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DISCLAIMER: This article is updated with the latest information till 21st May, 2009.

Definition of NRI: The term NRI is defined under FEMA rules and regulations as A person resident outside India who is either a citizen of India or is a person of Indian origin (PIO). However the term PIO is defined differently in different regulations & therefore the term NRI will have different meaning under different regulations i.e. the terms NRI & PIO are contextual. Under the Foreign Exchange management (Deposit) Regulations, 2000, which deal with banking accounts in India by NRIs, the term PIO is defined as below: A Person of Indian Origin (PIO) is a citizen of any country other than Bangladesh or Pakistan, if he at any time held an Indian passport or he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 or he is spouse of an Indian citizen or a person referred to in a or b.

Resident Outside India: Person resident outside India means a person who is not resident in India. Resident in India : Person Resident in India means: 1. Person Resident in India for more than 182 days during the course of preceding financial year but does not include : A) A person who has gone out of India or who stays outside India, in either case : (A.1) for or on taking up employment outside India; or (A.2) for carrying on outside India a business or vocation outside India; or (A.3) for any other purpose, in such circumstances as would indicate his intention to stay outside India for a uncertain period. B) A person who has come to or stay in India, in either case, otherwise than : (B.1) for or on taking up employment in India, or (B.2) for carrying on in India a business or vocation in India, or (B.3) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period; 2. Any person or body corporate registered or incorporated in India;

3. An Office, Branch or Agency in India owned or controlled by a person resident outside India;

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4. An Office, Branch or Agency in India owned or controlled by a person resident in India.

Person of Indian Origin Person of Indian Origin" means a foreign citizen (not being a citizen of Pakistan, Bangladesh and other countries as may be specified by the Central Government from time to time) if, he/she at any time held an Indian passport; or he/she or either of his/her parents or grand parents or great grand parents was a citizen of India by virtue of the Constitution of India of the Citizenship Act, 1955 (57 of 1955); or he/she is a spouse of a citizen of India or a person of Indian origin covered under (i) or (ii) above. (c) PIO Card means a card issued under this Scheme.

Form of application for issue/renewal of a PIO Card: An application for issue/renewal of a PIO Card shall be made in the prescribed from and shall be accompanied by documentary evidence to show that the applicant is a person of Indian origin as defined.

Authority to which application is to be made: An application for issue of a PIO Card shall be made to an Indian Mission in the country where the applicant is ordinarily resident. Applicants already in India on Long Term Visa (more than one year) shall make the application for issue of a PIO Card to the following authorities:(A) Delhi Those residing in: Foreigners Regional Registration Officer, Hans Bhavan, I.P. Estate, New Delhi- 110 001 Foreigners Regional Registration Officer, Level-II , East ________________________________________________________________________
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Block VIII, Sector - 1 , R.K Puram, New Delhi-110066 Mumbai Foreigners Regional Registration Officer, II,Commissioner of Police, Craw Ford Market, Mumbai - 400001 Foreigners Regional Registration Officer, 237, Acharya Jagdish Chandra Bose Road, Calcutta - 700020 Foreigners Regional Registration Officer, 123-D , Ranjeet Avenue, Amritsar -143001 Foreigners Regional Registration Officer, Bhavan, 26, Haddows Road, Chennai-600006 Shashtri Annexe

Kolkata

Amritsar

Chennai

(B) Those residing in areas other than (A) above: Joint Secretary (Foreigners), Ministry of Home Affairs, Ist floor, Lok Nayak Bhavan, Khan Market, New Delhi 110003 Authority to grant a PIO Card The authority to grant a PIO Card shall be an officer in an Indian Mission notified for the purpose or the Joint Secretary, Ministry of Home Affairs, Government of India or the Foreigners Regional Registration Officer, New Delhi, Mumbai, Calcutta or the Chief Immigration Officer, Chennai. Validity of PIO Card A PIO Card shall be valid for a period of fifteen years from the date of issue subject to the validity of the passport of the applicant. Validity of existing PIO Cards: PIO Cards issued under the scheme notified in 1999 at US $1000 will continue to remain valid, while no refund shall be available, the validity of such cards would be extendable for a further period of 10 years (i.e 30 years in all), if so applied for by the cardholder, without any extra cost.

