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If you are an NRI looking to buy plots in India and you are tired of reading through 10 different blogs to get a comprehensive guide when you search “Can NRI buy Property in India?” Well, you have landed on the perfect page. The topmost Real Estate Company in Kolkata has brought to you the most informative blog covering all the questions that might rise in your mind. We are here to help you navigate the complexities of purchasing property in India.

Who is an NRI?

An NRI (Non-Resident Indian) is defined by the RBI as a person residing outside India, who is either a citizen of India or a person of Indian origin.

Who is a PIO?

A PIO (Person of Indian Origin) is an individual (excluding citizens from Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan) who at any time held an Indian Passport or who, or their direct ancestors, were citizens of India by virtue of the Constitution of India or the Citizenship Act, 1955. Spouses of Indian citizens or PIOs are also included under this definition.

Is permission required to acquire immovable property in India?

No, NRIs and PIOs do not require permission to acquire immovable residential or commercial properties in India. However, they are not permitted to purchase agricultural land, plantation properties, or farmhouses without specific approvals.

What is the process for paying for acquired immovable property?

The payment for acquired property by NRIs and PIOs should be made either through inward remittances in foreign exchange or from their NRE (Non-Resident External)/FCNR (Foreign Currency Non-Resident) accounts maintained with banks in India.

Can the acquired immovable property be rented out?

Yes, NRIs and PIOs can rent out their property without any restrictions. The rental income can also be remitted abroad without requiring permission from the RBI.

What are the tax implications for NRIs and PIOs on the purchase, sale, or rent of property?

There are no taxes on the purchase of property. However, income generated from rent or proceeds from the sale of the property are subject to tax in India.

Can the proceeds from the sale of the property be remitted out of India?

Yes, proceeds from the sale of the property can be remitted out of India up to the amount originally remitted from abroad for purchasing the property. The property must have been held for at least three years before it is sold.

What are the RBI guidelines for loans to NRIs and PIOs for purchasing properties?

NRIs and PIOs can finance up to 85% of the cost of the property through loans from Indian financial institutions. The rest (15%) must be provided by the buyer through funds in their NRE/FCNR accounts. Loan repayment must also be made from these accounts.

Who can purchase immovable property in India?

Under general permission granted by the RBI, NRIs and PIOs can purchase residential and commercial properties in India. Agricultural land, plantation property, or farmhouses are exceptions unless specific permissions are obtained.

Can NRIs sell the properties they hold in India without the Reserve Bank’s permission?

Yes, NRIs can sell their properties in India without requiring permission from the RBI.

Can NRIs acquire or dispose of residential property by way of gift?

Yes, NRIs are granted general permission by the RBI to acquire or dispose of properties by way of gift from or to a relative who is either an Indian citizen or a PIO, irrespective of their residence.

Can NRIs obtain loans for acquiring a house/flat for residential purposes?

Yes, NRIs can obtain loans from financial institutions like HDFC, LIC Housing Finance, and other authorized dealers, under similar conditions applicable to resident Indians. The loan repayment period should not exceed 15 years and must be done through inward remittance or from NRE/FCNR/NRO accounts.

Why is Investing in Kolkata the Next Big Thing?

Investing in Kolkata's real estate is emerging as a significant opportunity due to its blend of affordability and growth potential. As the city undergoes extensive infrastructural developments, including metro expansions and commercial projects, property values are expected to rise. Additionally, Kolkata offers a rich cultural heritage and strong educational institutions, making it an attractive location for both residential and commercial investments. With government initiatives promoting urban development and a growing IT sector, Kolkata is poised to become a top-tier investment destination in the coming years.

Here's a list of the Top Real Estate Investment that can be done in Kolkata:

  • Central Kolkata: The heart of the city, flats in Central Kolkata are ideal for those seeking high property value retention and excellent rental yields due to its proximity to business hubs and cultural landmarks.

  • Madhyamgram: With affordable property prices and rapid infrastructural development, flats in Madhyamgram offer great potential for appreciation. It's increasingly popular among homebuyers due to improved connectivity and peaceful surroundings.

  • Elgin Road: A prime location in Kolkata, Elgin Road is known for its upscale residential options and bustling commercial activities. Investing in Elgin Road guarantees proximity to luxury shopping, entertainment, and the city's best schools and colleges.

  • Garia: A rapidly developing suburb with a promising future due to the extension of the metro network and robust social infrastructure. Flats in Garia are attractive for its lower entry prices and high growth potential.

  • Tollygunge: Famous for its film studios and golf courses, Tollygunge is a well-established area with robust infrastructure. It is preferred for residential investments due to its serene environment and connectivity to major city parts.

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