The term PIO is defined as:
‘a Person of Indian Origin’ means an individual( not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who

at any time held an Indian Passport or

Yes, on return to India, NRI need not declare or surrender their foreign currency assets and the income earned thereon.

Rules for Indian citizens residing outside India for acquiring immovable property by way of:

Acquisition:

Purchase :

General permission is granted for purchasing any immovable property in India (other than agricultural land, plantation or farm house property.)

Gift :

General permission is granted to acquire any immovable property(other than agricultural land, plantation or farmhouse property) as a gift.

Inheritance :

General permission is granted for inheriting immovable property including agricultural land, plantation or farm house property from a person resident in India, or an Indian citizen resident outside India or a foreign citizen of Indian origin. The inheriting person should have acquired the said property in accordance with the provisions of Foreign Exchange Law in force at the time of acquisition. Agrcultural land; plantation or farmhouse property can be acquired by way of inheritance only.

Transfer/sell:

General permission is available for transfer of any immovable property (other than agricultural land, plantation property and farm house ) to:
Person resident in India
Person resident outside India, who is an Indian citizen; or
Person resident outside India, who is a foreign citizen of Indian origin. however, a person can sell, gift or transfer agricultural land , plantation or farm house properties to a citizen of India who is resident in India only.

Rules for foreign citizen of Indian origin for acquiring immovable property by way of :

Acquisition:

Purchase

There is general permission to acquire any immovable property(other than agricultural land, plantation or farm-house property) by way of purchase, provided the payment is made out of foreign exchange inward remittance or by debit to any Non Resident bank account in India. i.e. NR(E), FCNR(B) or NRO.

Gift:

General permission is granted to acquire any immovable property (other than agricultural land, plantation or farm house property) by way of gift from a person (donor) who is (i) resident in India, or (ii) resident outside India (an NRI) Indian citizen or a foreign citizen of Indian origin.

Inheritance:

General permission is granted for inheritance of immovable property including agricultural land, plantation or farm house property from a person resident in India, or a person resident outside India who may be an Indian citizen or foreign citizen of Indian origin. The inheriting person should have acquired the said property in accordance with the provisions of Foreign Exchange Law in force at the time of acquisition. Agricultural land, plantation or farm-house property can be acquired by way of inheritance only.

Transfer/Sell:

General permission is available for transfer of any immovable property (other than agricultural land, plantation property or farm house) to a person resident in India only. However, a person of Indian origin is permitted to make a gift of such property to person resident in India or to an Indian citizen residing outside India, or to a person of Indian origin resident outside India. Agricultural land, farm house, and plantation property can be transferred as a gift or sold only to an Indian resident or a person residing in India.
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China. Iran, Nepal and Bhutan can not acquire or transfer immovable property in India, other than on lease, not exceeding five years, without prior permission from Reserve Bank of India.

An NRI can acquire immovable property by inheritance with the specific approval of the Reserve Bank of India. The property must be acquired with the provisions of Foreign Exchange laws in force at the time of acquisition or under FEMA regulations.

Yes

The property should be acquired using funds remitted to India through normal Banking Channel or funds held in NRE/FCNR/NRO accounts. Such payments can not be made using traveler’s cheque or by foreign currency notes.

An NRI can sell his property to resident Indian, another NRI or a PIO. A PIO can however sell his property only to a resident Indian.

He would need to take prior approval from the Reserve Bank of India

Yes, provided the amount repatriated is less than the amount paid for acquiring the property in the first place. The amount paid for acquisition must be received in foreign exchange through normal banking channels. In addition, this amount must be the foreign currency equivalent as on date of payment by debit to the NRI account. The facility to remit the sale proceeds of immovable property is not available to citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan.

Ensure that the documents being provided to you are not colour photocopies. Check the internet for other modus operandi to fraud and ensure clear title to the asset. Seek advice only from authentic sources such as your bank.