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Fee: A fee of US $365 whereas $ 370 in San Francisco (for adults) or $ 185 (for children up to the age of 18 years) will be payable along with the application. Facilities to be extended to a PIO Card holder A PIO Card holder shall not require a visa to visit India. A PIO Card Holder will be exempted from the requirement of registration if his stay in India does not exceed 180 days. In the event of continuous stay in India of the PIO Card holder exceeding 180 days, he/she shall have to get himself/herself registered within 30 days of the expiry of 180 days with the concerned Foreigners Registration Officer at District Headquarter. A PIO Card holder shall enjoy parity with NRIs in respect of all facilities available to the latter in the economic, financial and educational fields except in matters relating to the acquisition of agricultural/plantation properties. No parity shall be allowed in the sphere of political rights. Admission of children in education institutions In India under the general category quota for NRIs including medical/ engineering college, IITs, IIMs etc. All future benefits that would be extended to NRIs would also be available to the PIO card holders. Various housing schemes of Life Insurance Corporation of India, State Government and other Government Agencies. It does not give voting rights to the holders of the card.

Cancellation of PIO Card: The Central Government may, by order, cancel the PIO Card, If it is satisfied that: The PIO Card was obtained by means of fraud, false representation or the concealment of any material fact; or The PIO Card holder has shown himself by act or speech to be disaffected towards the Constitution of India and other laws or India; or

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The PIO Card holder is a citizen or subject of any country at war with, or committing external aggression against India; or of any other country assisting the country at war with, or committing such aggression against India; or The PIO Card holder has been sentenced in India for indulging in acts of terrorism, smuggling of narcotics, arms, ammunitions etc. or has been sentenced for committing an offence punishable with imprisonment upto one year or fine upto rupees ten thousand; or It is not conducive to the public interest that the person should continue to hold a PIO Card.

No reasons shall be assigned for withdrawal of the Card Gratis Card: Gratis PIO card may be issued to an exceptionally eminent person of Indian origin who plays an important role in building bridges between India and country of his/ her adoption, if he/ she expresses a desire to obtain the PIO card. Overseas Citizenship of India (OCI) (OCI Scheme is operational from 02.12.2005) The Constitution of India does not allow holding Indian citizenship and citizenship of a foreign country simultaneously. Based on the recommendation of the High Level committee on Indian Diaspora, the Government of India decided to grant Overseas Citizenship of India (OCI) commonly known as dual citizenship. Persons of Indian Origin (PIOs) of certain category as has been specified in the Brochure who migrated from India and acquired citizenship of a foreign country other than Pakistan and Bangladesh, are eligible for grant of OCI as long as their home countries allow dual citizenship in some form or the other under their local laws. Eligibility Criteria: A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at anytime after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her children and grand children, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as an Overseas Citizen of India (OCI). Minor children of such persons are also eligible for OCI. ________________________________________________________________________
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However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI. Application Form and Procedure: A family consisting of spouses and upto two minor children can apply in the same Form i.e. Form XIX. The following documents must be enclosed in each application: 1. Proof of present citizenship 2. Evidence of self or parents or grand parents, (a) Being eligible to become a citizen of India at the time of commencement of the Constitution; or (b) Belonging to a territory that became part of India after 15th August,1947;or (c) Being citizen of India on or after 26th January, 1950 These could be: (i) Copy of the passport :or (ii) Copy of the domicile certificate issued by the Competent authority ;or (iii) Any other proof . Evidence of relationship as parent/grand parent, if their Indian origin is claimed as basis for grant of OCI. Application fee by way of a Demand Draft (US $ 275 for each applicant or equivalent in local currency; US $ 25 or equivalent in local currency for each PIO card holder) In both cases additional amount of $20 for return mailing charges should also be sent along with the same. PIO card holder should submit a copy of his/her PIO card. The application form, completed in all respects, along with enclosures should be submitted in duplicate to the Indian Mission/Post of the country of applicants citizenship or where he/she is not in the country of citizenship, to the Indian Mission/Post of the country in which he/she is ordinarily a resident. If the applicant is in India, he/she can apply to the Foreigners Regional Registration Officer (FRRO) at Delhi, Mumbai, Kolkota or Amritsar or Chief Imigration Officer (CHIO) Chennai or to the Under Secretary, OCI Cell, Citizenship Section, Foreigners Division, Ministry of ome Affairs (MHA), Jaisalmer House, 26 Man Singh Road, New Delhi-110011.

