What Are The Legal Issues Associated With A NRI Having A British Passport Buying A Business Property In India?
Question asked by Sheena Thomas :
Dear Ms Vatsala Dhananjaya,
Can you please advise on the legal issues with a NRI with a British passport buying a business property in India. The person in question has all family (parents etc) all indians born and settled in India. Also, if a business property is bought in India by the NRI, if he were to sell the property, could he transfer any profit made to an account in the UK.
Thanks in advance for your help.
Sheena Thomas
Can you please advise on the legal issues with a NRI with a British passport buying a business property in India. The person in question has all family (parents etc) all indians born and settled in India. Also, if a business property is bought in India by the NRI, if he were to sell the property, could he transfer any profit made to an account in the UK.
Thanks in advance for your help.
Sheena Thomas
Vatsala Answers:
NRI / PIO may repatriate the sale proceeds of immovable property in India
(a) If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels/ by debit to NRE / FCNR (B) account.
The amount to repatriated should not exceed the amount paid for the property:
1. in foreign exchange received through normal banking channel or
2. by debit to NRE account(foreign currency equivalent, as on the date of payment) or debit to FCNR (B) account.
Repatriation of sale proceeds of residential property purchased by NRI / PIO out of foreign exchange is restricted to not more than two such properties.
Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount up to USD one million, per financial year, as discussed below.
(b) If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bona fide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance.
(a) If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels/ by debit to NRE / FCNR (B) account.
The amount to repatriated should not exceed the amount paid for the property:
1. in foreign exchange received through normal banking channel or
2. by debit to NRE account(foreign currency equivalent, as on the date of payment) or debit to FCNR (B) account.
Repatriation of sale proceeds of residential property purchased by NRI / PIO out of foreign exchange is restricted to not more than two such properties.
Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount up to USD one million, per financial year, as discussed below.
(b) If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bona fide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance.
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