Posted on: 02-04-09 13:05:48
Quote:
Originally posted by KumarM
Quote:
Originally posted by web2000
If a person owning agricultural and non-agricultural properties in India before becoming a Canadian citizen, what he has to do in this regard? Will he be forced to get rid of these properties and what about the inherited properties?
Thanks
Apply for OCI as soon as becoming canadian citizen. That should take care of the non-agricultural properties.
What would happen when there was no OCI scheme? Does it mean the person had to get rid of all his assets in India after becoming a citizen of another country. What the law says when a person already has ownership of agri/non-agri. property in India before becoming a Canadian citizen. Can someone clarify without considering into account the OCI scheme?
Thanks
Before OCI, there was PIO..
Before PIO (pre Mar 99), I guess there wasn't much crack down or even interest in illegally acquiring immovable property....
In case of some of the Goa crackdowns, foeigners were resident in India at the time of property acquisition (thus legal), but there after they left India (thus not meeting the requirements).
A person resident outside India can hold immovable property in India acquired by way of inheritance from a person resident in India. I guess the same will apply if you had property in India before becoming a citizen of another country - but you may want to check with some real estate lawyers in India.
Some data from RBI -> http://www.rbi.org.in/Scripts/FAQView.aspx?Id=33
AFAIK, with PIO card you cannot buy agricultural properties. But OCI allows you to buy agricultural property. Also, with OCI, you and your kids are eligible to apply to education institutes which require Indian citizenship as a prerequisite.
OCI status does not allow ownership of agricultural land ,
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Some answers available on RBI web site:
Acquisition of Immovable Property in India
Q.1 Who can purchase immovable property in India?
A.1 Under the general permission available, the following categories can freely purchase immovable property in India:
i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India
ii) 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
1. at any time, held Indian passport, or
2. who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India.
Q.2. Whether NRI/PIO can acquire agricultural land/ plantation property / farm house in India?
A.2. No. Since general permission is not available to NRI/PIO to acquire agricultural land/ plantation property / farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.
Q.3. Do any documents need to be filed with Reserve Bank of India after purchase?
A.3. No. An NRI / PIO who has purchased residential / commercial property under general permission, is not required to file any documents with the Reserve Bank.
Q.4. How many residential / commercial properties can NRI / PIO purchase under the general permission?
A.4. There are no restrictions on the number of residential / commercial properties that can be purchased.
Q.5. Can a foreign national of non-Indian origin be a second holder to immovable property purchased by NRI / PIO?
A.5. No.
Q.6. Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?
A.6. No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. In such cases, there is no requirement of taking any permission of or reporting to Reserve Bank
Q.7 Can a foreign national who is a person resident in India purchase immovable property in India?
A.7. Yes, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India.
Q.8 Can an office of a foreign company purchase immovable property in India?
A.8. A foreign company which has established a Branch Office or other place of business in India, in accordance with FERA / FEMA regulations, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for other borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. Further, acquisition of immovable property by entities who had set up Branch Offices in India and incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank to acquire such immovable property. However, if the foreign company has established a Liaison Office, it can not acquire immovable property . In such cases, Liaison Offices, can take property by way of lease not exceeding 5 years.
Q.9 Whether immovable property in India can be acquired by way of gift ?
A.9. (a) Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from
i) a person resident in India or
ii) an NRI or
iii) a PIO.
However, the property can only be commercial or residential. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
(b) A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India through gift.
Q.10. Whether a non-resident can inherit immovable property in India?
A.10. Yes, a person resident outside India i.e.
i) an NRI
ii) a PIO and
iii) a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank.
Q.11. From whom can the non-resident inherit immovable property?
A.11. A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
(a) a person resident in India.
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.
II. Transfer of immovable property in India
(i) Transfer by Sale
Q.12 Can an NRI/ PIO/foreign national sell his residential / commercial property?
A.12. (a) NRI can sell property in India to-
i) a person resident in India or
ii) an NRI or
iii) a PIO.
(b) PIO can sell property in India to
i) a person resident in India.
ii) an NRI or
iii) a PIO – with the prior approval of Reserve Bank
(c ) Foreign national of non-Indian origin including a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank to
i) a person resident in India
ii) an NRI
iii) a PIO
Q.13. Can an agricultural land / plantation property / farm house in India owned / held by a non-resident be sold?
A.13. (a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
(b) Foreign national of non-Indian origin resident outside India would need prior approval of Reserve Bank to sell agricultural land/plantation property/ farm house in India
(ii) Transfer by gift
Q.14. Can a non-resident gift his residential / commercial property?
A.14. Yes.