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Procedure for Granting Registration: After preliminary scrutiny, if there is no adverse information available against the applicant, the Indian Mission/Post shall register a person as an OCI within 42 working days (6 weeks) of application and the case shall be referred to MHA for post verification of the antecedents of the applicant. If during the post verification, any adverse information comes to the knowledge of the MHA, the registration as an OCI already granted by the Indian Mission/Post shall be cancelled by an order under section 7 D of the Citizenship Act, 1955. After preliminary scrutiny, if there is any adverse information against the applicant, prior approval of the MHA shall be required before grant of registration. The MHA may approve or reject the grant of registration within 120 days from the date of the receipt of the application. If the grant of registration as an OCI is approved by the MHA, the Indian Mission/Post shall register the person as an OCI. If the application is filed in India, registration shall be granted by MHA by following the above procedure. After grant of registration, a registration certificate in the form of a booklet will be issued and a multiple entry, multi-purpose life long OCI U visa sticker will be pasted on the foreign passport of the applicant. If the registration as OCI is not granted, an amount of US $ 250 or equivalent in local currency shall be refunded if registration is refused. There is nonrefundable processing fee of US $25. OCI for PIO Card Holders: PIO card holders who are otherwise eligible for registration as an OCI may apply in the same Form i.e. Form XIX and they will be considered for grant of registration in the same manner as other applicants. PIO cardholders have to pay a fee of US $ 25 or equivalent in local currency instead of US $ 275 as for a normal applicant. PIO cardholder will have to surrender his/her PIO card after knowledge of acceptance of the application. OCI for persons who have applied on the earlier prescribed application form: All such applications will be considered for grant of an OCI on the same line as above, without seeking fresh application and fees.

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Cancellation of OCI Registration: If it has been found that the registration as an OCI was obtained by means of fraud, false representation or concealment of any material fact or the registered OCI has shown disaffection towards the Constitution of India or comes under any of the provisions of section 7D of the Citizenship Act, the registration of such person will not only be cancelled forthwith but he/she will also be blacklisted from visiting India. Benefits to an OCI: Following benefits will accrue to an OCI: (i) A multiple entry, multi-purpose life long visa for visiting India. (ii) Exemption from registration with local police authorities for any length of stay in India. (iii) Parity with Non-resident Indians (NRIs) i.n respect of economic, financial and educational fields except in relation to acquisition of agricultural or plantation properties. Any other benefits to an OCI will be notified by the Ministry of Overseas Indian Affairs (MOIA) under Section 7B(1) of the Citizenship Act, 1955. (iv) eligible to apply for grant of Indian Citizenship under section 5(1)(g) of the Citizenship Act, 1955, if s/he is registered as OCI for 5 years and has been residing in India for 1 year out of five years before applying.

Benefits to which OCI is not entitled to: The OCI is not entitled to vote, be a member of Legislative Assembly or Legislative Council or Parliament, cannot hold constitutional posts such as President, Vice President, Judge of Supreme Court or High Court etc. and he/she cannot normally hold employment in the Government. Comparative Chart on NRI/PIO/PIO CARD HOLDERS/OCI NRI An Indian citizen who is ordinarily residing outside India and holds an Indian Passport. PIO A person who or whose any of ancestors was an Indian national and PIO CARD HOLDER A person registered as PIO Card Holder under MHAs scheme vide Notification No. 26011/4/98-F.I dated 19.08.2002. OCI A person registered As Overseas Citizen Of India (OCI) under section 7A of the Citizenship

1.Who?

