible appoint a local Lawyer who will examine the title of the property and advice accordingly. Opening a Bank account and obtaining Pan Card is compulsorily.

What are rules for selecting Home Loan? Can NRI/PIO/OCI avail of Housing Loan in Rupees from Housing Finance Corporations of Banks in India? How can such Loan be repaid?

Ans.  Yes. NRI/ PIO can avail Housing Loan in Rupees from an Authorized Dealer or Housing Finance Institution.

Can NRI/PIO avail of Housing Loan in Rupees from his employer in India?

Ans. Yes, subject to certain terms and conditions given in Regulation 8A of Notification No. FEMA 4/2000-RB dated May 3, 2000 and A.P. (DIR         Series) Circular No. 27 dated October 10, 2003.

Can NRI/PIO/OCI purchase Agriculture Land or Farm House or Plantation in India?

Ans.  No. Since general permission is not available to NRI/PIO/OCI to purchase agriculture land or farm house or plantation in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.

Can NRI/PIO/OCI or Foreign National inherit immovable property in India?

Ans.        Yes, NRI/PIO/OCI or Foreign National can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank for inheriting immovable property in India.