A Person of Indian 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 holds an Indian passport at any time or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

Yes, a non-resident Indian can buy either a residential or commercial property in India. Further, there is no limit on the number of residential or commercial properties that an NRI can purchase in India.

Yes, an NRI, PIO, or a foreign citizen of non-Indian descent who lives outside of India can inherit and possess immovable property in India from a citizen of the country.

Under the general permission, the following categories can freely purchase immovable property in India:

Non-Resident Indian (NRI) – that is a citizen of India residing outside India

Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who at any time, held an Indian passport or whose father or grandfather was a citizen of India by virtue of the constitution of India or the Citizenship Act, 1955 (57 of 1955).

However, the general permission covers only the purchase of a residential and commercial property.

Non-resident Indians (NRIs) and overseas citizens of India (OCIs) don’t require prior approval for buying or selling immovable properties like houses in the country, according to the Reserve Bank of India (RBI).

Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farmhouse/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE/FCNR accounts maintained with the banks in India and a declaration submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

No. NRI/PIOs do not have the necessary authorization to purchase agricultural land, plantation property, or a farmhouse in India. Such projects (proposals) will require specific consent from the Reserve Bank of India. The plans are being studied in consultation with the Indian government.

Just the acquisition of property is not subject to income tax. However, any income derived from ownership of it, whether in the form of rent (if it is rented)/the annual value of the house (if it is not rented and is not the only residential property owned by that person in India), and/or capital gains (short or long term) arising on the sale of this house or a portion of it, is taxable in the hands of the owner.

NRIs can repatriate the original investment amount and gains from up to two residential properties. The process is subject to FEMA regulations and proof of funds brought in via NRE/NRO accounts.