Welcome To Refinsolutions.com

Our Articles

Formalities for Acquisition of Immovable Property in India

[ 2013-03-18 06:46:50 ]

There is no ceiling on the number of immovable properties acquired or sold in India by NRIs and PIOs. However, NRIs/PIOs belonging to Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan require a prior approval of the Reserve Bank of India for acquiring Immovable Property in India.

It is mandatory to file a declaration of the acquired property with the Reserve Bank of India within 90 days of acquisition of property, on the prescribed Form – IPI 7.

IPI Forms

The Reserve Bank of India has issued IPI Forms for fresh acquisition and holding of Immovable Property in India by residents and Non Residents. The table below gives a brief applicability of IPI Forms.

Guidelines for Acquisition of Property in India by NRIs, PIOs, Foreigners

[ 2013-03-18 06:46:10 ]

Non Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Foreign Nationals of non-Indian Origin (Foreigners) can acquire Immovable Property as per the laws and legislations laid down by the Central Government.

Immovable Property Acquisition by NRIs and PIOs
NRIs and PIOs can acquire Immovable Property (either Residential or Commercial) in India by way of purchase, gift, inheritance, or share of joint property received upon partition of family/property, etc. as per the guidelines laid by the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000.

Acquisition by way of Purchase
Acquisition by way of Gift
Acquisition by way of Inheritance

Acquisition by way of Purchase

The Reserve Bank of India (RBI) has permitted the following categories of NRIs/PIOs to acquire Immovable Property (other than agricultural land, plantation or farm-house property) by way of purchase, provided the payment is made out of Foreign Exchange Inward Remittance or any Non Resident Bank Account in India, i.e., (Non Resident External (NR(E)), Foreign Currency Non Resident Account (FCNR(B)) or Ordinary Non Resident Rupee Account a/c (NRO) in connection with acquisition of Immovable Property in India:

A Non Resident who is a citizen of India
A Non Resident who is a Person of Indian Origin (PIO)
A Non Resident who has established in India a branch office or other place of business (excluding a liaison) office

There are no restrictions on the number of residential/commercial properties that can be purchased.

Acquisition by way of Gift

General permission is granted to acquire any Immovable Property (other than agricultural land, plantation or farmhouse property) by way of gift from a person (donor) who is:

A Person Resident in India, or
A Person Resident outside India (NRI) who is an Indian citizen or foreign citizen of Indian origin.

Provided that applicable Gift Tax if any has been paid at the time the immovable property is being gifted.

Acquisition by way of Inheritance

General permission is granted for inheritance of Immovable Property including agricultural land, plantation or farm-house property from:

A Person Resident in India, or
A Person Resident outside India who may be an Indian citizen or Foreign Citizen of Indian Origin provided such person had acquired the said property in accordance with the provisions of Foreign Exchange Law in force at the time of acquisition, i.e., FERA, 1973 or FEMA 1999.

Hence, agricultural land, plantation or farmhouse property can be acquired by way of inheritance only.

Immovable Property Acquisition by Foreign Nationals of Non-Indian Origin

The residential status of a foreign national of non-Indian origin determines the ability to acquire immovable property in India. Thus, Foreign Nationals of non-Indian origin can be further divided into

Foreign Nationals of Non-Indian Origin, Resident Outside India
Foreign Nationals of Non-Indian Origin, Resident In India

Scheme of One Percent Interest Subvention on Housing Loan up to Rs. 10 lakhs

[ 2013-03-18 06:45:20 ]

The Government of India, Ministry of Finance had announced a scheme of 1% interest Subvention on Housing Loan up to Rs.10 lakhs. An allocation of Rs.1,000 crores was also announced for the purpose. Pursuant to the above-mentioned announcement, the Government of India has approved a Scheme of Interest Subvention on Housing Loan up to Rs.10 lakhs, provided the cost of unit does not exceed Rs.20 lakhs. Department of Financial Services has issued guidelines for implementation of the Scheme.

The objective of the Scheme is to provide Interest Subsidy on Housing Loan as a measure to improve affordability of housing to eligible borrowers and generate additional demand for credit. The Scheme will be implemented throughout the country and will be in operation for a period of 1 year beginning Oct 1, 2009 and upto Sept 30, 2010. Interest Subsidy of 1% will be applicable for first 12 months of eligible loans sanctioned and disbursed during the currency of the scheme viz. Oct 1, 2009 to Sept 30, 2010.

It will be implemented through Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with National Housing Bank (NHB). The Reserve Bank of India (RBI) and NHB will be the nodal agencies for the Scheme for SCBs and HFCs respectively. After sanctioning and disbursing the eligible loans, the implementing agencies will claim disbursement of subsidy from respective nodal agency on monthly basis.

For Intrest Rate Chart Click here »