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NRI

NRI Club

Every NRI desires to have some roots back home. And Origin deeply understands this connection with their motherland. Origin recognises the challenges that NRI’s face when it comes to research and finding real estate premises from overseas. Origin covers the whole spectrum of buying/leasing/selling for residential and commercial properties, proficiently.

Now NRI buyers can be ensured that their investment would be safe, as RERA has brought in a new era of transparency in the real estate sector. Origin’s every project is RERA registered and are at par with international standards that attracts a lot of customers, investors and associates. We believe in quality over quantity and strive hard to make the process smooth and effortless in every aspect for NRI’s.

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FAQ for NRI

Who is a Non- Resident Indian (NRI) and person of Indian Origin (PIO)

An Indian Citizen who stays abroad for employment/carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U. N. Organizations and officials deputed abroad by Central/state Government and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizen of Indian Origin are treated on par with non-residential Indian Citizen (NRIs) for the purpose of certain facilities.

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is deemed to be of the Indian Origin if he held and Indian Passport at any time, or he or his father or parental grand-father was a citizen of India by virtue of the (Constitution of India or the Citizenship Act, 1955(57 of 1955).

Can such property be sold without permission of Reserve Bank?

Yes, Reserve Bank has granted general permission for sale of such property. However, whether 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 balance in NRE / FCNR accounts.

Can a foreign citizen of Indian origin acquire or dispose of such property by way of gift to relatives /registered charitable trust/organisations in India or abroad?

Yes. Reserve Bank has granted general permission to a foreign citizen of Indian Origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian Citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

Can the properties be given on rent 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 are eligible for repatriation.

What is the Tax treatment for income generated from property selling or renting for NRI/PIO/OCI?

The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.

Does Capital Gains Tax (CGT) apply to NRI / PIO / OCI?

Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.

How does Double Taxation Avoidance Agreement work in case of NRIs?
In case of sale of an immovable property, the Double Tax Avoidance Agreement (DTAA) with most countries state that capital gains will be taxed in the country where the immovable property is situated. Hence, if an NRI owns immovable property in India, then he/she will be subject to pay tax in India on the capital gains which arise on the sale of the property. Similarly, letting of immovable property in India would be taxed in India under most tax treaties.
Is there any restriction on the number of properties NRIs can buy in India?

There is no restriction on the number of residential or commercial properties an NRI can own in India. However, the law restricts NRIs from purchasing any kind of agricultural land/ plantation property/ farm house in India.

