The Reserve Bank of India permits an NRI, or a PIO to buy residential and commercial property in India. But they cannot purchase agricultural land, plantation land or a farm house in India. An OCI can also purchase immovable property in India barring agricultural land, plantation property and farmhouses.
Here are the documents an overseas Indian would need when they’re trying to purchase commercial or residential property in India.
OCI/PIO card (In case of OCI/PIO)
PAN card (Permanent account number)
Passport (In case of NRI)
Passport size photographs.
An NRI, PIO or OCI can purchase immovable (commercial & residential) property in India using their repatriable funds. But a major clause regarding the purchase is that none of the payments can be made in foreign currency.
The buyer has to make the purchase in rupees through funds received in India via normal banking channels, or through funds maintained in any non-resident account under FEMA and RBI regulations.
Another condition is that the amount to be repatriated should not exceed the amount paid for the property in foreign exchange received through normal banking channel or by debit to an NRE account.
Also, any rent collected from the property is taxable, and the owner will have to obtain a PAN card and file their income tax returns.
Thus obtaining PAN card for the said purchase is essential