10 Fera to Fema

7/28/2019 10 Fera to Fema

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DISCLAIMER: THIS IS NOT A LEGAL OPINION OR ADIVCE

We put together some gathered information that may be of use to NRIs. Please do

your due diligence since we claim no responsibility for any consequence arising outof using this information.

This information is put together from Reserve Bank of IndiaReserve Bank of India.You may visit their site by pressing cntrl+click for the latest information.

1. Which Address Should We Use & Can we repatriate our investments?

At the time of registration, your presence or presence of some one you nominate is

required. We also need to provide with an address proof doc (e.g., driving license orpassport).

If you intend to remit the investment (not profit), you have to show your foreign

address. PLEASE GO THROUGH THE INVESTMENT ROUTING PART BELOW.

SALE PROCEEDS (INVESTMENT ONLY AND NOT THE PROFIT) CAN BE

REPATRIATED.

YOU HAVE TO REMIT FUNDS THROUGH Foreign Exchange

Inward Remittance from abroad.

Rules for Acquisition & Transfer by Foreign Citizen

NRIs

1.

Purchase / Acquisition :

There is a general permission to acquire any

immovable property (other than agricultural land,

plantation or farm-house property) by way of purchase,

provided the payment is made out of foreign exchange

inward remittance or any Non Resident bank account inIndia, i.e.NR(E),FCNR(B) or NRO a/c..

2.

Acquisition by way of Gift :

General permission is granted to acquire any


plantation or farmhouse property) by way of gift from

a person (donor) who is
http://rds.yahoo.com/_ylt=A9j8eOZ6bK1G6S0BIgK6b9AF;_ylu=X3oDMTB2cXVjNTM5BGNvbG8DdwRsA1dTMQRwb3MDMQRzZWMDc3IEdnRpZAM-/SIG=11fbihja3/EXP=1185857018/**http%3A/www.fema.rbi.org.in/http://rds.yahoo.com/_ylt=A9j8eOZ6bK1G6S0BIgK6b9AF;_ylu=X3oDMTB2cXVjNTM5BGNvbG8DdwRsA1dTMQRwb3MDMQRzZWMDc3IEdnRpZAM-/SIG=11fbihja3/EXP=1185857018/**http%3A/www.fema.rbi.org.in/http://i.e.nr/http://rds.yahoo.com/_ylt=A9j8eOZ6bK1G6S0BIgK6b9AF;_ylu=X3oDMTB2cXVjNTM5BGNvbG8DdwRsA1dTMQRwb3MDMQRzZWMDc3IEdnRpZAM-/SIG=11fbihja3/EXP=1185857018/**http%3A/www.fema.rbi.org.in/http://i.e.nr/http://rds.yahoo.com/_ylt=A9j8eOZ6bK1G6S0BIgK6b9AF;_ylu=X3oDMTB2cXVjNTM5BGNvbG8DdwRsA1dTMQRwb3MDMQRzZWMDc3IEdnRpZAM-/SIG=11fbihja3/EXP=1185857018/**http%3A/www.fema.rbi.org.in/


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01.

a person resident in India, or

02.

a person resident outside India (an NRI )who isIndian citizen or foreign citizen of Indian origin.

3.

Acquisition by way of inheritance :

General permission is granted for inheritance of

immovable property including agricultural land,

plantation or farm-house property from

01.


02.

person resident outside India who may be an Indian

citizen or foreign citizen of Indian origin provided

such person had acquired said property in accordance

with the provisions of Foreign Exchange Law in force

at the time of acquisition. i.e. FERA, 1973 or FEMA

1999.

Hence Agricultural land, plantation or farmhouse

property can be acquired by way of inheritance only.

4.

Transfer / Sale :

General permission is granted for sale of any


plantation or farmhouse property) to a person who is

resident in India.

5.

Transfer of residential or commercial property by way

of gift:


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General permission is granted to gift residential or

commercial property to

01.


02.

a person resident outside India who may be an Indian

citizen or foreign citizen of Indian origin,

6.

Transfer of agricultural land, plantation or

farmhouse property by sale/ gift:

General permission is granted to sell or gift such

property to a person who is resident in India and alsoan Indian citizen.

[ Regulation 4 of F.E.M. (Acquisition and transfer of

Immovable Property in India) Regulations, 2000.]3

Mode of Payment

1

The payment for purchase of immovable properties is

required to be made from NRI's bank account, being:

01

Non Resident External Account (NRE);

02

Foreign Currency Non Resident (B) Account

(FCNR)(B),or

03

Non Resident Ordinary Account (NRO), or

IForeign Exchange nward Remittance from abroad.

2

It is advisable to retain records of payment made

i.e. bankers certificate.

3All incidental expenses such as stamp duty,


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registration fees etc. should also be paid through

bank only.

Repatriation of Sale proceeds

1

An NRI being an Indian citizen or a foreign citizen

of Indian origin, is allowed to repatriate the sale

proceeds of an immovable property subject to the

following conditions :

01

the acquisition should be in accordance with the

existing Foreign Exchange Laws (i.e. FERA, 73 or

FEMA 99).

02

the purchase price was met out of Foreign Exchange

Inward Remittance or NRE / FCNR (B ) account, and

03

in case of residential properties, repatriation is

restricted to a maximum of two properties.

It may be noted that the eligibility criteria of

holding period of 3 years for repatriation is removed

w.e.f. 29-06-02.[ vide notification no FEMA 65/2002 RB

dated 29-06-02.]4

2 It may be noted that there are no restrictions as

re: repatriation of sale proceeds vis-a-vis number of

commercial or industrial properties.

3

The amount of repatriation is restricted to foreign

exchange equivalent of the purchase price i.e.

profits / gains are not allowed to be repatriated.

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10 Fera to Fema