1. What makes Mumbai the best investment option:
  • Mumbai is experiencing a surge in infrastructure development, with numerous projects such as monorail, metro lines, sea-links, and new roadways being constructed. These projects aim to enhance connectivity and position Mumbai on par with other global cities.
  • High Rental Yield: Due to the constant influx of professionals and students, Mumbai offers attractive rental yields and are particularly known for high rental returns. The continuous influx of companies establishing their presence in Mumbai and the steady stream of people migrating to the city fuel a constant demand for real estate.
  • Appreciation Potential: Historically, Mumbai’s real estate market has shown strong appreciation in property values. The limited availability of land coupled with high demand drives property prices upwards.
  • As the country’s financial epicenter, Mumbai thrives on commerce, benefiting from cutting-edge technology, consistent electricity supply, skilled workforce, and excellent connectivity.
  • Cultural and Social Hub: The city’s vibrant culture, entertainment industry, and educational institutions make it a desirable place to live, attracting a diverse population and enhancing the real estate market.
  • Diverse Investment Options: Mumbai offers a variety of investment opportunities ranging from luxury apartments and commercial spaces to affordable housing and redevelopment projects, catering to different investor profiles. Investing in Mumbai’s real estate market promises substantial financial returns and provides a sense of emotional security with a tangible asset in the homeland.
  • Government Policies: Favorable government policies and incentives for affordable housing, along with RERA (Real Estate Regulatory Authority) implementation, have increased transparency and investor confidence.
  • Stable Market: Despite economic fluctuations, Mumbai’s real estate market has remained relatively stable, making it a safer investment compared to other regions. The mandatory MAHARERA registration for all projects ensures investors of quality assurance and timely project completion.
2. Why Western area of Mumbai good for investment?
  • Excellent Connectivity: The Western suburbs are well-connected through the Western Express Highway, the Mumbai Suburban Railway, and the Mumbai Metro. The upcoming Coastal Road Project and the Metro Line expansions are set to further enhance connectivity, making travel more efficient.
  • Proximity to Business Hubs: Areas like Bandra-Kurla Complex (BKC), Andheri, and Goregaon house many corporate offices, making them prime locations for professionals. The presence of several IT parks and commercial centers increases demand for residential and commercial properties.
  • Quality Infrastructure: The Western suburbs boast advanced infrastructure, including top-tier schools, hospitals, shopping malls, and entertainment options. The ongoing infrastructure projects, such as new flyovers and roadways, aim to reduce congestion and improve living standards.
  • Lifestyle and Amenities: The Western suburbs offer a high quality of life with numerous recreational facilities, parks, and beaches (e.g., Juhu Beach, Versova Beach), Shopping hotspots, and world-class educational facilities, Commercial Hub The vibrant social scene, with a variety of restaurants, cafes, and cultural centers, attracts both locals and expatriates. the western suburban region is a uniquely-positioned hub which extends convenience to the working professionals
  • Diverse Investment Options: Mumbai offers a variety of investment opportunities ranging from luxury apartments and commercial spaces to affordable housing and redevelopment projects, catering to different investor profiles. Investing in Mumbai’s real estate market promises substantial financial returns and provides a sense of emotional security with a tangible asset in the homeland.
  • Property Appreciation: Historical data shows a steady appreciation in property values in the Western suburbs, driven by demand and infrastructural development. The scarcity of land and high demand contribute to the sustained increase in property prices.
  • Stable Market: Despite economic fluctuations, Mumbai’s real estate market has remained relatively stable, making it a safer investment compared to other regions. The mandatory MAHARERA registration for all projects ensures investors of quality assurance and timely project completion.
3. Who is a Non- Resident Indian (NRI) and person of Indian Origin (PIO)

An Indian Citizen who stays abroad for employment/carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U. N. Organizations and officials deputed abroad by Central/state Government and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizen of Indian Origin are treated on par with non-residential Indian Citizen (NRIs) for the purpose of certain facilities.

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is deemed to be of the Indian Origin if he held and Indian Passport at any time, or he or his father or parental grand-father was a citizen of India by virtue of the (Constitution of India or the Citizenship Act, 1955(57 of 1955).

4. Can such property be sold without permission of Reserve Bank?

Yes, Reserve Bank has granted general permission for sale of such property. However, whether 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 balance in NRE / FCNR accounts.

5. Can a foreign citizen of Indian origin acquire or dispose of such property by way of gift to relatives /registered charitable trust/organisations in India or abroad?

Yes. Reserve Bank has granted general permission to a foreign citizen of Indian Origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian Citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

6. Can the properties be given on rent 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 are eligible for repatriation.

7. What is the Tax treatment for income generated from property selling or renting for NRI/PIO/OCI?

The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.

8. Does Capital Gains Tax (CGT) apply to NRI / PIO / OCI?

Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.

9. How does Double Taxation Avoidance Agreement work in case of NRIs?
In case of sale of an immovable property, the Double Tax Avoidance Agreement (DTAA) with most countries state that capital gains will be taxed in the country where the immovable property is situated. Hence, if an NRI owns immovable property in India, then he/she will be subject to pay tax in India on the capital gains which arise on the sale of the property. Similarly, letting of immovable property in India would be taxed in India under most tax treaties.
10. Is there any restriction on the number of properties NRIs can buy in India?

There is no restriction on the number of residential or commercial properties an NRI can own in India. However, the law restricts NRIs from purchasing any kind of agricultural land/ plantation property/ farm house in India.

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