Investment in India is a journey and not a destination. We are providing truthful, complete and accurate information to NRIs to help them make informed decisions.

India has become an important global economic player and a strategic partner with the US. Within the NRI community living in the US and around the world, there is a growing fascination to explore investing opportunities in India. In general, Indian accounting, investment and tax laws are very complex and different. Understanding the intricacies of Indian tax and investment laws can reap significant financial rewards for NRI investors.
Here we shall try to provide excellent resource for NRI investors who want a deeper understanding of the Indian tax and investment laws. We shall provide description in detail where the Indian law provides special reliefs, exemptions and incentives in the Income Tax Act to NRIs. We give a holistic view of not only the Indian taxes, but also of the RBI/FEMA rules, investment concepts, foreign compliances and reporting requirements.

Our continuous study help us a unique perspective to understand, analyse and guide NRIs in respect of their investment and taxation needs. We extend help NRIs an opportunity to increase their risk-adjusted returns on investments in India while complying with all the applicable rules and regulations.

I encourage NRIs to consult their tax lawyer or an experienced advisor for making strategic investment or compliance decisions.

India offers great opportunities for any investors, whether domestic, non-resident (NRI/PIO) or foreign (FPI), to invest in India and reap the benefits in terms of higher risk adjusted after tax returns.

We believe in empowering NRIs by providing true (full truth), complete and accurate information and enabling them to make quality informed decisions with full disclosure, integrity, confidentiality and ethical behaviour.

Can a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) acquire immovable property in India?

Yes, but such property should not be agricultural land/plantation property or a farm house. He can make payment for such acquisition through normal banking channels by way of inward remittance from any place outside India or by debit to his Non-Resident External (NRE) Foreign Currency Non-Resident (FCNR) or Not Ordinary Resident (NRO) account and not in any other mode. Which means he cannot make payment by travellers cheques or by foreign currency notes and so on.

Can an NRI or PIO transfer immovable property in India? What are the procedures involved?

An NRI can transfer any immovable property, including agricultural land/farm house/plantation property in India to a person resident in India (As he became the owners an NRI cannot buy such property, obviously he became the owner before he became an NRI, or received it as inheritance or gift). He can transfer any immovable property (other than agricultural land or plantation property or farm house) to an NRI or to a PIO outside India or to a person resident in India. As a PIO cannot buy such property, obviously he became the owner before he became an NRI/PIO, or received it as inheritance or gift). He can transfer residential or commercial property in India to a citizen of India or to a PIO outside India.

Prior RBI approval is required for transfer but not for gift of immovable property.

Can an NRI or PIO repatriate or transfer the sales proceeds to his account abroad?

Yes, this can be done, if the property was acquired as per the law existing at the time of acquisition, of the.
He has two options to do so:

He may repatriate as much foreign exchange as was remitted into India for purchase of the property. This scheme for repatriation of the original capital is only available for investment in two residential properties, and that too, only if they are held for the purpose of use and investment and not for the purpose of trading (buying and selling properties). If the NRI has more than two properties, this option can be used only for two of them.

He then has to provide for payment of capital gains tax on the sale. After that, he can repatriate the balance amount in dollars, under another scheme for repatriation.

Further, if the NRI had acquired the property out of rupee fund in India, or through gift or inheritance, he cannot repatriate under the first option, but he can use only the second option.