An Indian citizen resident outside India does not require any special permission to buy immovable property in India.
Mode of payment?
However, no payment of the purchase price can be made in foreign currency. The buyer make the purchase in rupees only.
IS there any restrictions on purchasing commercial purposes ?
An NRI may purchase for either residential or commercial purposes.
How many properties can a NRI/ PIO purchase under the general permission?
There is no limit in the amount and/or number of immovable properties that can be bought.
Can a non-resident inherit immovable property in India?
Yes, a person resident outside India i.e. i) an NRI; ii) a PIO; and iii) a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India.
Home loans, an option?
Most definitely. The RBI allows NRIs to take home loans for buying property in India. You can also take a loan for repairs and renovations of your home.
You can pay the EMIs in any one of the following ways:
- By remitting the money from your foreign bank account through regular banking channels
- By issuing post dated cheques or Electronic Clearance Service (ECS) from your NRE, NRO or FCNR Account
- Out of the rental income that this property earns
- Cheques issued from your local relative's bank account
Can NRI/PIO avail of housing loan in Rupees from his employer in India?
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
What income taxes are applicable on house properties in India?
According to the Indian Income Tax Act, if a person (resident or NRI) owns more than one house property, only one of them will be deemed as self-occupied. There will be no income tax on a self-occupied property. The other one, whether you rent it out or not, will be deemed to be given on rent. If you have not given the second property on rent, you will have to calculate deemed rental income on the second property (based on certain valuations prescribed by the income tax rules) and pay the tax thereof.