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NRI's :: Best Deal for NRI's

An Indian Citizen who stays abroad for employment/ carrying on business or occupation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. Persons posted in UN organizations 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) for the purpose of certain facilities.

Many people of Indian origin NRIs, opting to purchase vacation homes near their relatives' residence as they want to be independent during their stay in India and not stay with kith and kin. This trend has pushed up the demand for flats in the Metros. Besides residential properties, many NRI industrialists are seeking commercial properties in suitable locations to operate in India.

With so many townships being planned in the Bharuch District, we are looking forward to serve the NRIs who have the taste and aspiration to lead a luxurious life in their home towns. We are catering to the NRIs who want to invest in property in India and are looking for something of international standards something that is commensurate with their lifestyles and needs.

The Reserve Bank of India has allowed NRIs to use their foreign currency assets which have been earned and accumulated by them lawfully while they were resident outside India. The RBI has granted general exemption to them from the requirement of surrendering foreign exchange and income there on, in any currency (other than the currency of Nepal or Bhutan): - acquired by them lawfully i.e. without contravention of FERA, 1973, while they were resident outside India, and/or through employment, business or vocation outside India, taken up or commenced while they were residing outside India provided that they were resident outside India for a continuous period of not less than one year.

We are having our valuable links to help for residential and commercial projects in NCR ( Greater Noida, Noida, Delhi-Ghaziabad border, Gurgaon & Faridabad). Similarly, we are also having many residential projects in Agra and Jaipur.

Why Bharuch property NRI Services?

Bharuch Property NRI service caters to overseas investors who want to cash in on the present boom in the Indian real estate market. We very well understand that as an NRI you have different preferences accounting to your own set standards that require due diligence. Working on these lines we offer you a range of customized and professional services including:

Residential segment which includes luxury apartments and homes, retirement homes, condominiums, penthouses, villas, etc

In corporate office spaces and retail mall spaces according to your investment portfolio.

Property Management Services are designed to bring to NRIs the benefits from India properties without the hassle. We help you get the best from your investment by taking care of all the paperwork at the time of purchase and maintenance thereafter. We arrange to let out your property for regular rental income.

This includes Guidance on Financial services:will guide you to avail the best deal on home loans and home insurance in India .

Information for NRIs Regarding Buying Property in India

WHO IS A NRI OR A PIO ?

A Non Resident Indian (NRI) is a person of Indian origin but not residing in India.

Under the Income Tax Act to be assessed as a "resident", an individual should fulfill either of the two conditions:

He should have been present in India in the previous year for at least 182 days. This period of 182 days need not be continuous.

He should have been in India for at least 365 days in the preceding four years and he stayed in India for not less than 60 days in the previous year in consideration.

All those persons who are not residents are called Non Residents.

For the purpose of transfer of immovable property a Person of Indian Origin (PIO) origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who fulfils any of the conditions given below:

He has held an Indian passport or;

He or either of his parents or any of his grand-parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or

The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b).

Rules relating to NRI / PIO investment in real estate have been considerably liberalized and simplified. Foreign citizens of Indian origin (PIOs) have been permitted to invest without the need to obtain approval from the Reserve Bank of India. With the passage of FEMA, the power to effect repatriation proceeds has been decentralized and delegated to authorized foreign exchange dealers. What is more, even the rental income can be repatriated now. It makes sense for NRIs now to earmark a portion of their investment portfolio in real estate and earn competitive return on investment.

In exercise of the powers conferred by clause (i) of sub-section (3) of Section 6, subsection.

OVERSEAS CORPORATE BODY (OCB)

Overseas corporate body means

Companies, partnership firms, societies and other corporate bodies

Owned, directly or indirectly,

To the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons.

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 persons of Indian nationality/origin resident outside India continues to be at or above the level of 60%

FOREIGN DIRECT INVESTMENT IN REAL ESTATE

FDI provides for 100% foreign participation by NRI/OCB's in housing and real estate development sector in following areas:

Development of serviced plots and construction of residential premises

Construction of residential and business premises including business centres and offices

Development of townships

City and urban infrastructure facilities

Manufacture of building material

Participatory ventures in all of the above

Investment in housing finance institutions ACQUISITION OF PROPERTY IN INDIA BY AN NRI: A person resident outside India who is a citizen of India may

acquire any immovable property in India other than agricultural/plantation/farm house. TRANSFER OF PROPERTY IN INDIA BY AN NRI: A person resident outside India who is a citizen of India may -

Transfer any immovable property in India to a person resident in India.

