dreamworld

Dear NRI Investor,

You're on the right website if you're searching to invest in real estate in India. Welcome to DreamWorld Properties, one of Gurgaon's top real estate consultants. Here, we offer the greatest advice to our investors and assist them in selecting the ideal property for investment. Residential, commercial, and industrial buildings are all areas in which we have experience. We choose the goods and present the best properties while keeping an eye on long-term profitability.

This section of our website was specifically designed for you to provide answers to any questions you might have about investing in real estate in India. Please complete the form below, and we will provide the best guidance.

Sincerely,

Priyender Singh (PK)
CEO, Founder of Dreamworld Properties Pvt Ltd

NRI's RBI Guidelines

Reserve Bank of India (RBI) Guidelines for Non-Resident Indians (NRIs) and Persons of Indian Origin Investing in Real Estate (PIOs).

NOTE: The data below has been obtained from the RBI's FAQs page, which was most recently updated on April 1, 2016. We will occasionally update this section with pertinent information, but you may also visit rbi.org to make sure you have the most recent information.

According to the Foreign Exchange Management Act (FEMA), 1999, a person who resides outside of India is one who does not live there.

What kinds of accounts may an NRI/PIO2 maintain in India?

Without the RBI's approval, an NRI or PIO may open, hold, and maintain the various types of accounts listed below with an Authorised Dealer in India, or a bank that is permitted to trade in foreign exchange. In India, NRO Savings Accounts can also be kept with the Post Offices. However, persons and organisations from Bangladesh and Pakistan need the Reserve Bank's prior authorisation.

In India, an NRI or PIO may maintain the following types of accounts:

A. Non-Resident Ordinary Rupee Account (NRO Account)

Any person residing outside of India is permitted to create an NRO Account with a licenced dealer or a licenced bank in order to carry out legitimate rupee transactions. Account opening by Pakistani individuals, Pakistani organisations, and Bangladeshi organisations must first receive RBI approval. Post Offices in India are permitted to keep savings bank accounts in the names of people who reside outside of India and permit transactions on these accounts under the same terms and conditions as apply to NRO accounts maintained with an authorised dealer/authorised bank.
Two or more non-resident Indians or people of Indian origin may hold joint ownership of the accounts. Possibility of joint ownership with residents on a "former or survivor" basis.
The currency for the account should be Indian rupees.
It is possible to open and/or manage NRO Accounts as current, savings, recurring, or fixed deposit accounts.
The fixed deposit period will be the same as it is for resident accounts.
Inward remittances from outside India, legally required payments made in India, and transfers from other NRO accounts are all acceptable ways to credit an NRO account. Within the restrictions outlined by the Liberalized Remittance Scheme, rupee gifts or loans made by residents to NRI/PIO relatives may be credited to the latter's NRO account.
The account may be debited for local payments, transfers to other NRO accounts, or the transmission of current income overseas. These are all considered permissible debits. Aside from this, balances in the NRO account may only be remitted abroad by NRIs and PIOs up to USD $1 million, according to the requirements laid down in the 2016 Foreign Exchange Management (Remittance of Assets) Regulations. Within this USD $1,000,000 facility, money can be moved to an NRE account.
Other than current income, the USD 1 million annual cap that applies to NRIs and PIOs is transferable up to USD 1 (one) million per fiscal year (April-March), along with their other eligible assets. Unless you include all current revenue, this is not returnable.
The Account Holder is subject to taxation.
In India, the account holder or a third party may be granted a loan against a deposit subject to customary regulations and a margin requirement. The loan amount cannot be utilised for real estate investment, refinancing, or conducting agricultural or plantation operations. All forms of fund-based and non-fund-based facilities are included in the definition of "loan."
Outside of India, loans are not allowed.
The Rate of Interest will follow the rules set forth by the Regulatory Department for Banking.
The account's operations under the Power of Attorney are limited to withdrawals for legal domestic payments in rupees, sending current income to the account holder outside of India, or sending money to the account holder directly through standard banking channels. Remittances are subject to the restrictions and requirements of repatriability.
Upon the account holder's return to India for any reason, signalling his desire to remain in India for an undetermined amount of time, the account's status may be changed from non-resident to resident, designating the account as a resident account. In the same way, a resident Indian should have his current resident account converted to an NRO account when he moves outside of India.

