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Rules For NRI

There are provisions to acquire or transfer immovable property in India by the NRI's, however they have to follow the liberal rules laid down by the FEMA. NRI's can hold, own or transfer immovable property in India without any condition Under Section 6(5) of FEMA, a person residing outside India can hold, own or transfer immovable property in India if such property is acquired by him when he was a residing in India or inherited from a person residing in India. Thus, this provision facilitates the ownership and transfer of immovable property in India by former residents and there is no impediment to their continuing to hold such property or transfer such property even when they become NRI. Acquisition and transfer of immovable property by an NRI An Indian citizen resident outside India is permitted to -

  • Acquire any immovable property in India other than agricultural/plantation property or a farm house.
  • Transfer any property in India to a person resident in India.
  • Transfer any property other than agricultural or plantation property or a farm house to an Indian citizen or a person of Indian origin

NRI's who are Indian citizens enjoy great privileges in the matter of acquisition and transfer of an immovable property in India as mentioned above. A Non-resident person of Indian origin, namely, a Non-resident who is not a citizen of India, does not enjoy this privilege. Acquisition and transfer of an immovable property by a person of Indian origin. The aforesaid Regulation permits a person of Indian origin to:


  • Acquire immovable property other than agricultural land/plantation property or a farm house by way of purchase subject to the conditions regarding RBI rules mentioned in clause (a) of the Regulation;
  • Acquire any immovable property other than agricultural land/plantation property/farm house by way of gift from an Indian citizen resident outside India or from a PIO;
  • Acquire property by inheritance subject to the conditions stipulated in clause of the Regulation
  • Transfer by way of sale any immovable property other than agricultural / plantation property or a farm house by way of sale to a person resident in India;
  • Transfer agricultural land/farm house or plantation property way of gift or sale to an Indian citizen resident in India.

NRI's do not require permission of the Reserve Bank of India (RBI) to acquire residential/commercial property in India, as RBI has granted general permission to foreign citizens of Indian origin, whether resident of India or abroad, to purchase immovable property in India for their bonafide residential purpose. However 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 bank in India.

Foreign citizens of Indian origin, purchasing residential immovable property in India under the general permission, are required to file a declaration in form IPI 7 with the central Office of RBI at Mumbai within a period of 90 days from the date of purchase of property or final payment of purchase consideration along with the certified copy of document evidencing the transaction and bank certificate regarding the consideration paid.