The Reserve Bank of India (RBI) has granted NRIs and PIOs general permission to purchase any residential or commercial property in India. They are not required to seek specific permission from the central bank, nor are they required to send any communication or notification to the RBI in this regard.
PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY / COMMERCIAL PROPERTY.
NRIs holding Indian passports—No permission required.
NRIs holding foreign passports—Intimation to RBI via form.
PI - 7 within 90 days of purchase of property or final payment of consideration.
Funds through NRE/NRO accounts.
SALE OF PROPERTY.
Resiential or commercial Property held by NRIs in India can be sold.
No permission is required from the Reserve Bank of India.
REPATRIATION OF SALE PROCEEDS.
Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.
The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties.
The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.
Application of repatriation (IPI-8) has to be done within 90 days of the sale of the property.
INCOME FROM PROPERTY
NRIs can let out immovable property in India.
The rental income from the investment has to be credited to the NRO account.