A. UK
B. Ireland
C. Germany
D. France
E. Singapore
F. AUSTRALIA
G. Newzealand
H. Canada
I. USA

Investment in property other than agricultural property is generally permitted by RBI for NRI, No special approval is required from RBI. Same rule is applicable for investment in Under Construction Real Estate as applicable to Normal Resident of India.

NRI
Payment for acquisition of property can be made out of:

• Funds received in India through normal banking channels by way of inward remittance from any place of India, or
• Funds maintained in NRE/FCNR/NRO accounts

Such payment can not be made either by traveller’s cheque or by foreign currency notes or by other mode than those specially mentioned above.

NRI Property and Repatriation Guidelines

Agricultural property cannot be purchased by NRI, unless special permission is provided by RBI.

HOW TO REPATRIATE FUNDS TO SOURCE COUNTRY

On Sale of Property and on receiving the amount in INR in NRO Account

NRI is typically required to submit the following documents to AD Bank for remittance of funds from his / her NRO account to overseas bank account or from NRO to NRE Account:

• Form 15CA – Self Declaration by remitter of funds (NRI)
• Form 15CB – Chartered Accountant’s Certificate for certifying the appropriateness of taxes deducted / paid
• Form A2 and Outward Remittance Form
• Documentary proof of sources of funds and payment of applicable taxes
• Any other documentary proof requested by the AD Bank

Funds from NRE Account can also be done through net banking (online) if provided by your respective AD bank.

QUANTUM

(a) If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels or by debit to ‘NRE / FCNR account

The amount to be 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.

(b) If the property was acquired out of Rupee sources, NRI may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance.

Remittances exceeding USD 1,000,000 (US Dollar One million only) in any financial year require prior permission of the Reserve Bank.

A. UK
B. Ireland
C. Germany
D. France
E. Singapore
F. AUSTRALIA
G. Newzealand
H. Canada
I. USA

Assuming said person is Citizen of India. So same rule as applicable to NRI in above mentioned point. He falls under same category of NRI.

Long Term Capital Gain (LTCG): When a property is sold after holding it for more than two years, the gains arising from such property will be treated as LTCG. Tax Rate 12.5% without Indexation

Short Term Capital Gain (STCG): Whereas in a case where a property is sold within two years of acquiring it - the gains arising on such property will be treated as STCG. As per normal slab rate for NRI like applicable on resident Individual.

Exemption u/s 54/54F can be claimed for LTCG by purchase of residential property within specified time. Value of exemption in any case can not exceed Rs 10 crore

Tax credit in respect of Tax paid in India would be allowed in the Resident Country of Individual as per DTAA . India has DTAA with all the abovementioned countries