Yes, NRIs can buy any number of properties in India even if they are currently not residing in India. NRIs do not require any permission from the RBI to buy properties in India. This is due to the RBI allowing non-resident Indians to invest in both residential and commercial buildings in general.

There is a provision in the Foreign Exchange Management Act (FEMA) that forbids non-resident Indians from investing in farmland, farmhouses, or plantation assets in India. This provision was established in 1999 and put into effect in June 2000.

A person of Indian Origin or a PIO is anyone who is of Indian descent and who is not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan and who:

• at any time held an Indian passport, or
• who was a citizen of India by virtue of the Indian Constitution or the Citizenship Act of 1955, or whose father or paternal grandfather was an Indian citizen

A foreign national of Indian origin may permanently reside and work in the Republic of India under the Overseas Citizenship of India (OCI) immigration status.

Yes, under the general permission provided by the Reserve Bank, property other than agricultural land, farmhouses, and plantation properties may be purchased by NRIs provided the purchase consideration is satisfied either out of inward remittances in foreign exchange through standard banking channels or out of funds from the purchaser’s NRE/FCNR accounts held with Indian banks, and a declaration is submitted to the Central Office of the Reserve Bank in form IPI 7 within 90 days.

Property purchases alone do not trigger income tax. However, any income derived from owning it, whether in the form of rent (if it is rented out) or the annual value of the home (if it is not rented out and is not the only residential property owned by that person in India), as well as any short- or long-term capital gains from the sale of the home or a portion of it, is taxable in the owner’s hands.

The Reserve Bank has given permission to some financial institutions that provide housing finance and permitted dealers to give housing loans to NRI citizens for the purchase of an NRI house or flat for self-occupation subject to certain requirements. The criteria for the loan’s purpose, collateral and amount will be the same as those that apply to Indian residents. The loan must be repaid within a maximum of 15 years using funds from inward remittances received through banking channels or from funds retained in the investors’ NRE/FCNR/NRO accounts.

The following is the list (non-exhaustive) of documents required for NRIs to buy property in India:

• PAN card (Permanent Account Number)
• OCI / PIO card (In case of OCI / PIO)
• Passport (In case of NRI)
• Passport size photographs
• Address proof

India is a desirable country for real estate investment due to its significant expansion in a number of industries. India may have the second-largest economy in the world, according to a survey. This shows that for NRIs, investing in this nation is a wise choice.

NRIs are as entitled to tax benefits as resident Indians in terms of the tax implications of non-resident Indians purchasing property in India. Under section 80C, an NRI may claim deductions up to 1.5 lakh. Additional benefits of purchasing real estate with NRI loans include the fact that NRIs are not limited in their ability to claim interest charges from taxes. In place of maintenance, a flat 30% tax claim may also be made on any rent revenue. Additionally, there is an additional wealth tax exemption if the real estate property is left vacant.

PIOs or Persons of Indian Origin are foreign citizens of Indian ancestry who have held Indian passports in the past or who can prove an Indian ancestor. PIOs are eligible to purchase property in India under the General Permission Act without requesting RBI’s approval.

However, in order to pay for the same, either assets kept in NRE/FCNR(B) accounts or cash transferred to India through regular banking channels must be used. An alternative method of payment is through NRO(Non-Resident Ordinary) accounts kept in India. Payments from outside of India, in foreign currency, or using traveller’s checks are not permitted.

The number of residential or commercial properties an NRI can own in India is unrestricted. However, the legislation prohibits NRIs from owning any type of farmhouse, plantation property, or agricultural land in India.

The Reserve Bank has given all overseas nationals of Indian descent, whether they reside in India or abroad, permission to buy real estate in India for their legitimate residential needs. As a result, they are exempt from needing Reserve Bank approval.

Within 90 days of the date of the purchase of the immovable property or the final payment of the purchase consideration, they must file a declaration in form IPI 7 with the Central Office of the Reserve Bank in Mumbai, along with a certified copy of the document proving the transaction and a bank certificate regarding the consideration paid.

Yes, whether a person of Indian origin (PIO) or an Indian citizen, regardless of whether they reside in India or not, is related, the Reserve Bank has given NRIs wide authorization to acquire or dispose of NRI India Properties by way of gift from or to a relative.