Facts For NRI's In Investment

Investment

Rama Group is now offering NRIs an opportunity to invest in India. To help you with the process here are a few facts that will give you a better insight.

• An Indian Citizen who stays abroad for employment or carries out business outside India is an NRI. A person who is not resident in India for a period over 182 days is a non-resident Indian. Non-resident Indians also include people posted in U.N. organizations and officials deputed abroad by Central/State governments and Public Sector undertakings on temporary assignments.

• According to the provisions of the Foreign Exchange Management Act, a Person of Indian Origin (PIO) is an individual who at any time has held an Indian passport, or he or his father or his grandfather was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955).

• NRIs and PIOs do not require permission from RBI to acquire residential / commercial premises in India. However, this does not include agricultural or land or farm house and plantation properties.

• The sale proceeds of immovable property can be remitted out of India only when certain conditions have been fulfilled.

• NRIs can obtain loans for acquisition of residential premises from authorized dealers and financial institutions. However repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the borrower's NRE/FCNR/NRO accounts.

• The RBI permits Indian companies to grant housing loans to their employees deputed abroad, holding Indian passports, subject to certain conditions.

• The RBI granted permission to NRIs and PIOs to gift residential or commercial premises to relatives, registered charitable trusts and organizations in India, subject to compliance of the condition the provisions of other applicable laws.

• The RBI has also granted permission to those who want to let out any immovable property in India. The rental income or proceeds of any such income are eligible for repatriation subject to payment of taxes and production of a certificate issued by a chartered accountant with the guidance of a bank for completion of formalities.

• NRIs and PIOs can make payments of purchases either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR/NRO accounts maintained with banks in India.

• Applications for repatriation of sale proceeds are considered when the sale takes place after three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

• Applications for necessary permission for remittance of sale proceeds should be made and NRIs and PIOs must the IPI 8 form must be submitted to the Central Office of the RBI in Mumbai within 90 days of the sale of the property.