Transfer any immovable property other than agricultural or plantation property or farmhouse to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India. ACQUISITION OF PROPERTY IN INDIA BY A PERSON OF INDIAN ORIGIN A person of Indian origin resident outside India may -

Acquire any immovable property other than agricultural land/farm house/ plantation property in India by purchase, from out of Funds received in India by way of inward remittance from any place outside India or Funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act.

Acquire any immovable property in India other than agricultural land / farm house /plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India

Acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India

It is necessary for a PIO to purchase property through NRE or NRO accounts. TRANSFER OF PROPERTY IN INDIA BY A PERSON OF INDIAN ORIGIN A person of Indian origin resident outside India may -

Transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India

Transfer agricultural land/farm house/ plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India

Transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India.

Transfer an immovable property being agricultural land or plantation property or farmhouse in India by way of a gift or sale to a person resident in India without any permission from the RBI provided that the purchaser is a resident as well as a citizen of India.

ACQUISITION OF IMMOVABLE PROPERTY FOR CARRYING ON A PERMITTED ACTIVITY

A person resident outside India who has established in India in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business for carrying on in India any activity, excluding a liaison office, may -

Acquire any immovable property in India, which is necessary for or incidental to carrying on such activity; Provided that all applicable laws, rules, regulations or directions for the time being in force are duly complied with; and the person files with the Reserve Bank a declaration in the form IPI annexed to these regulations, not later than ninety days from the date of such acquisition

Transfer by way of mortgage to an authorised dealer as a security for any borrowing, the immovable property acquired in pursuance of clause (a).

REPATRIATION OF SALE PROCEEDS

A person referred to in sub-section (5) of Section 6 of the Act, or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India who is a citizen of India (NRI) or a person of Indian origin (PIO), the authorised dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely The immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations The amount to be repatriated does not exceed o 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 o 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. In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. In the case of the sale of an immovable property, other than an agricultural land/farm house/ plantation property in India by an NRI or PIO, repatriation of the sale proceeds outside India (including credit to RFC, NRE or FCNR Accounts), is allowed.

Sale proceeds of any immovable property inherited by NRI/PIO from a person resident in India may be remitted abroad but the amount not to exceed USD one million, per calendar year subject to production of documentary evidence in support of inheritance and Tax clearance certificate/no objection certificate from Income Tax authority to authorized dealer for remittances.

The RBI has also now permitted authorized dealers to allow the facility of repatriation of funds by NRI/PIO in their Non-resident Ordinary Rupee (NRO) Account up to US $ 1,00,000 per year representing the sale proceeds of the immovable property held by them for a period of not less than 10 years subject to payment of the applicable taxes. Prohibition on acquisition or transfer of immovable property in India by citizens of certain countries. No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years. GENERAL INFORMATION REGARDING REAL ESTATE:

NRIs and PIOs may acquire any immovable property for residential/commercial purposes in India, other than agricultural/plantation/farm house, without the permission of Reserve Bank of India.

No declaration is required to be made to the RBI. Only information regarding details of the property and costs incurred should be given to the RBI. This will help at the time of repatriation.

No permission from the RBI is required to transfer any immovable property other than the agricultural land or plantation property or a farm house in India by way of sale to a person resident in India.

The lock-in period of 3 years has been done away with.

If property has been acquired through NRE account then repatriation is allowed only for 2 residential properties.

NRI/PIO is permitted to transfer by way of mortgage his residential commercial property in India to an authorized dealer/housing finance institution in India.

NRI/PIO can avail housing loan in rupees from an authorized dealer or housing finance institution in India approved by the National Housing Finance Bank for purchase of residential accommodation or for the purpose of repairs/renovation/improvement of residential accommodation, subject to certain terms and conditions.

Sale proceeds of residential/commercial property received by way of gift by NRI/PIO can only be credited to NRO account.

Sale proceeds of any immovable property in India inherited, by a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin resident outside India), from a person resident outside India cannot be repatriated by him or his successor without prior permission of the RBI.

