Non Resident Indian or Person of Indian origin can acquire or transfer immovable property in India other than agricultural land/plantation property or a farm house out of repatriable or non-repatriable funds.

Foreign national of non Indian origin resident outside India shall not acquire/transfer any immovable property in India other than on lease not exceeding five years, without prior approval of Reserve Bank of India.

The payment of purchase price, if any, should be made out of

(i) Funds received in India through normal banking channels by way of inward remittance from any place outside India or
(ii) Funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank.

However, no payment should be made by traveller's cheque or by foreign currency notes or by other mode other than those specifically mentioned above.

● NRI can buy any immovable property in India other than agricultural land or farm house plantation property, by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India.

● NRI can buy any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law.

● An NRI can transfer any immovable property in India to a person resident in India.

● NRI can transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India.

In respect of such investments, NRIs are eligible to repatriate:

● The sale proceeds of immovable property in India if the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels by debit to NRE or FCNR (B) account.

● 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 NRE account or debit to FCNR (B) account.

● In the event of sale of immovable property, other than agricultural land, farm house or plantation property in India, by a person resident outside India who is a citizen of India / PIO, the repatriation of sale proceeds is restricted to not more than two residential properties subject to certain conditions.

● If the property was acquired out of Rupee sources, NRI or PIO 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.

Source:IncomeTax
GoodReturns.in