Ans.The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/ FCNR accounts maintained with banks in India .

Ans.The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original Non-Resident account or from Non-Resident (External) Accounts. When the flat is under construction, it may be possible to get installment facilities from the builder. Loan may also be available in India for purchase of flats, for example from Housing Development Finance Corporation, ANZ Grindlays Bank, Citi Bank etc. Non-Resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to Non-Resident Indians even if they are abroad, provided a family member of his or her in India is made a co-borrower and a power of attorney is given to his representative in India.

Ans.The Non-Resident Indians who are staying abroad may enter into an agreement through their relatives and/ or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.). These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.

Ans.They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Bombay within a period of 90 days from the date of purchase of immovable property.

Ans.Yes

Ans.No. Such income cannot be remitted abroad and will have to be credited to the ordinary Non-Resident rupee account of the owner of the property. Question Answers Regarding Exchange Control Regulations in Respect of NRI investment in movable property .

Ans.No specific permission is required by Non-Resident Indians to transfer any immovable property in India to a person resident in India.

Ans.
(i) A PIO does not require any specific permission to acquire any immovable property other than agricultural land/ farm house/ plantation property in India by purchase, from out of funds:

1. received in India by way of inward remittance through banking channel from any place outside India; or
2. held in any Non-Resident account maintained in accordance with the provisions of the Foreign Exchange Management Act and the regulations made by the Reserve Bank under the Act.

(ii)A PIO does not require any specific permission to acquire any immovable property in India other than agricultural land/ farm house/ plantation property by way of gift from a person Resident in India or from a person Resident outside India who is a citizen of India or from a person of Indian origin Resident outside India.

(iii)A PIO does not require any specific permission to acquire any immovable property in India by way of inheritance from a person Resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of the Regulations of FEMA or from a person Resident in India.

(iv) A person of Indian origin Resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/ farmhouse/ plantation property, by way of sale to a person Resident in India.

(v) A PIO does not require any specific permission to transfer agricultural land/ farm house/ plantation property in India, by way of gift or sale to a person Resident in India who is a citizen of India.

(vi) PIO does not require any specific permission to transfer Residential or commercial property in India by way of gift to a person Resident in India or to a person Resident outside India who is a citizen of India or to a PIO.