| Q1.
|
Who is a non-resident
Indian (NRI)? |
| Ans. |
An Indian Citizen who stays
abroad for employment / carrying on business or vocation outside
India or stays abroad under circumstances indicating an intention
for an uncertain duration of stay abroad is a non-resident.
(Persons posted in U.N. organisation and officials deputed abroad
by Central/State Governments and Public Sector undertakings
on temporary assignments are also treated as non- residents).
Non-resident foreign citizens of Indian Origin are treated on
par with non-resident Indian citizens (NRIs). |
| Q2. |
What is an OCB? |
| Ans. |
Overseas Corporate Bodies (OCBs) are bodies predominantly
owned by individuals of Indian nationality or origin resident
out side Indian and include overseas companies, partnership
firms, societies and other corporate bodies which are owned,
directly or indirectly, to the extent of atleast 60% by individuals
of Indian nationality or origin resident outside India as also
overseas trust in which atleast 60% of the beneficial interest
is irrevocably held by such persons. Such ownership interest
should be actually held by them and not in the capacity as nominees.
The various facilities granted to NRIs are also available with
certain exceptions to OCBs so long as the ownership/beneficial
interest held in them by NRIs continues to be atleast 60%. |
| Q3. |
Are OCBs required to produce
any certificate regarding ownership/beneficial interest in them
by NRIs? |
| Ans. |
Yes. In order to establish that the ownership/beneficial
interest in any OCB held by NRIs is not less than 60%, the concerned
body/trust is required to furnish a certificate from an overseas
auditor / chartered / accountant /certified public accountant
in form OAC where the ownership/beneficial interest is directly
held by NRIs, and in form OAC 1 where it is held indirectly
by NRIs and further that such ownership interest is actually
held by them and not in the capacity as nominees. |
| Q4. |
What are the various facilities
available to NRIs/OCBs? |
| Ans. |
NRIs/OCBs are granted the followings facilities:
1. Maintenance of bank accounts in India.
2. Investments in securities/shares of, and deposits with, Indian
firms/companies.
3. Investments in immovable properties in India.
Details of these facilities are given in Chapters II,III and
IV. |
| Q5. |
Do non-resident Indian citizens
require permission of Reserve Bank to acquire Residential/commercial
property in India? |
| Ans. |
No. |
| Q6. |
Do foreign citizens of Indian
origin require permission of Reserve Bank to purchase immovable
property in India for their residential use? |
| Ans. |
Yes. However, Reserve Bank has granted general
permission to foreign citizens of Indian origin whether resident
in India or abroad, to purchase immovable property in India
for their bona fide residential purpose. They are therefore,
not required to obtain separate permission of Reserve Bank. |
| Q7. |
In what manner the purchase
consideration for the residential immovable property should
be paid by foreign citizens of India origin under the general
permission? |
| 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. |
| Q8. |
What are the formalities
required to be completed by foreign citizens of Indian origin
for purchasing residential immovable property in India under
the general permission? |
| Ans. |
They are required to file a declaration in form
IPI 7 with the Central Office of Reserve Bank at Mumbai within
a period of 90 days from the date of purchase of immovable property
or final payment of purchase consideration along with a certified
copy of the document evidencing the transaction and bank certificate
regarding the consideration paid. |
| Q9. |
Can such property be sold
without the permission of Reserve Bank? |
| Ans. |
In respect of residential properties purchased
on or after 26th May 1993, Reserve Bank considers applications
for repatriation of sale proceeds up to the consideration amount
remitted in foreign exchange for the acquisition of the property
for two such properties. The balance amount of sale proceeds
if any or sale proceeds in respect of properties purchased prior
to 26th May 1993, will have to be credited to the oridinary
non-resident rupee account of the owner of the property. |
| Q10. |
Are conditions required to be fulfilled if
repatriation of sale proceeds id desired? |
| Ans. |
Applications for repatriation of sale proceeds
are considered provided the sale takes place after three years
from the date of final purchase deed or from the date of payment
of final instalment of consideration amount, whichever is later. |
| Q11. |
What is the procedure for
seeking such repatriation? |
| Ans. |
Applications for necessary permission for remittance
of sale proceeds should be made in from IPI 8 to the Central
Office of Reserve Bank at Mumbai within 90 days of the sale
of the property. |
| Q12. |
Can foreign citizens of Indian origin acquire
or dispose of residential property by way of gift? |
| Ans. |
Yes. Reserve Bank has granted general permission
to foreign citizens of Indian origin to acquire or dispose of
properties up to two house by way of gift from or to a relative
who may be an Indian citizen or a person of Indian origin whether
resident in India or not, provided gift tax has been paid. |
