NRI Section
A Person of Indian Origin (PIO) means a citizen of any country (other than Bangladesh or Pakistan),
if:
(a) He/She at any time has held an Indian passport or
(b) He/She or either of his/her parents or grandparents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995) or
(c) He/She is a spouse of an Indian citizen or of a person referred to in (a) or (b) above.
(a) He/She at any time has held an Indian passport or
(b) He/She or either of his/her parents or grandparents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995) or
(c) He/She is a spouse of an Indian citizen or of a person referred to in (a) or (b) above.
If a person is NRI or PIO, she/he can, without the permission from theReserve Bank, open, hold
and maintain the different types of accounts given below with anAuthorized Dealer in India, i.e.,
a bank authorized to deal in foreign exchange. NRO Savings exchangeaccounts can also be maintained
with the Post Offices in India. However, individuals/ entities of .Bangladesh and Pakistan require
the prior approval of the Reserve Bank.
According to the regulations of FEMA and RBI, an NRI is permitted to make specific investment in
real estate. A NRI is allowed to do the following investments in property:
a.Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
b. He can get any immovable property as mentioned above by gift from Indian resident, Indian citizen residing outside India or person of Indian origin.
c. Obtain any property by inheritance.
d. He can transfer immovable property to any resident of India by sale.
e. He can transfer any agricultural land, farm house or plantation land to any resident of India by gift.
f. He can also transfer his residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.
a.Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
b. He can get any immovable property as mentioned above by gift from Indian resident, Indian citizen residing outside India or person of Indian origin.
c. Obtain any property by inheritance.
d. He can transfer immovable property to any resident of India by sale.
e. He can transfer any agricultural land, farm house or plantation land to any resident of India by gift.
f. He can also transfer his residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.
An NRI has to shell out stamp duty as well as registration fees at the time of purchase. He is entitled
to avail all sorts of benefits at par with Indian residents on the interest paid for the home loan.
However, the tax process becomes full of twists and turns if the property is leased.
As the amount of income received from such action comes under the head of income from property, therefore, standard deduction is applicable as per the standard slab. In this case, the NRI wil l have to pay the applicable tax if he is residing in the country where worldwide income is taxable unless the country has Double Tax Avoidance Agreement with India.
The special advantage for an NRI is the amount which is paid for the interest of home loan is deductible from NRI's taxable income without any upper limit. The NRI is legally responsible for the payment of capital gains tax as prescribed under the Income Tax Act, in case he sells off the property.
As the amount of income received from such action comes under the head of income from property, therefore, standard deduction is applicable as per the standard slab. In this case, the NRI wil l have to pay the applicable tax if he is residing in the country where worldwide income is taxable unless the country has Double Tax Avoidance Agreement with India.
The special advantage for an NRI is the amount which is paid for the interest of home loan is deductible from NRI's taxable income without any upper limit. The NRI is legally responsible for the payment of capital gains tax as prescribed under the Income Tax Act, in case he sells off the property.