NRI’s Corner
Can a resident continue to hold immovable property outside India which was acquired by him when he was a non-resident?
According to section 6(4) of the FEMA, a person resident in India can hold, own, transfer or invest in any immovable property situated outside India if such property was acquired, held or owned by him/ her when he/ she was resident outside India or inherited from a person resident outside India.
Can a resident individual send remittances and purchase property outside India?
A resident individual can send remittances under the Liberalised Remittance Scheme (LRS) for purchasing immovable property outside India. In case members of a family pool their remittances to purchase a property, then the said property should be in the name of all the members who make the remittance.
To whom do the restrictions of transferring property outside India not apply?
The prohibition of a resident acquiring property outside India is not applicable if:
- The resident is a foreign national; or
- The property was acquired before July 8,1947 and continued to be held after obtaining permission; or
- If it is acquired on a lease not exceeding five years.
How can immovable property be acquired outside India by a resident?
Immovable property can be acquired outside India:
- Under section 6(4) of FEMA.
- As an inheritance/ gift from a person (i) referred to in sec. 6(4) of FEMA; or (ii) who has acquired it prior to July 8, 1947 (iii) who has acquired such property in accordance with the foreign exchange provisions in force at the time of such acquisition
- Purchased with balances in the Resident Foreign Currency (RFC) account of the resident.
- As a gift from persons at (b) & (c) above, provided he is a relative of such persons.
- Purchased with remittances made under the Liberalised Remittance Scheme (LRS).
- Jointly with a relative provided there are no outflow of funds from India.
- By an Indian company having overseas offices, for housing its business or for residence of staff.