Get the no encumbrance certificate to find the true title holder and if it is mortgaged to any financier. Obtain all tax papers to ensure that all documents are up to date.

The facility to remit the sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan. The following conditions apply for repatriation of the sale proceeds of immovable property.

Immovable property acquired through foreign exchange:

Acquisition should be in accordance with the existing Foreign Exchange Laws.

The purchase price is met out of Foreign Exchange Inward Remittance or NRE/FCNR (B) account.

Repatriation is restricted to a maximum of two properties in the case of residential properties. Such restrictions do not apply to commercial or industrial properties.

The amount of repatriation is restricted to the foreign exchange equivalent of the purchase price.

Immovable property acquired through local funds: NRIs/PIOs are allowed to repatriate funds held in their NRO accounts up to US $ 1 million per financial year. The limit includes sale proceeds of immovable property also.

Immovable property acquired through inheritance/settlement and legacy: If a property is acquired by way of inheritance/settlement or legacy, there is no lock-in-period with respect to the holding period for the property. The sales proceeds will be credited to the NRO account and thereafter in view of the permitted remittance up to US $ 1 million per financial year, the sale proceeds can be repatriated. However, note that remittance of assets acquired through “settlement” is available only on the demise of the settler.

Immovable property acquired by raising a loan in India: NRI/PIO acquires immovable property through a loan obtained from authorized dealers or housing finance institutions in India approved by National Housing Bank. The loan is raised for the purchase of residential accommodation and is subsequently repaid by remitting funds from abroad or debiting NRE/FCNR accounts. Then the authorized dealers can allow repatriation of the sale proceeds of the residential accommodation to the extent of such loan’s repaid by them out of foreign inward remittance received through normal banking channels or by debiting RE/FCNR accounts.

Yes. Repatriation is restricted to sale proceed of not more than two residential properties.

No. Prior approval from RBI is necessary with documentary evidence in support of inheritance and tax clearance/no objection from Income Tax authority.

Sale proceeds of residential property can be credited to an NRO account only.

Yes. It can be credited to NRE/NRO account or remitted abroad.

Yes, on return to India, NRI need not surrender their foreign currency assets and the income earned thereon.

A foreign national of non-Indian origin who has retired from an employment in India or has inherited assets from a person resident in India or who is a widow of an Indian citizen who was a resident in India, may remit an amount not exceeding USD one million, per financial year, on production of documentary evidence in support of acquisition/inheritance of assets, an undertaking by the remitter and certificate by Chartered Accountant in the formats prescribed by Central Board of Direct Taxes.

A Non-Resident Indian(NRI) or a Person of Indian Origin(PIO) may remit an amount up to USD one million, per financial year, out of the balance held in his Non-Resident (ordinary) Rupee (NRO) account, or out of the sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes . The remittance facility in respect of sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, Nepal and Bhutan.

Remittance of current income

A NRI/PIO can freely remit current income like rent, dividend, pension, interest etc; even if they do not maintain an NRO account.

Facilities for students

As Non-Residents, they will be eligible to receive remittances from India based on the following conditions
Up to USD 100,000 from close relatives in India on self declaration towards maintenance, which could include remittances towards their studies also
Up to USD one million out of sale proceeds of assets or balance in their account maintained with an AD (Authorized Dealer) in India.

International Credit Cards:

NRIs/PIOs can use International Credit Cards abroad and settle bills out of balances held in the cardholder’s FCNR/NRE/Non-Resident (Ordinary) rupee accounts.

The following incomes are deemed to arise in India:

Salaries earned in India for services rendered in India.
Salaries payable by the Government of India to an Indian
citizen for service outside India.
Dividend paid by an Indian company outside India.
Interest
Royalty
Fees for technical services.

Government securities or units of Unit Trust of India.
National Savings Certificate issued by post offices in India
Non-convertible debentures of Indian companies.
Bank accounts in India.
Investments in securities or shares and deposits of Indian firms or companies
Investment in immovable property in India.
Investment in Mutual Funds in India.
Company deposits.

