Dear Sir,
A: The following are the salient provisions related with purchase and sale of immovable properties by NRIs and PIOs in India.
An NRI can purchase an immovable property in India. He may transfer the property to any Resident, NRI or PIO. However, agricultural land or plantation property or farm house can be transferred only to Indian citizens permanently residing in India.
An NRI or PIO can acquire immovable property in India by way of:
a) purchase out of funds received by way of inward remittance through normal banking channels or by debit to his NRE, FCNR or NRO accounts. Such payments cannot be made either by travelers’ check or by foreign currency notes (Circular AP DIR 5 dt. 16.8.06). No payment can be made outside India.
b) gift from a Resident, NRI or PIO.
A PIO may transfer immoveable property by way of
a) sale to a resident.
b) gift to a resident, NRI or PIO.
c) sale or gift of agricultural land, plantation property or farmhouse in India to a resident who is a citizen of India.
NRIs and PIOs can receive inheritance of any immovable property. However, in the case of a PIO, if the property is received from an NRI or a PIO, it should have been acquired by the original holder in accordance with the provisions of the law in force at its acquisition.