(a) NRI / PIO may gift residential / commercial property to -
(i) person resident in India or
(ii) an NRI or
(iii) PIO.
(b) foreign national of non-Indian origin needs prior approval of Reserve Bank.
Q.15. Can an NRI / PIO / Foreign national holding an agricultural land / plantation property / farm house in India gift the same?
A.15. (a) NRI / PIO can gift but only to a person resident in India who is a citizen of India.
(b) foreign national of non-Indian origin needs prior approval of Reserve Bank
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by chandresh
Some answers available on RBI web site:
Acquisition of Immovable Property in India
Q.1 Who can purchase immovable property in India?
A.1 Under the general permission available, the following categories can freely purchase immovable property in India:
i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India
ii) 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
1. at any time, held Indian passport, or
2. who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India.
Q.2. Whether NRI/PIO can acquire agricultural land/ plantation property / farm house in India?
A.2. No. Since general permission is not available to NRI/PIO to acquire agricultural land/ plantation property / farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.
Q.3. Do any documents need to be filed with Reserve Bank of India after purchase?
A.3. No. An NRI / PIO who has purchased residential / commercial property under general permission, is not required to file any documents with the Reserve Bank.
Q.4. How many residential / commercial properties can NRI / PIO purchase under the general permission?
A.4. There are no restrictions on the number of residential / commercial properties that can be purchased.
Q.5. Can a foreign national of non-Indian origin be a second holder to immovable property purchased by NRI / PIO?
A.5. No.
Q.6. Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?
A.6. No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. In such cases, there is no requirement of taking any permission of or reporting to Reserve Bank
Q.7 Can a foreign national who is a person resident in India purchase immovable property in India?
A.7. Yes, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India.
Q.8 Can an office of a foreign company purchase immovable property in India?
A.8. A foreign company which has established a Branch Office or other place of business in India, in accordance with FERA / FEMA regulations, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for other borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. Further, acquisition of immovable property by entities who had set up Branch Offices in India and incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank to acquire such immovable property. However, if the foreign company has established a Liaison Office, it can not acquire immovable property . In such cases, Liaison Offices, can take property by way of lease not exceeding 5 years.
Q.9 Whether immovable property in India can be acquired by way of gift ?
A.9. (a) Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from
i) a person resident in India or
ii) an NRI or
iii) a PIO.
However, the property can only be commercial or residential. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
(b) A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India through gift.
Q.10. Whether a non-resident can inherit immovable property in India?
A.10. Yes, a person resident outside India i.e.
i) an NRI
ii) a PIO and
iii) a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank.
Q.11. From whom can the non-resident inherit immovable property?
A.11. A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
(a) a person resident in India.
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.
II. Transfer of immovable property in India
(i) Transfer by Sale
Q.12 Can an NRI/ PIO/foreign national sell his residential / commercial property?
A.12. (a) NRI can sell property in India to-
i) a person resident in India or
ii) an NRI or
iii) a PIO.
(b) PIO can sell property in India to
i) a person resident in India.
ii) an NRI or
iii) a PIO – with the prior approval of Reserve Bank
(c ) Foreign national of non-Indian origin including a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank to
i) a person resident in India
ii) an NRI
iii) a PIO
Q.13. Can an agricultural land / plantation property / farm house in India owned / held by a non-resident be sold?
A.13. (a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
(b) Foreign national of non-Indian origin resident outside India would need prior approval of Reserve Bank to sell agricultural land/plantation property/ farm house in India
(ii) Transfer by gift
Q.14. Can a non-resident gift his residential / commercial property?
A.14. Yes.
(a) NRI / PIO may gift residential / commercial property to -
(i) person resident in India or
(ii) an NRI or
(iii) PIO.
(b) foreign national of non-Indian origin needs prior approval of Reserve Bank.
Q.15. Can an NRI / PIO / Foreign national holding an agricultural land / plantation property / farm house in India gift the same?
A.15. (a) NRI / PIO can gift but only to a person resident in India who is a citizen of India.
(b) foreign national of non-Indian origin needs prior approval of Reserve Bank
Good post.
I still have a confusion.
Let me redefine my question.
If a person who is a Canadian citizen (Held Indian passport in the past) can acquire agri/non-agri property from his parents(Who are Indian citizen) by inheritance. Will the person be forced to sell the property after acquisition?
What will happen to all the assets which he gets by inheritance from his parents?
Thanks
Hi ! Let me make it simpler for you ,, Once you are out of the status as an Indian ( OCI or PIO now ) you cannot possess any agricultural land . U are required to sell the land to the bonafide person . I do not have any link to prove it . I got this info at the consulate personally .
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Growing Old Is Mandatory ..Growing UP is Optional