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2. Who is eligible?

who is presently holding another countrys citizenship/ nationality i.e. he/she is holding foreign passport. Any person who at any time held an Indian Passport; or he or either of his parents or grand parents was born in or was permanently resident in India as defined in Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of Afghanistan, Bhutan, China, Nepal, Pakistan and Sri Lanka; or who is a spouse of a citizen of India or a person of Indian origin as mentioned above.

Act,1955

A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at anytime after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her children and grand children, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as Overseas Citizen of India

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3. How can one get ?

4. Where to apply?

Eligible persons to apply in the prescribed form alongwith enclosures. Form available on MHAs website: www.mha.nic.in. To the Indian Mission/Post in the country where the applicant is ordinarily resident; If in India on long term visa(more than one year), to the FRRO, Delhi, Mumbai, Kolkatta, Amritsar, CHIO, Chennai or to the Joint Secretary(Foreigners), MHA.

(OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI. Eligible persons to apply on line/down load application form from MHAs website: www.mha.nic.in. To the Indian Mission/Post of the country of applicants citizenship or where he/she is not in the country of citizenship, to the Indian Mission/Post of the country in which he/she is ordinarily resident. If the applicant is in India, he/she can apply to the FRRO at Delhi, Mumbai,

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5. Fees?

6.Which nationals are eligible?

7.What benefits one is entitled to?

Kolkota, Amritsar, CHIO, Chennai or to the Under Secretary, OCI Cell, Citizenship Section, Foreigners Division, Ministry of Home Affairs, Jaisalmer House, 26 Mansingh Road, New Delhi110011. Rs. 15,000/- or US $ 275 or equivalent in local equivalent in currency for adults. local currency. For In case of PIO the children upto the card holders, it age is US $ 25 or of 18 years, the fee is equivalent in Rs. 7500/or local currency. equivalent in local currency. PIOs of all countries PIOs of all except Afghanistan, countries Bangladesh, Bhutan, except Pakistan China, Nepal, and Pakistan Bangladesh and Sri Lanka provided the country of nationality allows dual citizenship in some form or other under the local laws. All benefits No specific (i)Shall not require a (i) A multiple as available benefits. separate visa to visit entry to Indian India. multi-purpose citizen (ii) Will be exempt life long visa for subject to from visiting India.

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notifications issued by the Government from time to time

the requirements of registration if his/her stay on any single visit in India does not exceed 180 days. (iii) In the event of continuous stay in India exceeding 180 days, he/she shall have to get himself/herself registered within 30 days of the expiry of 180 days with the concerned FRRO/FRO. (iv) Parity with NRIs in respect of all facilities available to the later in the economic, financial and educational fields except in maters relating to the acquisition of agricultural/ plantation properties. No parity shall be allowed in the sphere of political rights.

(ii)Exemption from registration with local police authority for any length of stay in India. (iii) Parity with Non resident Indians (NRIs) in respect of economic, financial and educational fields except in relation to acquisition of agricultural or plantation properties. No parity shall be allowed in the sphere of political rights.

8.Does he/she require visa for visiting India?

No

Yes and of specific type depending on his/her purpose of

Any other benefits to OCIs will be notified by the Ministry of Overseas Indian Affairs (MOIA) under Section 7B(1) of the Citizenship Act,1955. Can visit India without Can visit India visa for 15 years from without visa for the life long. date of issue of PIO card.

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visit.

9.Is he required to register with local police authorities in India? 10.What activities can be undertaken in India?

No

Yes

Yes, one time when No the stay in India exceeds 180 days for the first time.

All activities

Activity as specified in the visa

All activities except mountaineering, missionary and research work and existing PAP/RAP which require specific permit.

As per section 5(1) 11.How He/she is As per (a) & 5(1) (c) of the can one an Indian section Citizenship Act, acquire citizen 5(1) Indian (a) & 5(1) he/she Citizenship? has to reside in India (c) for of the Citizenship minimum 5 years before Act, he/she making application for has to granting Indian citizenship reside in India for minimum 5 years before making application for granting Indian citizenship

All activities except mountaineering, missionary and research work and existing PAP/RAP which require specific permit. Registered OCI may be granted Indian citizenship after 5 years from date of registration provided he/she stays for one year in India before making application.

