NRI CORNER
A NRI refers to an Indian citizen or a foreign national of Indian origin residing outside India for employment, business, or any other purpose. Additionally, an individual is classified as an NRI if their stay in India is less than 182 days during the preceding financial year (April to March).
A PIO, or Person of Indian Origin, is an individual who is not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, and who, at any point, held an Indian passport or whose father or grandfather was an Indian citizen by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
A resident is a person who lived in India for more than 182 days during the previous financial year (April-March) and who came to or stayed in India either for employment, business, or any other vocation.
Yes, a foreign national who is a person resident in India can purchase immovable property in India but only after obtaining the approvals and fulfilling the requirements.
An Overseas Citizen of India (OCI) refers to:
(a) An adult individual who holds citizenship in another country but was previously a citizen of India, became eligible for Indian citizenship at the commencement of the Constitution, or belongs to a territory that became part of India after August 15, 1947.
(b) A minor child of an individual described in clause (a).
It is important to note that individuals who are or were citizens of Pakistan, Bangladesh, or other specified countries are not eligible for OCI registration.
Yes, a person who had bought residential/commercial property/agricultural land/ plantation property/farm house in India when they were an Indian citizen, can continue to hold that property without the approval of the Reserve Bank after becoming an OCI card holder.
Yes, OCI card holders can rent out their properties in India.
- Valid passport
- Address proof
- Permanent Account Number (PAN card)
- A recent photograph
All remittances are subject to payment of taxes as applicable in India – Authorised Dealers are to convince themselves on this aspect.
A person resident outside India may hold, own, transfer or invest in immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India.
Traditionally, NRIs could file their returns by giving power of attorney to someone in India or by sending their forms and documents to a tax expert in India who would file returns on their behalf. Nowadays, the easiest option for NRIs to file their Indian tax returns is by using online platforms. Several online options are available for filing your tax returns.
As an NRI, OCI, or PIO, you are required to file income tax returns in India if you meet either of the following criteria:
- A flat, apartment, villa or a plot are the properties in which an NRI is eligible to apply for home loans
- For construction of a property on a plot of land by self
- To purchase a plot allotted by a society/development authority
- To renovate or improve upon an existing property in India
The eligibility is calculated in the same way as it is done for resident Indians with special emphasis on:
- Minimum of a graduate degree
- Current job profile and relevant work experience
- Likelihood of continuing employment abroad throughout the loan tenure
- Ability to service the loan with an extended tenure if the applicant returns to India
The housing loan must be repaid in full for the entire tenure through direct remittances from abroad via regular banking channels or through other financial accounts permitted by the RBI. Typically, repayments are made using NRO, NRE, NRNR, or FCNR accounts, though the permitted accounts may vary based on RBI regulations.
Home loan for NRIs do not exceed 5 years in major cases. However, some financial institutions offer loans for a term of 7 years as well.
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