The Reserve Bank of India has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain the permission of the Reserve Bank of India.

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.

They are required to file a declaration in form IPI 7 with the Central Office of the Reserve Bank of India at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

In respect of residential properties purchased on or after 26th May 1993, the Reserve Bank of India considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

The Reserve Bank of India has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

The basic procedure for taking a loan for a home starts with you filling the application form which is the most basic document that starts your home loan process wherein you provide your details like your name, address, occupation and income. Additional documents required for your home loan may include details about the property you wish to purchase, estimated cost, and the down payment you can pay. These documents need to be verified before your loan application form can further. Home loans being a long-term borrowing instrument, their tenure can range from anywhere between 5 years to 30 years. Banks look into your credit history, essentially they assess your credit score before they grant you the loan. They assess your income in comparison to the cost of the house and determine if you will be able to pay off the house.

Pre-qualified is usually the first step- it tells how large of a loan you can qualify for, and pre-approved is the second step where they conditionally grant you the loan for the house.

The extra costs in applying for a home loan may include application charges, administrative charges, legal fees, franking fees, notary fees, indemnity costs, CERSAI charges, and documentation fees.

Yes, NRIs can legally buy both residential and commercial properties in India, including Mumbai. However, they cannot buy agricultural land, plantation property, or farmhouses.

NRIs are subject to TDS, capital gains tax, and property tax. Long-term capital gains are taxed at 20% with indexation benefits.

Yes, NRIs can repatriate rental income after paying applicable taxes, through their NRO account.