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Definition of Non-Resident Indian

NON RESIDENT INDIAN (NRI)

Is a Person

RESIDENT OUTSIDE INDIA

OR

Either CITIZEN OF INDIA

PERSON OF INDIAN ORIGIN

A Person RESIDENT OUTSIDE INDIA

Not Resident in India

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RESIDENT IN INDIA

Office/Branch/ Agency out of India controlled by Person Resident in India

Person Residing in India for more than 182 days but does not include who stays outside India for Office/Branch/ Agency in India controlled by person Resident Outside India

Person who is in India but does not include who is not Body Corporate Incorporated in India

for employment in India for business in India in India for an Uncertain Period

Employment out of India; Business out of India; Uncertain Period outside India

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PERSON OF INDIAN ORIGIN (PIO)

Citizen of any Country other than Bangladesh & Pakistan

(i) He at time held Indian Passport; or

(ii) He or either of his parents or grand parents was a citizen of India; or

(iii) His spouse is an Indian Citizen or a person as per (i) & (ii)

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Benefits associated with the NRI status :

Apart from various types of investments in India, which NRI can make, there are several other advantages of the NRI status, which are outlined below: NRIs can freely acquire immoveable properties abroad out of earnings abroad. He can invest anywhere in the world. He can start any business abroad. He can become trustee-beneficiary of a trust set up abroad. He can retain all these even on his return to India and need not even intimate RBI about his foreign assets. NRIs can set up family trusts abroad for education of his children/ maintenance of his family members. Such trusts can also be Asset Protection Trusts where the assets held by the trust are free from attachment by the creditors. NRIs can bring 10 kgs. of gold (on payment of duty of Rs. 250 per 10 gms.) & 100 kgs. of silver (on payment of duty of Rs. 500 per kg.) once in six months on his visit to India. NRIs foreign income is not liable to tax in India. NRIs can enjoy several tax concessions in India on his assets in India. NRIs can seek Advance ruling from Advance Ruling Authority on taxability (income tax) of transactions. NRIs can avail the benefits of the Double Tax Avoidance Agreements (DTAAs) entered into by India with several countries which attempt to minimise double tax on the same income (i.e. if tax is payable in India by NRIs on their income in India, credit for tax payable is available against tax payable in foreign country on such income). Also tax on dividends, royalty, fees for technical services earned in India by NRIs are offered concessional tax treatment under most DTAAs. Further, in few cases, tax may not be payable at all on such income if the NRI is a tax resident of a treaty country. There are special reserve seats for children of NRIs for Engineering/Medical/MBA courses in certain institutions in India provided the fees are paid in foreign exchange.

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Even in case of Initial Public Offerings (IPOs), there are special quotas for NRI.

Facilities Available to NRIs / OCBs : The various facilities available to NRIs /OCBs for investments in India are: Maintenance of bank accounts in India Investment in immovable properties in India Investments in securities/shares of, and deposits with, Indian firms/companies.

Maintenance of BANK ACCOUNTS NRIs/PIOs/OCBs are permitted to open bank accounts in India out of funds remitted from abroad, foreign exchange brought in from abroad or out of funds legitimately due to them in India, with an authorised dealer. Such accounts can be opened with banks specially authorised by the Reserve Bank in its behalf [Authorised Dealer (AD)]. NRI accounts are of five types: Non-Resident (External) Rupee Accounts (NRE Accounts) - These are rupee denominated accounts and can be in the form of savings, current, recurring or fixed deposit accounts. Ordinary Non-Resident Rupee Accounts (NRO) - These are rupee denominated non-reportable accounts and can be in the form of savings, current recurring or fixed deposits. These accounts can be opened jointly with residents of India. Non-resident (Non-reportable) Rupee Deposit Accounts (NRNR Accounts) NRIs/PIOs/OCBs, other non-resident Individuals/entities are permitted to open these accounts. Accounts can be opened by transfer of freely convertible foreign currency funds from abroad, or from NRE/FCNR accounts. Deposits can be held jointly with a resident. Non-Resident (Special) Rupee Accounts with banks in India - These accounts are meant for NRIs/PIOs and will be at par with rupee accounts, maintained by residents. NRIs/PIOs can open Non-Resident (Special) Rupee Accounts with banks in India, which have the same facilities and restrictions as are applicable to rupee accounts maintained in India by residents, relating to repatriation of funds held in these accounts and/or income/interest earned on them. Foreign Currency (Non-Resident) Accounts (Banks) (FCNR (B) Accounts) NRIs/PIOs/OCBs are permitted to open such accounts in US Dollars, Sterling Pounds, Deutsche Marks, Japanese Yen and Euro. These accounts may be opened only in the form of term deposits.

