Through portfolio investment scheme - stock exchanges in India. Not possible to acquire commercial office.
Payment from NRO shall be foreign investment.
NRE account are freely repatriable outside India of income from investments in India.
FDI/Repatriation related
I have the following queries in relation to the Commercial office renting activity: 1. Is investment by NRI/OCI/PIO’s in equity shares of an Indian Company (to acquire commercial office and give it on rent thereby earning a rental income by way of dividend) considered a ‘permitted real estate activity’ under FDI. 2. a) Further, If they invest funds from the NRO account in INR, will it be considered as “resident investment” and hence FDI is Not Applicable ? I also understand that Repatriation is allowed unto I mill USD per yr. out of NRO b) If they invest from NRE a/c, then is full amount free for repatriation even if it exceeds the 1 mill usd limit 3. How can we get the NRI/OCI/PIO’s to invest in above business so they also get Repatriation benefit ? Should they invest from NRE a/c OR NRO a/c. What is the criteria. Request a point-wise reply. Thanks.
Asked 6 years ago in Property Law
Religion: Christian
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4 Answers
There is no limit in repatriation from NRE account.
Repatriation from NRO a/c requires prior approval from RBI with a limit of USD 1 millions per financial year.
Purchasing share of Indian company can either be a stock trading or investment activities depending upon the frequency of transactions.
Investment from NRO a/c shall be treated as domestic investment to the extent source of fund is from income accrued in India .
Any investment is subject to above limit of repatriation from NRE or NRO a/cs.
1. No if considered.
2. They can be considered that.
1. It is not a real estate activity, it may be considered as an investment and income derived out of such investment.
2. a. Your understanding is right,
b) You may inquire about this with the CA.
3. Resident individuals are allowed to remit an aggregate sum of $250,000 per financial year (April to March) for any permissible current account or capital account transaction under the Liberalised Remittance Scheme (LRS) without any approval from RBI. This scheme is applicable only to resident individuals.
NRO Account: Repatriability – Principal Not repatriable; (except current income like rent, dividend, pension etc. and remittances indicated under "Repatriation of NRO Funds")
You can acquire – immovable property in India other than agricultural/plantation property or a farm house, if you are an NRI.
- immovable property other than agricultural land/farm house/plantation property in India out of repatriable funds, if you are a PIO.
You can repatriate – sale proceeds of immovable property acquired in India out of your repatriable funds, without any lock-in period.
- refund of application/earnest money/purchase consideration made by house-building agencies/seller on account of non-allotment of flats/plots/cancellation of booking/deals for purchase of residential/commercial properties, together with interest, net of taxes, provided original payment is made out of NRE/FCNR(B) account/inward remittances.
