NRIs exempted from reporting property deals in India
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RBI today clarified that NRIs and PIOs are not required to report to the central bank the details of transactions while purchasing immovable property in India, an announcement which is likely to encourage Indian diaspora to invest in the country.
"It is clarified that the extant regulations do not prescribe any reporting requirements for transactions where a person resident outside India who is a citizen of India or a PIO... acquire/s immovable property in India," the Reserve Bank said.
The clarification follows confusion over whether Non- Resident Indians (NRIs) and Persons of Indian Origin (PIOs), like foreigners, too have to file a declaration with the Reserve Bank within 90 days from the date of acquisition of properties.
Foreigners make the declaration in IPI form. "Form IPI has been, accordingly, amended for greater clarity," RBI said.