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General Permission to Invest in Shares of Indian Company Reserve Bank has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the Automatic Route purchase of shares under Portfolio Investment Scheme, investment in companies and proprietorship/partnership concerns on non-repatriation basis and for remittances of current income. NRIs/PIOs do not have to seek specific permission for approved activities under these schemes. PORTFOLIO INVESTMENT NRIs/OCBs are permitted to make portfolio investment in shares/debentures (convertible and non-convertible) of Indian companies, wit or without repatriation benefit provided the purchase is made through a stock exchange and also through designated branch of an authorised dealer. NRIs/OCBs are required to designate only one branch authorised by Reserve Bank for this purpose. GENERAL CONDITIONS FOR PURCASE WITH REPATRIATION OF NONREPATRIATION RIGHTS Investment in equity shares and convertible debentures is permitted subject to an overall ceiling of (a) 10 per cent of the total paid-up equity capital of the company concerned; and (b) 10 per cent of the total paid-up value of each series of the convertible debentures issued by the company concerned for all NRIs/OCBs taken together both on repatriation and on non-repatriation basis. The purchase of shares and debentures under the scheme is required to be made at the ruling market price. Indian companies listed on recognised stock exchanges in India are however permitted to allow NRIs/OCBs to acquire shares/debentures up to 24% instead of the 10% limit after a resolution in General Body and necessary information to RBI.

INVESTMENT ON NON-REPATRIATION BASIS : NRIs/OCBs intending to invest on non-repatriation basis should submit the application in form NRI and NRC respectively, to a designated branch of an authorised dealer. Authorised Dealer will grant general permission to purchase shares/debentures to NRI/OCB subject to the condition that the payment for such investment is received through inward remittance or from the investors NRE/FCNR/NRO Account.

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Securities acquired by NRIs/OCBs under PI scheme on a non-repatriation basis can be sold without any permission on the floor of a stock exchange. Dividend and interest income is fully repatriable

INVESTMENT ON REPATRIATION BASIS : NRIs and OCBs intending to invest with repatriation benefits should submit the application to the designated branch of authorised dealer. AD will grant to NRI/IOCB for purchase of shares/debentures subject to the conditions thatThe payment is received through an inward remittance in foreign exchange or by debit to the investors NRO/NRE/FCNR account. Investment made by any single NRI/OCB investor in equity/preference shares and convertible debentures of any listed Indian company does not exceed 5% of its total paid-up equity or preference capital or 5% of the total paid-up value of each series of convertible debentures issued by it. NRIs/OCBs take delivery of the shares/convertible debentures purchased and give delivery of the shares/convertible debentures sold under the Scheme. NRIs and OCBs can freely sell securities acquired by tem with repatriation benefits, without any permission, through a stock exchange. Dividend and interest income is also fully repatriable.

INVESTMENT IN REAL ESTATE A person resident outside India and a person of Indian origin can acquire, transfer or rent immovable property other than agricultural land/farm house/plantation property in India without prior permission, subject to certain conditions. However, all persons whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan require prior permission of the Reserve Bank for acquiring or transferring any immovable property in India. A person resident outside India, who has been permitted by the Reserve Bank to establish a branch, or office, or place of business in India (excluding a Liaison Office), has general permission of the Reserve Bank to acquire immovable property in India, which is necessary for, or incidental to, the activity. However, in such cases a declaration, in prescribed form (IPI), is required to be filed with the Reserve Bank, within 90 days of the acquisition of immovable property.

