An NRI is an Indian citizen who stays outside India:
(a)
for purposes of carrying out employment or any business or vocation;
(b)
under circumstances indicating an intention to stay outside India for an uncertain duration;
(c)
any Indian citizen deputed outside India for a temporary period in connection with employment.
Who is a PIO?
A citizen of a foreign country (other than a citizen of Afghanistan, Bhutan, Bangladesh , China, Iran, Nepal, Pakistan and Srilanka) is a PIO if
(a)
he/ she at any time held an Indian passport; OR
(b)
he/ she or either of his/ her parents or any of his/ her grandparents was a citizen of India; OR
(c)
spouse (not being a citizen of Afghanistan, Bhutan, Bangladesh, China, Iran, Nepal, Pakistan and Srilanka) of an Indian citizen or (a) or (b) above.
Who is a Foreign Citizen?
Any person who is a citizen of a foreign nation other than India.
Documents for Identifying One as PIO or NRI
Passport, parents or grand parents school certificates
Controlling Authorities/ Acts
1.
Reserve Bank of India
2.
Foreign Exchange Management Act, 1999
3.
Registration Department
4.
Income Tax Department
Properties Which Can be Purchased by NRI/PIO
NRI/PIO Can Purchase Residential, Commercial Properties.
What types of bank accounts can be opened by NRIs/PIOs in India?
Indian Rupee Accounts:-
•
Non-Resident (Ordinary) Account - NRO A/c.
•
Non-Resident (External) Rupee Account - NRE A/c.
Foreign Currency Accounts:-
•
Non-Resident (Foreign Currency) Account - FCNR A/c. (in Pounds Sterling, US Dollars, Japanese Yen and Euro).
What are the special features of NRO A/c account?
The funds, standing to the credit of this account, cannot be repatriated outside India in foreign exchange, without prior permission of the Reserve Bank of India. Interest, earned on these accounts, is, however, eligible for repatriation outside India, net of Indian taxes.
What are the special features of NRE A/c account?
The funds, standing to the credit of this account, as well as interest earned thereon, are remittable outside India in free foreign exchange, without permission of the RBI. The interest income is not subject to Indian Income-tax.
What are the special features of FCNR A/c account?
These accounts can be opened in four foreign currencies:
•
Pounds Sterling;
•
US Dollars;
•
Japanese Yen;
•
Euro.
Can Non-Resident accounts be opened/ operated by the Power of Attorney holder in India, on behalf of the non-resident?
The accounts cannot be opened by the Power of Attorney holder in India. However, the latter can operate the accounts
What happens to the status of these accounts when the non-resident holder becomes a person, resident in India?
The accounts are to be re-designed as resident accounts, when the non-resident account holder becomes a person, resident in India.
What are the various facilities available to NRIs/PIOs?
The facilities available to NRIs/ PIOs for making investment in India are as follows:
•
opening and maintenance of bank accounts in India;
•
investment in shares and securities of Indian companies, government securities, units of domestic mutual funds and ,deposits with Indian companies/firms;
•
investment in immovable properties in India;
•
investment in proprietorship/partnership concerns in India.
What is the Registration Costs for Purchase Of Property-
1.
Towards stamp fee of 8% on the sale consideration or the property guide line value which ever is higher.
2.
Towards registration fee of 1% on the sale consideration or the property guide line value which ever is higher.
What are the the Statutory liabilities on the purchase of property by an NRI/PIO:
Statutory Payments:
1.
Land revenue tax levied by the State Government.
2.
Property tax for the building levied by the Municipality /Panchayat /Corporation authority.
3.
Power (electric) consumption charges.
4.
Water, drainage, sewerage charge and taxes etc.
What are the types of Capital Gains?
Short term And Long Term Capital Gains
What is Short Term Capital Gain?
Short term capital Asset means an asset held by an assessee for not more than 36 months immediately preceding the date of its transfer.
What is the Tax for Short term Capital Gain?
Short term capital asset shall bear tax at the rate applicable to regular income.
What is Long Term Capital Gain?
Long Term Capital Asset means asset held by an assessee for more than 36 months.
What is the Tax for Long term Capital Gain?
Tax on long term capital gain, shall, in the case of Non Resident, not being a company be 20%, being a company 30%.
In addition to the tax aforesaid, surcharge shall also be levied
What are the Conditions For resale by NRI/PIO?
An NRI can sell residential / Commercial properties in India to a person resident in India, an NRI/PIO. However a PIO can sell a residential/commercial property in India only to a resident of India.
What are the Provisions for repatriation and tax liabilities on sale of property to NRI and any income derived from the property?
Repatriation of the sale proceeds outside India is permitted, if the amount to be repatriated does not exceed
(a)
the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or
(b)
the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property
What are the taxes to be levied for Income from the property?
If the Asset is leased, the income by way of rent would attract liability to Income tax in India.
