The India growth story is selling the world over. The 9-percent-India offers several investment opportunities. Our stock exchanges have been on a secular bull run for the last few years, real estate investments are yielding high returns and the foreign exchange coffers are full. These factors make investing in India compelling not just for those of us who live here, but also for non-resident Indians (NRIs) and persons of Indian origin (PIO) who want a share in their home country’s progress even though they don’t live here.NRIs can acquire immovable property like land, a house or a fl at in India, just like a resident. But they cannot hold agricultural land, plantation property or a farmhouse. As an NRI, you can buy, rent and sell your property. The sale proceeds of up to two residential properties can be repatriated. This applies if you are either an NRI or a PIO.If you net any capital gains from selling the property, this should be credited to the non-resident ordinary rupee (NRO) account, from where you can repatriate an amount up to $1 million per financial year. An NRO account is an account opened in Indian rupees and can be used to route earnings made on investments in India or make legitimate local payments.If you bought your property while you were residing in India and had taken a loan for it here, you can repatriate the proceeds from the sale, provided the loan has been repaid by remitting funds from abroad or debiting your non-resident external rupee (NRE) account. An NRE account is opened with funds remitted from abroad, but is maintained in Indian rupees.
You can also rent out your property in India without any approval from the Reserve Bank of India (RBI). The rent you receive can either be credited to the NRO or NRE account, or remitted abroad. PIOs who are citizens of Pakistan, Sri Lanka, Bangladesh, China, Afghanistan, Iran, Nepal and Bhutan cannot remit sale proceeds of immovable property.
Last edited by totallyproperty; 31-03-2008 at 10:35 AM.
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