Financial institutions offer various housing loans. Prominent among these are:
According to I.T. Act | FERA Act
An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. Organisations and Officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Foreign citizens of Indian Origin are treated on par with non-resident Indian Citizens (NRIs) for the purpose of certain facilities.
Main categories of NRIs
The following are the main three categories of NRIs:-
"Persons of Indian Origin" means a foreign citizen (not being a citizen of Pakistan, Bangladesh and other countries as may be specified by the Central Government from time to time) if,
NRIs are granted the followings facilities:
No. An NRI does not require any permission to acquire any immovable property in India other than agricultural/ plantation property or a farmhouse.
They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin 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 banks in India and a declaration is submitted to the Central Office of Reserve Bank in from IPI 7 within period of 90 days from the date of purchase of the property/final payment of purchase consideration.
Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.
Yes. Stamp Duty is payable on Sale Deed or transfer documents and the amount varies from State to State. The State may also collect levies/cess, apart from the Stamp Duty.
Yes. Value exceeding Rs. 100/- on any Sale/Transfer documents of immovable property, registration is mandatory and documents should be registered in the jurisdictional office of the Registrar of Assurances or Sub-Registrar as may be provided by the Registration Rules of the State.
Yes. GOI in general has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.
If the stamp duty is not paid on time it attracts penalty at the rate of 2% per month of the stamp duty. Penalty cannot exceed twice the amount of the stamp duty that has to be paid according to Govt. rules and regulations prevailing as on the date.
A purchaser must take following precautions while purchasing a property:
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