| Q1. |
Who
is a non-resident Indian (NRI)? |
| Ans. |
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.
organisation 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). |
| Q2. |
What
is an OCB? |
| Ans. |
Overseas Corporate Bodies (OCBs) are
bodies predominantly owned by individuals of Indian
nationality or origin resident out side Indian and include
overseas companies, partnership firms, societies and
other corporate bodies which are owned, directly or
indirectly, to the extent of atleast 60% by individuals
of Indian nationality or origin resident outside India
as also overseas trust in which atleast 60% of the beneficial
interest is irrevocably held by such persons. Such ownership
interest should be actually held by them and not in
the capacity as nominees. The various facilities granted
to NRIs are also available with certain exceptions to
OCBs so long as the ownership/beneficial interest held
in them by NRIs continues to be atleast 60%. |
| Q3. |
Are
OCBs required to produce any certificate regarding ownership/beneficial
interest in them by NRIs? |
| Ans. |
Yes. In order to establish that the ownership/beneficial
interest in any OCB held by NRIs is not less than 60%,
the concerned body/trust is required to furnish a certificate
from an overseas auditor / chartered / accountant /certified
public accountant in form OAC where the ownership/beneficial
interest is directly held by NRIs, and in form OAC 1
where it is held indirectly by NRIs and further that
such ownership interest is actually held by them and
not in the capacity as nominees. |
| Q4. |
What
are the various facilities available to NRIs/OCBs? |
| Ans. |
NRIs/OCBs are granted the followings
facilities:
1. Maintenance of bank accounts in India.
2. Investments in securities/shares of, and deposits
with, Indian firms/companies.
3. Investments in immovable properties in India.
Details of these facilities are given in Chapters II,III
and IV. |
| Q5. |
Do
non-resident Indian citizens require permission of Reserve
Bank to acquire Residential/Commercial property in India? |
| Ans. |
No. |
| Q6. |
Do
foreign citizens of Indian origin require permission
of Reserve Bank to purchase immovable property in India
for their residential use? |
| Ans. |
Yes. However, Reserve Bank has granted
general permission to foreign citizens of Indian origin
whether resident in India or abroad, to purchase immovable
property in India for their bona fide residential purpose.
They are therefore, not required to obtain separate
permission of Reserve Bank. |
| Q7. |
In
what manner the purchase consideration for the residential
immovable property should be paid by foreign citizens
of India origin under the general permission? |
| Ans. |
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. |
| Q8. |
What
are the formalities required to be completed by foreign
citizens of Indian origin for purchasing residential
immovable property in India under the general permission? |
| Ans. |
They are required to file a declaration
in form IPI 7 with the Central Office of Reserve Bank
at Mumbai within a period of 90 days from the date of
purchase of immovable property or final payment of purchase
consideration along with a certified copy of the document
evidencing the transaction and bank certificate regarding
the consideration paid. |
| Q9. |
Can
such property be sold without the permission of Reserve
Bank? |
| Ans. |
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 oridinary non-resident
rupee account of the owner of the property. |
| Q10. |
Are conditions
required to be fulfilled if repatriation of sale proceeds
id desired? |
| Ans. |
Applications for repatriation of sale
proceeds are considered provided the sale takes place
after three years from the date of final purchase deed
or from the date of payment of final instalment of consideration
amount, whichever is later. |
| Q11. |
What is the procedure
for seeking such repatriation? |
| Ans. |
Applications for necessary permission
for remittance of sale proceeds should be made in from
IPI 8 to the Central Office of Reserve Bank at Mumbai
within 90 days of the sale of the property. |
| Q12. |
Can foreign citizens
of Indian origin acquire or dispose of residential property
by way of gift? |
| Ans. |
Yes. Reserve Bank has granted general
permission to foreign citizens of Indian origin to acquire
or dispose of properties up to two house by way of gift
from or to a relative who may be an Indian citizen or
a person of Indian origin whether resident in India
or not, provided gift tax has been paid. |