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Acquisition and Transfer of Property in India by an Indian Citizen resident outside India. A person resident outside India who is a citizen of India may (a) acquire any immovable property in India agricultural/plantation/farm house, (b) India, and

other

than

transfer any immovable property in India to a person resident in

(c) transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India.

Acquisition and Transfer of Property in India by a person of Indian origin. A person of Indian origin resident outside India may (a) acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of (i) funds received in India by way of inward remittance from any place outside, India, or (ii) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act; (b) 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; (c) 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 these Regulations or from a person resident in India; (d) transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India; (e) 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;

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(f) 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 person of Indian origin resident outside India.

Acquisition of Immovable Property for carrying on a permitted activity.

A person resident outside India who has established in India in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business for carrying on in India any activity, excluding a liaison office, may

(a) acquire any immovable property in India, which is necessary for or incidental to carrying on such activity : Provided that (i) all applicable laws, rules, regulations or directions for the time being in force are duly complied with; and (ii) the person files with the Reserve Bank a declaration in the Form IPI annexed to these regulations, not later than ninety days from the date of such acquisition; (b) transfer by way of mortgage to an authorised dealer as a security for any borrowing,the immovable property acquired in pursuance of clause (a). The remittance facility in respect of sale proceeds of immovable property is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal & Bhutan. Facilities for remittance of assets held in India by Non-Residents Eligibility The repatriation facility is available to the following category of persons : (I) Foreign national [other than a citizen of Nepal or Bhutan or a Person of Indian Origin(PIO)] who : (i) has retired from an employment in India, or (ii) has inherited the assets from a person who was a resident in India, or (iii)A widow resident outside India and has inherited assets of her deceased husband who was an Indian Citizen, resident in India. ________________________________________________________________________
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(II) NRI/PIO who acquired the assets in question, out of rupee resources when he was in India or by way of legacy/inheritance from a person who was a resident in India. Funds/assets eligible for repatriation (a) sale proceeds of not more than 2 immovable properties, (b) assets acquired by way of Inheritance/legacy, (c) a deposit with a bank or a firm or a company, (d) provident fund balance or superannuation benefits, (e) amount of claim or maturity proceeds of insurance policy, (f) sale proceeds of shares, securities, (g)any other asset held in India, in accordance with the provisions of the Act or Rules or Regulations made thereunder (as defined at Regulation 2(v) of Notification No. FEMA 13/2000-RB dated May 3, 2000). Purpose of remittance

The liberalized remittance facility is available for any bona fide purpose. General conditions to be satisfied for repatriation of assets. (i) Documentary evidence in support of the acquisition of the funds/assets proposed to be remitted. (ii) Undertaking and Certification relating to tax compliance. Specific conditions relating to repatriation of sale proceeds of immovable property. (i) Repatriation of sale proceeds of not more than 2 immovable properties, acquired out of Rupee funds is available subject to the condition that the property should have been held for a minimum period of 10 years. If such a property acquired out of Rupee funds is sold after being held for less than 10 years, remittance can be made, if the sale proceeds have been held by the NRI/PIO for the balance period in NRO Account (Savings/Term Deposits) or in any other eligible security, provided such investment is traced to the sale proceeds of the immovable property. (ii) There is no lock-in-period in respect of immovable property acquired by way of (a) Inheritance/legacy. (b) Foreign currency funds (through inward remittance or by debit to FCNR/NRE accounts.

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Remittance Procedure (i) In case, the remittance is to be made in more than one installment, the remittances of all instalments should be remitted through the same authorised dealer.

(ii) It is also clarified that the remittance facility is available even if the NRI/PIO/Foreign National is not maintaining any NRO account. However, the remittance should be routed through banking channel only, subject to tax compliance. The remittance facility in respect of financial assets is not available to citizens of Pakistan, Bangladesh, Nepal & Bhutan.

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