URGENT - Can I buy real estate in India?

johnnkamala said:
When you obtained US citizenship you lost Indian Citizenship and all rights of an Indian citizen. You no longer have legal title to your property. This can cause you real problems if any nosey person decides to push it. There are probably many approaches to this problem but what we did is put the land in our brother's name and had a lifetime lease made for the use of the land to us. One problem with this approach is that our children cannot inherit the land, but they want to live in America anyway and have no interest. By Indian law (not US) you can't be both an Indian citizen and an American. By Indian law (not US) you cannot own property in India unless you are an Indian citizen. You really should have looked into these matters before you decided to obtain citizenship in another country but I hope you will find a workable solution. Since you seem a bit naive about legal matters, I suggest that you be very careful who you put your trust in. Many people, even family (especially family in our case), will try to cheat you out of what is yours if there is valuable property involved.
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QUESTION:
going by this logic, we cannot inherit any property from parents in india?

or is this whole discussion pertain to only buying property? what if you
legally inherit property from a parent? Can you hold on to that or do
you have to dispose that off? sorry if this subject has been covered

thanks.
 
I didn't have a PIO

I am a no longer Indian Citizen, I have Indian visa on my passport. I have purchased property and sold in India through legal channels. No one asked for my status/PIO/citizenship.

However, there is a law, that if you buy property and cannot sell it within I think 8 or 10 years, otherwise you are subject to some heavy tax.
 
boxerbhai said:
Gurus,

I already have property (lets say a flat in Delhi) in India prior to US citizenship. After citizenship, would it cause any problems ?
-----------------NO
Would I need to pay any extra tax, etc ?
----------NO, but if you give it on rent then rental income will go to NRO account not to NRE Account
Can I move back to India for good with US citizenship and live in the propertly ?
-------YES, for entry to India you need PIO or OCI or Visa
Please advice.

Thanks,

Boxerbhai
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benign said:
QUESTION:
going by this logic,
we cannot inherit any property from parents in india?
---you CAN
or is this whole discussion pertain to only buying property?
-------------- it is mixed discussion. One can buy residential property but not agricultural land or farmland according to FEMA or RBI.
what if you
legally inherit property from a parent?
-----------you can
Can you hold on to that or do
you have to dispose that off?
-------you can hold that
sorry if this subject has been covered

thanks.
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NoJob said:
I am a no longer Indian Citizen, I have Indian visa on my passport. I have purchased property and sold in India through legal channels. No one asked for my status/PIO/citizenship.
------------That is correct nobody asks you your passport or asks you your citizenship. In Registrar office you are Indian Citizen or US citizen you have to give bribe so that you get your documents early. These days registrar office needs PAN # from Buyer and anyone can get PAN by paying 65Ruppes in 10-15 days.
However, there is a law, that if you buy property and cannot sell it within I think 8 or 10 years, otherwise you are subject to some heavy tax.
----------- I have not read that law that says one need to sell in 8-10 years.
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---
Hi ginnu,
The following statement from RBI website states that one has to wait for 10 years if repatriation of sales proceedings are needed.
-----
Q.32 Can NRI / PIO repatriate the sale proceeds of residential / commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE / FCNR (B) account ? If so, what is the quantum ?


A.32 NRI / PIO may repatriate the sale proceeds of residential / commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE /FCNR (B) account. The amount to be repatriated should not exceed the amount paid for acquisition of residential / commercial property (a) in foreign exchange received through normal banking channel or by debit to FCNR (B) account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid by debit to NRE account.


From out of balances in NRO A/c. he may remit upto USD one million per calendar year, eligible balances including the sale proceeds of immovable property if such property has been sold after being held for 10 years. If such a property was held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO A/c. (Savings / Term Deposit) or any other eligible investment, provided, such investment is traced to the sale proceeds of the immovable property. (For details please refer Reg.4(3) of FEMA 13 dated May 3, 2000 as amended)
 
tagoregc said:
---
Hi ginnu,
The following statement from RBI website states that one has to wait for 10 years if repatriation of sales proceedings are needed.
-----
Q.32 Can NRI / PIO repatriate the sale proceeds of residential / commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE / FCNR (B) account ? If so, what is the quantum ?


A.32 NRI / PIO may repatriate the sale proceeds of residential / commercial property in India acquired by way of inward remittance through normal banking channel or by debit to NRE /FCNR (B) account. The amount to be repatriated should not exceed the amount paid for acquisition of residential / commercial property (a) in foreign exchange received through normal banking channel or by debit to FCNR (B) account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid by debit to NRE account.


From out of balances in NRO A/c. he may remit upto USD one million per calendar year, eligible balances including the sale proceeds of immovable property if such property has been sold after being held for 10 years. If such a property was held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO A/c. (Savings / Term Deposit) or any other eligible investment, provided, such investment is traced to the sale proceeds of the immovable property. (For details please refer Reg.4(3) of FEMA 13 dated May 3, 2000 as amended)
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One of my friends sold a flat recently in Mumbai. He bought the flat 4 years back and paid through NRE account check, he paid around 35 lacks + Stamp duty+ registration charges and brokerage. He sold that flat 3 months back for 45 lacks. He had the bank letter with check numbers that were paid from his NRE account to buy that flat. He was allowed to deposit 35 lacks in NRE account (that he can get any time converted to US$ at prevailing rate and can bring it to US) extra money he took was 10Lack he got 5 in black and other 5 by check and that 5 was deposited in NRO account. That is legal deal and no problems. May the RBI site info is wrong. His CA in India handled his work. ( person is in US from 1998 and GC holder)
 
No, the RBI site is not wrong.

He bought it from an NRE account. However, if you pay cash/under the table, etc. etc. where the exact amount is also not know, and sell it less than 10 years, then you will get partial cheque and mostly cash. Both - cash and cheque will only get deposited into your NRO account, and not NRE.
 
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