created by
Rajesh Dhruva
NRI- Immovable Properties- Definitions
NRI - Immovable Properties – Definitions
1. Effective from 1st june,2000, Foreign Exchange Management Act,1999 [ FEMA ] has replaced Foreign Exchange Regulation Act,1973 [ FERA ].
As such all investments of overseas Indians are governed under FEMA.
As such all investments of overseas Indians are governed under FEMA.
2. Non Resident Indians - being Indian Citizens & Foreign Citizens of Indian Origin, residing abroad, can freely acquire & transfer immovable properties in India, subject to certain restrictions laid down under Foreign Exchange Management Act, 1999 (FEMA).
Acquisition by way of purchase, sale and transfer of immovable properties other than agricultural land, plantations and farm-house properties in India by Non-Resident Indians [NRIs] being overseas Indian citizens as also foreign citizens of Indian origin are governed vide regulations enacted under Foreign Exchange Management Act,1999.
Acquisition by way of purchase, sale and transfer of immovable properties other than agricultural land, plantations and farm-house properties in India by Non-Resident Indians [NRIs] being overseas Indian citizens as also foreign citizens of Indian origin are governed vide regulations enacted under Foreign Exchange Management Act,1999.
3. A "Non-Resident Indian" [ NRI], in context of these regulations is a person residing outside India who may be an Indian citizen or a foreign citizen of Indian origin.
4. A “Person of Indian origin" [ PIO ) in context to these regulations is defined as an individual who at any time held an Indian passport, or who himself or his father or grandfather was a citizen of India Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan are excluded from the definition of a PIO.
5. Acquisition of agricultural land, plantation and farmhouse properties by way of purchase or gift by NRIs is prohibited and the same is permissible only by way of inheritance.
6. Although immovable property is not defined, the term will include under normal parlance :
.01 Residential property being house property, bungalow, flat, apartment and all other kinds of residential properties.
.02 Commercial property being shop, office, show rooms etc.
.03 Industrial property being factory premises, godowns etc.
.04 Land for construction of any of the above properties.
7. Acquisition can be made by way of :
.01 purchase
.02 receipt as a gift.
.03 by way of inheritance
.04 share of joint property received upon partition of family/property etc.
8. Transfer:Although transfer is not defined under applicable Regulations, the definition under FEMA ,99 will apply & include :
.01 sale for consideration
.02 exchange of property,
.03 gift of property.
.04 relinquishment of right in a joint property etc.