NRI/PIO can rent out the residential/commercial property purchased out of foreign exchange/rupee funds.

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.

The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.

Residential property can be given on rent if not required for immediate residential use. Rental income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.

NRI's :: FAQ

Foreign companies can make investments or operate their business in a number of ways such as Liaison/Representative office, Branch Office?Project Office, 100% Wholly owned Subsidiary?, and? Joint Venture company. The requisite approval can be granted by Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB). Any company set up with FDI has to be incorporated under the Indian Companies Act with the Registrar of Companies, Ministry of Company Affairs and all Indian operations would be conducted through this company.

Development criteria
Minimum 10 hectares/ 25 acres area to be developed for serviced housing plots For construction-development projects, minimum built-up area of 50,000 sq mts prescribed In case of a combination project, any one of above two conditions would suffice

Investment conditions
Minimum capitalization of US$ 10 million for wholly owned subsidiaries & US$ 5 million for joint ventures with Indian partners

Funds to be brought in within 6 months of commencement of business

Original investment cannot be repatriated before a period of 3 years from completion of minimum capitalization. Investor may be permitted to exit earlier with prior Government approval

Other conditions
At least 50% of project must be developed within of 5 years from date of obtaining all statutory clearances

Investor not permitted to sell undeveloped plots**

Project to conform to norms & standards laid down by respective State authorities

Investor responsible for obtaining all necessary approvals as prescribed under applicable rules/bye-Iaws/regulations of the State

Concerned Authority to monitor compliance of prescribed conditions by developer **Undeveloped plot means where roads, water supply, street lighting, drainage, sewerage & other conveniences have not been made available. It will be necessary that investor provides this infrastructure & obtains a completion certificate prior to sale of serviced housing plot.

Foreign nationals working in India are generally taxed only on their Indian income. Income received from sources outside India is not taxable unless it is received in India. The Indian tax laws provide for exemption of tax on certain kinds of income earned for services rendered in India. Further, foreign nationals have the option of being taxed under the tax treaties that India may have signed with their country of residence. Remuneration for work done in India is taxable irrespective of the place of receipt. Remuneration includes salaries and wages, pensions, fees, commissions, profits in lieu of or in addition to salary, advance salary and perquisites. Taxable payments include all allowances and tax equalisation payments unless specifically excluded. The stock options granted by the employer are taxable as capital gains at the time of sale of shares acquired due to exercise of options.

Some of the important Labour Acts, which are applicable for carrying out business in India, are:

  • Employees Provident Fund and Miscellaneous Provisions Act, 1952
  • Employees State Insurance Act 1948
  • Workmens Compensation Act, 1923
  • Maternity Benefit Act, 1961
  • Payment of Gratuity Act, 1972
  • Factories Act, 1948
  • Dock Workers (Safety, Health & Welfare) Act, 1986
  • Mines Act, 1972
  • Minimum Wages Act, 1948
  • Payment of Bonus Act 1965 Contract Labour [Regulation & Abolition] Act 1970
  • Payment of Wages Act, 1936

India is a signatory to the agreement concluding the Uruguay Round of GATT negotiations and establishing the World Trade Organisation (WTO) and its laws today are WTO compliant. The important regulations dealing with Intellectual Property Rights are:

  • The Patents Act
  • The Trademarks Act
  • The Geographical Indicators of Goods Act
  • The Designs Act

Automatic Route allows Indian companies engaged in all industries except for certain select industries/sectors to issue shares to foreign investors up to 100% of their paid up capital in Indian companies.

Foreign investors have to, however, keep in mind that they may invest freely under the Automatic Route described above but where such investment does not conform to policies of Government of India, a specific approval from Government must be sought. For example, there are Government guidelines on location of industrial units, or there are certain items like explosives or liquor that need an industrial licence. If the Indian company does not conform to the locational guidelines or needs an Industrial licence then it cannot issue shares under the Automatic Route. Automatic Route is also not available to those foreign investors who already have a financial or technical collaboration in the same or allied field or where more than 24% foreign investment is made in a company which is engaged in manufacture of an item reserved for small scale industry. Finally, Sri Lankan nationals and investors from Pakistan & Bangladesh need to apply to Government of India for investing in Indian companies.

