Acquisition
or transfer of any immovable property outside India by a person resident in
India would require prior approval of RBI except in the following cases:
a)
Property
held outside India by a foreign citizen resident in India;
b) Property
acquired by a person on or before 8th July, 1947 and held with the
permission of RBI;
c)
Property
acquired by way of gift or inheritance from:
i.
persons
referred to in (b) above;
ii.
persons
referred to in section 6(4) of the Act;
d) Property
purchased out of funds held in Resident Foreign Currency (RFC) account;
e) Property
acquired jointly with a relative who is a person resident outside India
provided there is no outflow of funds from India;
f)
Property
acquired by way of inheritance or gift from a person resident in India who
acquired such property in accordance with the foreign exchange provisions in
force at the time of such acquisition
An Indian company having overseas
offices may acquire immovable property outside India for its business and
residential purposes provided total remittances do not exceed the following
limits prescribed for initial and recurring expenses, respectively:
a)
15
per cent of the average annual sales/ income or turnover of the Indian entity
during the last two financial years or up to 25 per cent of the net worth,
whichever is higher;
b) 10 per cent of
the average annual sales/ income or turnover during the last two financial
years.
For the purpose of these regulations,
'relative' means husband, wife, brother or sister or any of his/her lineal
ascendant or descendant.
The new regulations shall come into
force with effect from January 21, 2016.
Based on RBI Circular dt 04/02/16. Please visit www.rbi.org.in for any further clarification
if required….. Poppy
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