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Page 34 - Customer Manual01
P. 34

12. NRI CORNER






          1.  Who is a Non - Resident Indian (NRI)?                                                                      7.   Can the foreign citizens of Indian origin sell property without the permission of RBI

             A citizen of India who stays abroad for employment or for carrying out any business for an                      (Reserve Bank of India)?
             uncertain  period of  time (more than  180 days in a financial year)  is considered as  a                       Reserve Bank of India has given permission to foreign citizens of Indian origin to sell a
             non-resident. Non-resident foreign citizens of Indian Origin (PIOs) are treated on par with                     property. However, wherever the property is purchased by them, the funds towards the
             NRI's and are offered the same facilities.                                                                      purchase consideration should be either remitted to India or the paid out of balances in
                                                                                                                             NRE/FCNR accounts.
          2.  Who is a PIO?

             Person of Indian Origin (PIO) for the purpose of acquiring immovable property in India as given             8.  Can foreign citizens of Indian origin acquire or dispose of residential property by way of
             under:- “Person of  Indian  origin’ means  an  individual (not being a  citizen  of  Pakistan  or               gift?
             Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who at any time,                   Reserve Bank of India has given permission to foreign citizens of Indian origin to acquire or
             held an Indian passport; or who or either of whose father or mother or whose grandfather or                     dispose of a residential property by way of gift from or to any relative who is a citizen of India
             grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act,               or a person of Indian origin (in case he is not the citizen of India) subject to compliance with
             1955 (57 of 1955)”                                                                                              applicable tax laws.

          3.  What is an OCB?                                                                                            9.  Can foreign citizens of Indian origin acquire commercial properties in India?
             OCB (Overseas Corporate Bodies) are the bodies that are mainly owned by the individuals of                      Reserve Bank of India has given permission to foreign citizens to acquire commercial
             Indian nationality or origin resident outside India. OCB includes all the overseas companies,                   properties in India other than agricultural land/farmhouse/ plantation property.
             trusts, partnership firms, societies and corporate bodies which are indirectly or directly owned
             by at least 60% of individuals of Indian nationality or origin resident outside India. However, the         10.  Can  the  properties  (residential/commercial)  be  given  out  on  rent  if  not  required  for
             ownership interest should be actually held by them and not by the nominees.                                     immediate use?

          4.  What are the various facilities available to NRI's?                                                            Reserve  Bank  of  India  has  given  permission to  rent  out  any  immovable
                                                                                                                             residential/commercial property in India.
             Various facilities offered to the NRI's are as follows:
             •  They can maintain their bank accounts in India                                                           11.  Are Indian companies allowed to grant loans to their NRI staff?
             •  They are allowed to invest in securities/shares/deposits of Indian companies and firms
             •  They are allowed to invest in immovable properties in India                                                  Reserve  Bank  of  India  has  given  permission  to  the  Indian  companies  or  firms  to  grant
                                                                                                                             housing loans to the NRI's. However, there are certain terms and conditions that are needed
          5.  Do non-resident Indian citizens need permission of RBI (Reserve Bank of India) to acquire                      to be met.
             residential and commercial property in India?
                                                                                                                         12.  How to pay stamp duty in Maharashtra?
             NRI's are not required to take any permission of RBI while acquiring any residential and                        According to the Maharashtra Stamp Act, 1958, stamp duty shall be paid along with
             commercial property in India                                                                                    registration fees to ensure the title of property in the purchaser’s name.

          6.  Do foreign citizens of Indian origin need permission of RBI (Reserve Bank of India) to                     13.  When should the stamp duty be paid according to the law in Maharashtra?
             purchase immovable property in India for their residential use?
                                                                                                                             In Maharashtra, the Maharashtra Stamp Act, 1958 is applicable to all the documents
             Reserve Bank of India has given permission to the foreign citizens of Indian origin to purchase                 executed or brought in the state for the purpose of chargeability of the stamp duties. All the
             immovable property in India for their residential use. Hence, they do not need to acquire any                   instruments chargeable with duty and executed by any person in this state are required to be
             additional permission.                                                                                          stamped before or at the time of execution or immediately thereafter or on the next working

                                                                                                                             day following the day of execution.
                                                                                                                         14.  What is the procedure to pay the stamp duty in case the document is executed out of India
                                                                                                                             and is to be used in Maharashtra?

                                                                                                                             It is compulsory to pay the stamp duty within three months from the date of receipt in India.
                                                                                                                             You will be required to produce the document before the District Registrar and he will certify
                                                                                                                             the payment.
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