If for any of the reasons mentioned above, the Indian company cannot issue shares to foreign investors under the Automatic Route, an application may be made to Secretariat for Industrial Assistance (SIA), Ministry of Commerce & Industry, Government of India, New Delhi.

It is important to note that the Automatic Route is only for issue of fresh shares by the Indian company. Transfer of existing shares from residents to non-residents needs approval from Government of India followed by an approval from Reserve Bank of India.

Yes. However, the rate of dividend offered should not exceed SBI Prime Lending Rate plus 300 basis points. Question: Are all foreign investments repatriable? Whether the dividend thereon be freely repatriated? Answer: Yes. All foreign investments are on repatriation basis except for the cases where NRIs/OCBs choose to invest specifically under non-repatriable schemes. Dividends declared on foreign investments can be remitted freely through an Authorised Dealer (AD).

Non residents can sell shares on Stock Exchange without prior approval of RBI. They can approach a bank for repatriation of the sale proceeds if they hold the shares on repatriation basis and if they have necessary NOC/Tax Clearance Certificate issued by Income Tax authorities.

A Foreign Venture Capital Investor registered with SEBI may make investment in a Venture Capital Fund for an Indian Venture Capital Undertaking, in the manner and subject to the terms and conditions specified in Schedule 6 of RBI Notification No.FEMA 20/2000-RB dated 3-5-2000.
Foreign Venture Capital Investor is an investor incorporated and established outside India which proposes to make investment in Venture Capital Fund(s) or Venture Capital Undertaking(s) in India and is registered with SEBI under SEBI (Foreign Venture Capital Investors) Regulations, 2000.
Indian Venture Capital Undertaking is a company incorporated in India whose shares are not listed on a recognized stock exchange in India and which is not engaged in an activity under the negative list specified by SEBI.
Venture Capital Fund is a fund established in the form of a trust, a company including a body corporate and registered under the Securities and Exchange Board of India (Venture Capital Fund) Regulations, 1996 which has a dedicated pool of capital raised in a manner specified under the said Regulations and which invests in Venture Capital Undertakings in accordance with the said Regulations.
SEBI registered Venture Capital Investors are allowed to invest or disinvest at a price that is mutually acceptable to the buyer and the seller/issuer.

FIPB approval is required. Where original investment was made in foreign exchange, the change is allowed without any conditions; if not, the sale proceed will have to be repatriated to India by opening an NRO account.

Changes in FDI policies are brought out in the form of Press Notes by Department of Industrial Policy & Promotion (DIPP). Soon after releasing the Press Notes to the media, it is also loaded on the Departmental website (http://dipp.nic.in).

International Centre for Alternative Dispute Resolution (ICADR) has been established as an autonomous organization under the aegis of Ministry of Law & Justice to promote settlement of domestic and international disputes by different modes of alternate disputeresolution. ICADR has its headquarters in New Delhi.

NRI's :: Tax Rule's

No taxes to be paid while purchasing property.

Certain taxes to be paid when selling property. If NRI/PIO has held property for less than 3 years then he would have to pay 30% tax. If property has been held for more than 3 years then tax payable is 20%. Tax is payable on rental income too.

At the time of renting out property or repatriation PAN card is required.

NRI's :: Documents required for NRI Home Loans

Documents Required :

Employment/residency related documents:

Photocopies of:

  1. Employment contract (English copy if the contract is not in English, attested by the Embassy/Employer).
  2. Latest work permit.
  3. Details of previous employment.
  4. Identity card issued by current employer.
  5. Continuous discharge certificate (CDC) (for applicants employed in the merchant navy).
  6. Latest salary slip/certificate.
  7. Overseas Bank Account Statement (four months).
  8. Pages with visa stamp on the passport.

Property Related Documents:

  1. Allotment letter from the co-operative society / association of apartment owners.
  2. Receipts for payments made for purchase of the dwelling unit.
  3. Agreement for sale / sale deed /detailed cost estimate from Architect / Engineer
  4. Copy of approved drawings of proposed construction/purchase/extension.

Additional documents be submitted by Person of Indian Origin

Photocopy of PIO card.

If the PIO card is not available, photocopies of any of the following documents::

  1. The current passport, with birthplace as INDIA.
  2. The Indian passport, if held by the individual earlier.
  3. Parents/grandparents Indian passport/birth certificate/marriage certificate substantiating the individuals claim as a person of Indian origin.