With the property market in India witnessing a rapid growth over the last decade, there is tremendous amount of interest for purchasing property in India from persons residing outside of India. In this article we look at the relevant rules and regulations surrounding the acquisition and transfer of immovable property in India by Non-Resident Indians [NRIs], Foreign Nationals and Foreign Nationals of Indian Origin.
Under FEMA Act, 1999, a person resident in India is defined as a person residing in India for more than one hundred and eighty two days during the course of the preceding financial year and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. Therefore, any person who does not satisfy the above condition is considered to be a Non Resident Indian. In simpler terms a person has to satisfy both the conditions of 182 days stay in India and also comply with the purpose/intention of stay to be a resident of India.
NRI for this purpose is defined as a person resident outside India who is citizen of India. In terms of Regulation 2 FEMA Notification No. 13 dated May 3, 2000, Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India.