If the property is sold, there would be liability to capital gains tax. Capital Gains Tax would be leviable on the profit realized on the sale.
Under the foreign exchange regulations to whom is general permission available for purchase of immovable property in India?
General permission is available to purchase only a residential / Commercial property in India to a person resident outside India who is a citizen of India (NRI) or who is a person of Indian origin (PIO).
Is NRI / PIO who has purchased residential / commercial property under general permission required to file any documents with Reserve Bank of India?
NRI / PIO who has purchased residential / commercial property under general permission is not required to file any documents with the Reserve Bank.
Is there any restriction on the number of residential / commercial properties that NRI / PIO can purchase under the general permission available?
There is no restriction on the number of residential / commercial properties that NRI / PIO can purchase under the general permission available.
Can a name of a foreign national of non-Indian origin be added as a second holder to a residential / commercial property purchased by NRI / PIO?
No.
Can a person resident outside India (i.e,. a NRI or a PIO or a foreign national of non-Indian origin) acquire agricultural land / plantation property / farm house in India by way of purchase ?
No.
Can a PIO transfer by way of sale his residential / commercial property to a NRI or a PIO?
No. He would need to seek Reserve Bank prior approval for transfer by way of sale his residential / commercial property in India to a NRI or a PIO.
Under the general permission available what is the mode of payment for purchase of residential / commercial property in India by NRI / PIO?
Under the general permission available NRI / PIO may purchase residential / commercial property in India out of funds remitted to India through normal banking channel or funds held in his NRE / FCNR (B) / NRO account. No consideration shall be paid outside India.
Can NRI avail of housing loan?
Yes
Is there any lock in period for sale of residential / commercial property purchased out of inward remittance / debit to NRE / FCNR (B) account?
No lock in period is applicable for sale of such property.
Is there any restriction on number of residential properties in respect of which sale proceeds can be repatriated by NRI / PIO?
Repatriation of sale proceeds is restricted to not more than two residential properties in one year.
Can a person resident outside India who has established a Branch Office or other place of Business in India in accordance with FEMA regulations purchase immovable property?
A declaration in form IPI should be filled with Reserve Bank within ninety days from the date of acquisition of commercial / residential property.
What are the salient Features of Project Development?
1.
Approach Road
2.
Bore Well
3.
Three Phase Power Connection
4.
Plot Live Fencing
5.
Project Peripheral/Boundary Fencing
6.
Security & Maintenance for 1year
What are the Specifications for DEVELOPMENT ACTIVITY per Acre?
A Approach Road
1. Width
6 M (At Hair Pin Bend 9 M - Max.) of which 4 M Bituminus Road (At Hair Pin Bend 7 M - Max.)
2. Thickness
256 MM
3. Sub Grade
150 MM Soling stones with 75 MM Graded Stones (Blue Granite) Using gravel to fill the voids
8 T Power Roller (Consolidation & Compaction)
4. Sub Base
Road built with 75 MM thickness
45 MM to 65 MM Blue Granite Metal
Using gravel to fill the voids
Watering and 8 T Power Roller (Consolidation & Compaction)
5. Base
25 MM Thickness
Material used - 12 MM to 20 MM Blue Granite mixed with Hot Bitumen
8 T Power Roller (Consolidation & Compaction)
6. Final Coat
Seal coat will be provided
6 M Chips with Hot Bitumen
8 T Power Roller (Consolidation & Compaction)
7. Retaining Wall: (depending upon the depth & pressure)
Size of Stone - 150 MM to 300 MM
Width of Foundation - 2 M to 3 M Height = 1.7 M
3 M to 5 M Height = 2 M
5 M to 7 M Height = 2.5 M
Width at top of Wall = 60 Cms.
Depth of Foundation (Below Ground) 2 M to 3 M Height = 0.90 M
3 M to 5 M Height = 1.50 M
5 M to 7 M Height = 2 M
8. Machinery used
8 T Power Roller
Hot Mixing Plant
9. Purchase of Bitumen
80/100 Bitumen from MRL (A Govt of India Undertaking)
10. Pipes & Culverts:
Pipe Size with culverts - 900 MM (dia) (as per ISI) RR Masonary
B Water (Borewell)
1. Depth Range
Minimum - 100 Feet
Maximum - 300 Feet
(According to availability of Water resource)
2. Size of Casing Pipe
5 Inches
"A" Grade Finolex or equivalent ISI certified PVC
Thickness : 6 Gauge
3. Coverage
To be capped by PVC air tight cap
C Power
1. Street Lights
6 M Pole Height
2. 3 Phase Connection
220 Volts - 3 Phase connections
D Individual (Plot Live Fencing) per Acre
1. 300 Cyprus plants to be planted
In the boundaries
2. 150 Silver Oak trees to be planted
In between Cyprus Plants
3. Steel entry Gate
4. Plot boundary stone on 4 boundaries and to be painted in yellow colour
