NRI FAQ's


1. Why Invest With Us?
2. Who is a Non-Resident Indian (NRI)?
3. Who is a PIO?
4. What I need to know to invest in real estate as NRI in India?
5. I am a NRI, what are the payment options while purchasing property in India?
6. I am an NRI. I want to buy a flat in India in my mother's name. Does my mom have to pay tax on it or are there other complications? My mom has no other source of income.
7. Loan/Bank Queries - Can NRIs avail of Home loans, and also if it is a joint property with resident Indian?
8. Are foreign citizens of Indian origin, holding PIO cards, and eligible for availing housing loans from banks/institutions for purchasing residential property in India?
9. What are the common documents to be submitted along with the application?
10. If an NRI buys a residential property in India and rents it out, is the resulting rental income repatriable. Also, are the capital gains resulting from the sale of a residential property in India repatriable?
11. Are the entire proceeds of real estate income (including profits from capital gains) repatriable? Is rental income repatriable? What type of account should be used to transfer money for real estate purchase?
12. Is there any time limit of holding of property for the purpose of repatriations?

1. Why Invest With Us?

 Real estate in India has a huge market potential. India is one of the largest economies in the world and has the third largest GDP in the entire continent of Asia. The expected size of organized Indian real estate sector by 2010 is USD 45-50 billion with a potential to touch USD 90 billion in 10 years. Property Mart has been growing with the industry for the last two decades having carved a niche for itself through the path breaking projects in the country. So, here's why you should invest and prosper with us:

  • Transparency and customer orientation are the foundations that guide Property Mart. So you can sit back and relax while investing with us as we take every step to ensure the safety of your investment through our impeccable quality of construction, customer satisfaction and delivery.
  • Our Team is there to help you in Gurgaon, one of the fastest growing commercial hubs of India. Global connectivity and proximity to the international airport has further spurred more MNC's setting base in Gurgaon. Some of the big names already stationed here include Coca Cola, Pepsi, Sony, Honda, Maruti, IBM, American Express, Frito-Lays and lots more. So, you can expect your property to grow faster in Gurgaon to fetch you better returns.
  • We promote the sales of Green buildings practice that increases the efficiency with which buildings use resources - energy, water, and materials - while reducing building impacts on human health and the environment, through better design, construction, operation and maintenance.
  • We fulfill all your investment needs as we cater to a wide spectrum of projects. You can associates with us in the following types of projects:
    • Residential (Housing)
    • Commercial (Office space)
    • Retail (Shopping)
    • Hospitality (Hotels)
2. Who is a Non-Resident Indian (NRI)?

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. (Person Posted in U.N organizations and official deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-temporary assignments are also treated as non-residents).

3. Who is a PIO?

A citizen of another country is a PIO - person of Indian origin, if he has held an Indian passport at any time or if he, his father or his grandfather has been a citizen of India. A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan is not regarded as a PIO.

4. What I need to know to invest in real estate as NRI in India?

 Following rules are required to be known by you to invest in real estate in India:


Exchange Control Regulations affecting the acquisition of residential property in India Consequent to the liberalisation in Exchange Control policy and procedures, certain relaxations in the existing regulations and procedures governing the acquisition, holdings, etc. of immovable property in India, have been announced. Immovable property may be a residential house, a residential flat or a plot of residential house.
The current position therefore is as under:

Non-resident Indian holding Indians passport do not require any permission from RBI for acquiring Immovable Property for bona fide residential purposes, as section 31 of FERA 1973 is not applicable to them.

Non-resident Indians holding Indian passport may pay the purchase consideration either by remittance of funds from abroad through normal banking channels or out of NRO Account or out of NRE Account or out of FCNR Account.

As per the recent relaxation RBI has granted General Permission to Non-resident Indians holding Foreign Passport (i.e. Foreign Citizens of Indian Origin) to acquire, hold, transfer or dispose off by way of sale or inheritance immovable properties situated in India provided;

The property is for the purchasers bona fide residential purpose.

the purchase consideration is met either by remittance of funds from abroad through normal banking channels or out of NRE/FCNR Account or out of FCNR Special Account. Income accruing by way of rent from the properties purchased or acquired by inheritance will have to be credited to the non-resident ordinary (NRO) account even if the purchase consideration was met out of NRE / FCNR Account.

