Now it is possible for persons of Indian origin to buy a property
out of NRI accounts without permission from the Reserve Bank of India.
The procedural forms IPI-1 to IPI-8, which dealt with declaration
and repatriation, have been done away with. Instead, authorised dealers
can repatriate sale proceeds, after tax has been paid. In fact, NRI's
don't even have to declare to the RBI that they have bought
immovable property in India.
The RBI has given permission to NRI's holding Indian passport to:
Acquire immovable property other than agricultural/plantation/farmhouse.
Transfer immovable property in India to a person resident in India.
Transfer immovable property other than agriculture/plantation/farmhouse
to an Indian citizen or person of Indian
origin resident outside the country.
The RBI has also allowed certain financial institutions to grant
home loans to NRI's holding Indian passports. Where companies have
to give housing loans to employees posted abroad for uncertain periods,
they have to get the RBI's permission. NRI's can repatriate up to
two residential properties and unlimited commercial properties bought
on or after May 26,1993 and after a lock-in period of three years.
Only the original investment made in foreign exchange will be entitled
for repatriation. Rental income can be repatriated after payment
of tax, even in cases where property was bought as a resident, with
local funds. NRI's holding foreign passports are permitted to acquire
immovable property by way of purchase, gift or inheritance. They
can also transfer it by way of sale or gift to a person resident
in India or to a person of Indian origin.
Foreign companies having a branch office in India can acquire immovable
property necessary for the activity carried on in India subject
to the applicable rules and laws.
10:20:23 PM 
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