Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
Any acquisition or transfer of immovable property in India by a Non-resident Indians (NRIs), persons of Indian origin, or foreign nationals of non-Indian origin takes place under the Foreign Exchange Management Act, 1999 (“FEMA[1]”) along with Notification No. FEMA 21(R) /2018-RB/GSR 280(E) dated 26.03.2018. The Reserve Bank of India (RBI) is empowered to frame regulations on the acquisition or transfer of immovable property in India by persons who reside outside India.
Foreign Embassies, Diplomats, or Consulate Generals are also permitted to purchase or sell any immovable property in India except that of agricultural land, plantation property, and farmhouse. However, such purchases and sales are subject to clearance obtained from the Ministry of External Affairs, Government of India and the consideration for the acquisition of Immovable property in India should be paid out of inward remittance through banking channels.
A person whether natural or legal, who is a citizen of or incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Hong Kong, Macau, or Korea cannot acquire or transfer any immovable property in India other than on lease for a term not exceeding 5 (five) years and with the prior permission of the RBI. However, this prohibition does not apply to OCIs.
Unless otherwise provided in the Act or Regulations, a non-resident is not permitted to acquire or transfer any immovable property in India. The exceptions to this are:
Any transaction relating to the acquisition or transfer of immovable property shall be undertaken through banking channels after the payment of applicable taxes and other duties or levies in India.
There has been a rapid increase in the interest of non-residents in the acquisition or transfer of immovable property across the globe. India has seen noticeable growth in the interest in non-resident acquisition or transfer of immovable property in India. Even the Indian government is making attempts to ease the process for the acquisition or transfer of immovable property in India by non-residents by making frequent amendments to laws. Therefore, in order to have a hassle-free acquisition or transfer of immovable property in India, the non-resident Indian should be up to date with the laws and regulations applicable at the time of the acquisition or transfer.
Also Read: Procedure for Transmission and Transfer of shares as per Companies Act, 2013
The insurance industry is on the edge of a transformative era. As we enter 2024, technological...
The Indian Cybercrime Coordination Centre reported a rise in digital financial fraud, which has...
During its 203rd meeting on 25th November 2023, the Securities and Exchange Board of India (SEB...
If you want to expand your portfolio beyond standard stocks and bonds, Alternative Investment F...
NBFCs in India encounter significant challenges related to the compounded effects of outstandin...
Are you human?: 1 + 6 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Every institution or an organization requires an adjudicating authority to function in accordance with the rules an...
13 Sep, 2022
As per section (p) of FEMA, the term import means bringing any goods or services into India. Import trade is regula...
10 Sep, 2022