Guidelines for NRI's
Who is a non-resident Indian?
An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in UN organisations and officials deputed abroad by Central/state governments and public sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non-resident Indian citizens (NRIs).
Who is a person of Indian origin?
For investments in immovable properties A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, China, Iran, Bhutan, Sri Lanka, or Nepal) is deemed to be of Indian origin if, (i) he held an Indian passport at any time, or (ii) he or his father or paternal grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
What is an OCB?
Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of atleast 60 per cent by individuals of Indian nationality or origin resident outside India as also overseas trusts in which atleast 60 per cent of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them and not in the capacity as ~ nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be atleast 60 per cent.
Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs?
Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60 per cent, the concerned body/trust is required to furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC where the ownership/beneficial interest is directly held by NRIs, and in form OAC 1 where it is held indirectly by NRIs and further that such ownership interest is actually held by them and not in the capacity as nominees.
What are the various facilities available to NRIs/OCBs?
NRIs/OCBs are granted the following facilities : Maintenance of bank accounts in India. Investments in securities/shares of, and deposits with, Indian firms/companies. Investments in immovable properties in India. INVESTMENT IN IMMOVABLE PROPERTY
Do non-resident Indian citizens require permission of Reserve Bank to acquire residential/commercial property in India?
No. An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/plantation property or a farm house. However the purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.