B. Non-Resident (External) Rupee Account (NRE Account)

Individuals, organisations, and entities from Pakistan and Bangladesh need the RBI's prior clearance before opening an account.
An account called a "Joint Account" may be held jointly in the names of two or more NRIs or PIOs. NRIs/PIOs can hold jointly with a local relative on \s ‘former or survivor’ basis (relative as defined in Companies Act, \s 2013). During the lifetime of the NRI/PIO account holder, the resident relative may manage the account in the capacity of Power of Attorney holder.
The currency for the account should be Indian rupees.
NRE accounts can take the form of savings, checking, money market, recurrent, or fixed deposit accounts.
The duration of fixed deposits ranges from one to three years, but banks are permitted to take NRE deposits longer than three years from an asset-liability perspective.
Transfers from other NRE accounts, inward remittances from outside India, interest on the account, interest on investments, and maturity proceeds of investments (whether the investments were made from this account or through inward remittance) are all authorised credits to this account. Rent, dividends, pension payments, interest, and other current income will be considered as authorised credits to the NRE account. Only those credits with intact repatriable character should be used.
Local expenditures, remittances sent outside of India, transfers to other NRE accounts, and investments made in India are all acceptable debits.
The NRE account balances are readily transferable.
Amounts held in NRE accounts and accrued interest income are excluded from income tax and wealth tax, respectively.
Authorized Dealers may grant loans to the account holder or third parties in India without restriction, subject to the customary margin restrictions. These loans can only be used in India for the objectives listed in the regulations, and they cannot be repatriated outside of India. The non-resident depositor should not receive any direct or indirect foreign exchange benefits for consenting to pledge his deposits in the case of loans granted to a third party in order to help a resident person, firm, or business secure such facilities. In the event that a loan has been approved for the account holder, it may be returned by changing the deposits, receiving money transfers through banking channels from outside of India, or using funds in the account holder's NRO account. Where loans are taken out against such deposits, the option for premature withdrawal of deposits would not be available. All forms of fund-based and non-fund-based facilities are included in the definition of "loan."
Authorized Dealers may, subject to the usual margin requirements, permit their branches/correspondents outside of India to grant loans to or in favour of non-resident depositors or to third parties upon the request of the depositor for a bona fide purpose against the security of funds held in the NREaccounts in India. All forms of fund-based and non-fund-based facilities are included in the definition of "loan."
The Interest Rate will be in accordance with the Department of Banking Regulations' regulations.
According to the Power of Attorney, the account's activities are limited to withdrawals for legal local payments or remittances to the account holder directly through standard banking channels.
At the account holder's discretion, NRE accounts should be classified as resident accounts or the monies in these accounts may be moved instantly to RFC accounts upon the account holder's return to India for the purpose of accepting work or upon a change in residence status.

C. Foreign Currency Non Resident (Bank) Account – FCNR (B) Account

Account opening by Pakistani individuals, Pakistani organisations, and Bangladeshi organisations must first receive RBI approval.
An account called a "Joint Account" may be held jointly in the names of two or more NRIs or PIOs. NRIs and PIOs are permitted to hold jointly on a "former or survivor" basis with a local relative (as specified by the Companies Act of 2013). During the lifetime of the NRI/PIO account holder, the resident relative may manage the account in the capacity of Power of Attorney holder.
Any authorised currency, such as a foreign currency that is readily convertible, may be used for the account.
Accounts for FCNR (B) should only be in term deposits.
A fixed deposit must be made for a term of at least one year and no more than five years.
Transfers from other FCNR(B) accounts, inward remittances from outside India, interest on the account, interest on investments, and maturity proceeds of investments (whether the investments were made from this account or through inward remittance) are all authorised credits to this account. Only those credits that have retained repatriable character should be used.
Local payments, remittances made outside of India, transfers to other FCNR (B) accounts, and investments made in India are all acceptable debits.
The NRE account balances are readily transferable.
Balances kept in FCNR (B) accounts as well as accrued interest income are free from both income tax and wealth tax.
Authorized Dealers may grant loans to the account holder or third parties in India without restriction, subject to the customary margin restrictions. These loans can only be used in India for the objectives listed in the regulations, and they cannot be repatriated outside of India. The non-resident depositor should not receive any direct or indirect foreign exchange benefits for consenting to pledge his deposits in the case of loans granted to a third party in order to help a resident person, firm, or business secure such facilities. If a loan was approved for the account holder, it may be paid back by modifying the deposits, receiving money transfers through banking channels from outside India, or using funds in the account holder's NRO account. Where loans are taken out against such deposits, the option for premature withdrawal of deposits would not be available. All forms of fund-based and non-fund-based facilities are included in the definition of "loan."
Subject to the usual margin requirements, Authorized Dealers may permit their branches/correspondents outside of India to lend money to non-resident depositors or to third parties at the request of non-resident depositors for legitimate purposes in exchange for the security of funds held in the FCNR (B) accounts in India. All forms of fund-based and non-fund-based facilities are included in the definition of "loan."
The Interest Rate will be in accordance with the Department of Banking Regulations' regulations.
According to the Power of Attorney, the account's activities are limited to withdrawals for legal local payments or remittances to the account holder directly through standard banking channels.
If the account holder so desires, FCNR (B) deposits may be permitted to continue until maturity at the agreed-upon rate of interest upon a change in residential status. At the account holder's request, authorised dealers must convert FCNR(B) deposits upon maturity into resident rupee deposit accounts or RFC accounts (if the depositor is entitled to open RFC accounts).