You had the wings to fly, and now your roots are pulling you back? Every individual feels the urge to come home once in their lifetime so strong that they try all ways and means to fulfill that wish. Bengalis residing abroad are always looking forward to investing in a property in Kolkata for future use. However, countries and continents apart, old age and religion may not keep you from getting what you want, but the law can. Property acquisition for non-residential Indians has certain constraints.
Do the RBI guidelines allow an NRI to own a real estate property in Kolkata?
The RBI does not prohibit any NRI from purchasing or owning a residential or commercial property in India. Although the NRIs are free to purchase or inherit a property in India, they cannot buy any agricultural land or plantation property without special permissions.
The Foreign Exchange Management Act (FEMA) has laid down few rules and regulations for the NRIs and Persons of India Origins (PIOs) interested in acquiring property in India. Every NRI or PIO shall be treated at par for investing in real estate property.
- Being an NRI, you will not require any permission from the RBI to purchase any residential or commercial property in India.
- There is no need of sending any communication or intimation to the RBI regarding property purchase.
- The income tax laws also do not prohibit NRIs from procurement of one or more real estate property in Kolkata or anywhere else in India.
- The investor can apply for a loan to any bank by online or offline methods too.
- NRIs are not eligible to buy or own any farmhouses or plantation in India. They shall require special permission from the RBI for such kind of land acquisition.
- All transactions done in Indian currency maintained in a non-resident account by the FEMA and RBI regulations.
- The NRI interested in purchasing a real estate property has to give Power of Attorney (PoA) to one of their friends or relatives for compliance with processes in India.
- The PoA can be customized to give full or restricted rights to the representative.
Co-owning a property isn’t a trouble too
So you are looking forward to jointly owning your property in Kolkata with someone? As an NRI you can do that too. The Government of India allows an NRI or a PIO to jointly own a property in India. Your second holder has to fulfill the following criteria:
- He or she has to be an NRI or PIO
- One should be eligible to invest in any property in India
- The second owner should contribute to the property acquisition
What if a person who owns properties in India, subsequently, becomes an NRI?
It may happen that an individual, who is a resident of India has invested in a real estate property and has later attained citizenship of another country where he or she has started residing becoming an NRI in the process. In such situations too, one shall continue to be the owner of the property irrespective of his or her duration of stay in the country. In this case, a person owning an agricultural land or a farmhouse shall also remain the owner of the same. They are also free to rent, sell, transfer or gift their property to an Indian or an NRI post all taxes have been paid on time.
Certain real estate builders in Kolkata can also give proper guidance regarding the legal aspects and tax issues too before purchasing any property in Kolkata. For more details, contact Realtech Nirman.