Foreign citizens of Indian origin are however required to declare the properties to RBI within a period of 90 days from the date of purchase in Form IPI 7.

The following documents must be submitted along with the declaration.

A certified copy of the purchase deed or a certificate from the Co-operative Housing Society or an Association of the apartment owners as an evidence of transfer / registration of the property in the declarant's name.

Certificate from the declarant's bankers in India evidencing receipt of inward remittance(s) in foreign exchange through normal banking channel or withdrawal of funds from the declarant's NRE / FCNR account / FCNR Special Deposit Account and payment of consideration for the property out of those funds.

Where a Foreign Citizen of Indian origin wishes to acquire a property out of funds held in NRO Account then the aforesaid general permission does not hold and a prior permission from RBI will be required which can be applied for in Form IPI.1.

Where a Foreign Citizens of Indian origin wishes to acquire a property from the sale proceeds of another property prior permission of RBI is essential and may be obtained by applying in Form IPI I.

Any number of properties can be acquired by a non-resident Indian regardless of whether they are holding Indian passport provided they are required for bona fide residential purposes.

5. I am a NRI, what are the payment options while purchasing property in India?

Non-resident Indians holding Indian passport may pay the purchase consideration either by remittance of funds from abroad through normal banking channels or out of NRO Account or out of NRE Account or out of FCNR Account.

6. I am an NRI. I want to buy a flat in India in my mother's name. Does my mom have to pay tax on it or are there other complications? My mom has no other source of income.

Under Section 31 (1) of FERA 1973, General Permission has been granted to persons of Indian origin whether holding Indian passports or foreign passports to acquire, transfer or dispose off residential properties (restricted to two houses) situated in India by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin, whether resident in India or not. 


For enabling you to buy the house in your mother's name you must transfer the money through normal banking channels in her account in India and she should buy the flat in her name from the money remitted by you. As the money remitted by you will be considered a gift to your mother, there will be no tax payable by her.

7. Loan/Bank Queries - Can NRIs avail of Home loans, and also if it is a joint property with resident Indian?

Yes, NRIS can avail home loans. They can avail loan for buying or constructing a new home, extending or improving an existing home or even to buy a plot.

8. Are foreign citizens of Indian origin, holding PIO cards, and eligible for availing housing loans from banks/institutions for purchasing residential property in India?

Yes, the bankers in India are permitted by RBI to grant loans to PIOs for acquisition of residential property in India, subject to certain conditions. You may contact your bankers for the terms and conditions subject to which such loans would be granted to you.

9. What are the common documents to be submitted along with the application?

The following documents are required along with the application form: 


Photocopy of the labour contract duly countersigned by your employer (translated to English for non-English documents).

Latest salary certificate (in English) specifying the following:

Name (as it appears in the passport). Date of joining. Passport Number. Designation. Perquisites and salary. Photocopy of labour card/identity card. Photocopy of valid resident visa stamped on the passport. Photocopy of monthly statement of local bank account. Property related documents.

10. If an NRI buys a residential property in India and rents it out, is the resulting rental income repatriable. Also, are the capital gains resulting from the sale of a residential property in India repatriable?

The rental income, being current account transaction, is repatriable. Repatriation of sale proceeds is subject to certain conditions. The amount of repatriation cannot exceed the amount paid for acquisition of the immovable property in foreign exchange.

11. Are the entire proceeds of real estate income (including profits from capital gains) repatriable? Is rental income repatriable? What type of account should be used to transfer money for real estate purchase?

 The repatriation of Sale proceeds shall not exceed the foreign exchange brought into acquire the property. Yes, rental income is repatriable, subject to taxes. You may purchase the real estate by remitting the money in foreign exchange through normal banking channels. Alternatively, you may open foreign currency account with bankers.

12. Is there any time limit of holding of property for the purpose of repatriations?

 No, there is no time limit for holding the property. Such time limits earlier existing have been removed.