Property in India by NRI Questions and Answers

By | August 14, 2015

Property in India by NRI

Question: Can NRI hold and retain property and security acquired when he has resident of India ?

As per section 6(5) of FEMA, a person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India, or inherited from a person who was resident in India.

Question: Can a person resident outside India  transfer  the security or immovable property which he had inherited form a person who was resident of India ? Is there any permission from RBI is required ?

As per section 6(5) of FEMA, a person resident outside India may hold, transfer or invest in Indian security or any immovable property situated in India, inherited from a person who was resident in India. Thus, transmission by inheritance to NRI or non-resident is permissible without permission of RBI.

Question:  Can the NRI / PIO get the loan in Rupees ?

Authorised dealers can grant rupee loans to NRI/PIO for housing and other purposes.

Question: Can a resident individual  give Loans/gifts/medical assistance to NRI who is close relative ?

A resident individual can give loans, give gifts and also incur his travelling, boarding and medical expenses. The non-resident can also repay the loans given by Banks to the NRI, who is a close relative. The details are contained in RBI circular Nos. 17 to 19 dated 16-9-2011

Question :Can the NRI  retain the Income and sale proceeds of assets held abroad  after he returns to India,?

If NRI permanently returns to India for permanent settlement, the income and sale proceeds of assets held abroad need not be repatriated to India – RBI circular No. 37 dated 19-10-2011 (This is only a clarification and indeed the provision applied earlier also

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