Bank Deposits, investment in shares, units of Mutual Funds etc, are exempt from wealth tax in India.

Interest earned on NRE and FCNR accounts is completely tax-free.
Gift tax has been abolished for all types of gifts from the 1st October 1998.
However, gifts received on the occasion of marriage or from relative or under will or inheritance would not be subject to tax.

As per current guidelines, funds in NRE Savings Account are exempted form Income tax in India.

The interests earned on any type of NRO deposit are taxed under the account holder’s tax bracket. On the other hand, interest earned on the NRE account is totally exempted from income tax, and the credit balances in the account don’t attract any wealth tax. Any gift given to a close relative doesn’t attract gift tax.

The interests earned on any type of NRO deposit are taxed under the account holder’s tax bracket. On the other hand, interest earned on the NRE account is totally exempted from income tax, and the credit balances in the account don’t attract any wealth tax. Any gift given to a close relative doesn’t attract gift tax.

Non-Resident Indians qualifying for NRI housing loans :

Indian citizens who stay abroad for employment of for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad;
Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources

Government servants deputed abroad on assignments with foreign Government or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organization(WHO), Economic and Social Commission for Asia and the Paacific(ESCAP)
Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.

List of Documents for availing a home loan by an NRE?

Completed Home Loan Application Form
2 passport size photographs
Proof of Identity – Copy of first four pages of passport and page with visa stamp, or IC/PIO card.
Valid work permit
Copy of the employment contract. An English translation of the contract duly attested by employer/consulate/.foreign branches/offices of the concerned Bank or Embassy in case the contract is available in any other language.
Last salary certificate/slip in original.
Copy of salary certificate duly attested by Indian Embassy/Consulate/Bank Branch/
Brief profile of applicant and work establishment.
Details of previous employment
Bank account statement/passbook for the last six months.
Account statement/passbook of overseas bank showing salary and savings.
Proof of residence(driving license/utility bills)
Copy of Continuous Discharge Certificate (CDC) – for applicants employted in the merchant navy.
Sale Deed/ Agreement for Sale.
Copy of approved building plans/approvals in respect of proposed construction/purchase/extension.
Original NOC under the Provision of ULC Act (Urban Land Ceiling Act)
For purchase/construction of house- Original title deed, non-encumbrance certificate for 30 years, possession certificate and land tax receipt
For purchase of flat – construction agreement, allotment letter, copy of approved plan, estimates-payment schedule, undertaking from the builder in the format specified by the Bank
Copy of the Order permitting Land Conversion in case of conversion of agricultural land.
Copy of the land tax receipt/building tax receipt.
Copy of the Allotment letter of Housing Board/Builder/Co-op Society.
Detailed Cost Estimate/Valuation Report from approved valuer in case of outright purchase of an existing house/flat.
Notarized Power of Attorney, if applicant proposes to authorize a third party to execute the documents/complete the mortgage formalities/avail the loan installments.
Any other documents as required by the Bank.

Interest

Interest rates are same as applicable for resident Indian borrowers for various tenures, available on fixed/floating/combination of fixed and floating rates

Repayment period

Varies from Bank to Bank. However generally – Applicants below
45 years: 20 years
Applicants above 45 years: 15 years
Note : Subject to liquidation of loan by the age of 60 years or the age of retirement whichever is earlier.

Mode of Repayment

Repayment in EMIs (Equated Monthly Installements)
Remittance from abroad through normal banking channels.
Funds transfer from NRE/FCNR/NRO accounts.
Remittance from local funds by close relatives.

Mode of RepaymentSecurity

Equitable mortgage by deposit of title deeds of the proposed property.
Registered mortgage when considered necessary
Additional security by way of lien over credit balances in deposit accounts, NSCs, Life Insurance Policies, third part guarantees, if security is either inadequate or not free from encumbrances .