Can NRIs/PIOs rent out the properties (residential/commercial) if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation. It is important to have an understanding of the various rules and regulations when renting out your property in India, and we aim to highlight some basic do’s and dont’s. If you are renting your property: To begin with, you should check credibility of the proposed tenant by asking him to furnish references from previous landlords. If you are an unit holder in the premises, seek veto right to protect own interests as against decisions by developer/majority unit holders who may be directly dealing with the tenant. As a person renting out his property, it is desirable for you to have the agreement with a strong seek lock-in period. Within this period, the tenant will not have the right to terminate the lease. If he does so, then he will be legally obliged to pay lease rent for such period. As the owne
Yes. NRI/PIOs can freely rent out their immovable property, whether purchase through application of forex or otherwise, without seeking any permission from the RBI. The rental income being a current account transaction is repatriable outside India, only if proper tax is paid or provided for. Top LOAN RELATED 1. Does RBI have any guidelines for loans to NRI’s/PIO’s? Yes. There are guidelines issued by the by the Reserve Bank of India for grant of Housing Loans to NRIs. The guidelines are: a. The loan amount shall not exceed 85% of the cost of the dwelling unit. b. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. c. Repayment of the loan, comprising of the principal and interest including all the charges are to be rem
Related Questions
- Can the properties (residential / commercial) owned by NRIs be given on rent if not required for immediate use?
- Can NRIs/PIOs rent out the properties (residential/ commercial) if not required for immediate use?
- Can NRIs/PIOs rent out the properties (residential/commercial) if not required for immediate use?
