Introduction

Non Resident Indian (NRI)

The term NRI has not been defined in FEMA,
1999. However Regulation 2(vi) of the FEMA
(Acquisition & Transfer of Immovable
Property in India) Regulations 2000 defines
the same as follows:
An NRI is a person resident outside India who
is a citizen of India or is a Person of Indian
Origin
 Person of Indian Origin (PIO)
A PIO has been broadly defined as a citizen of any
country other than Bangladesh or Pakistan [certain
Regulations also include Sri Lanka, Afghanistan,
China, Iran, Nepal or Bhutan] if:
at anytime he has held an Indian passport; or
If he or either of his parents or grand parents was a
citizen of India by virtue of Constitution of India of
the Citizenship Act 1955; or
the person is a spouse of an Indian citizen or a person
referred to in sub-clause (a) or (b) above.
 Overseas Citizen of India (OCI)
An OCI is a foreign national, who was eligible to
become a citizen of India on 26.01.1950 or was a
citizen of India on or at any time after 26.01.1950 or
belonged to a territory that became part of India after
15.08.1947 and his/her children and grand children, is
eligible for registration as an Overseas Citizen of
India (OCI).
However, if the applicant had ever been a citizen of
Pakistan or Bangladesh he/she will not be eligible for
OCI
 Legal Counseling Issues
Opening of a Bank Account: Foreign nationals resident but
not permanently resident in India are permitted to maintain
and operate bank accounts in India only with authorised
dealers.
Acquisition, Management & Transfer of Immovable
Property: Section 6(5) of FEMA 1999, provides that a person
resident outside India can hold, own, transfer or invest in
Indian currency, security or any immovable property situated
in India if such currency, security or property was acquired,
held or owned by such person when he was a resident in India
or inherited from a person who was a resident in India.
 NRIS INVESTMENT
Investment by Non Resident Indians is allowed in all
categories.
Earlier, only the NRIs were permitted to invest in
Housing and Real Estate sectors, RBIs Circular
known as Press Note 2 of 2005 dated March 3, 2005
and Press Note 4 of 2006 dated February 10, 2006
have vastly widened the field and opened the
floodgates for FDI in townships, housing,
infrastructure and construction/ development
projects.
 Opportunities lining up for NRIs..
Direct FDI allowed in residential townships of more than 25
acres and in construction with approval for projects offering
built-up area of more than 50 thousand square meters.
Direct and automatic approval for IT park and hotel
investments.
Foreign and domestic venture capital investment in real estate
allowed with prior approval.
Within special economic zones, akin to Foreign trade zones in
the USA , developments, free capital and dividends allowed
with many specific tax exemptions on profits (5 to 10 years),
and local taxes.
 Accruing Income Tax Benefits
Section 80-IB (10) of the Income Tax Act, 1961 exempting the entire
income from specified housing projects from income tax invites FDI and
NRIs to rush to India.
Section 80-IB (10) exempts an industrial undertaking's entire income from
developing and building housing projects approved before the 31st day of
March, 2007 by a local authority if such undertaking completes such
construction within four years from the end of the financial year in which
the housing project is approved by the local authority; and the project is on
a plot of land admeasuring at least one acre.
Further, the conditions relating to the time limit for completion of the
project and minimum size of plot are also waived in respect of the housing
project carried out in accordance with the notified scheme framed by the
Central or State Government for reconstruction or redevelopment of
existing buildings in areas declared to be slum areas
 Why Invest in India?
Booming Indian economy - The GDP growth rate is around 8% and
increasingly showing signs of northwards trend with the stated intention
of 10% growth rate.
Booming IT sector -. Information Technology has changed the global
definition of India. India has emerged as one of the global software
leader. With the increase in spending power of Indians, the real estate
market is just waiting to explode.
Booming economic policies - The progress of the nation by leaps and
bounds is largely attributed to the ever improving, intelligent and
forward-looking economic policies adopted by the successive
governments during the past 15 years. The FDI regime is here to stay.
FDI has the potential to change the face of India if pursued in the right
earnest.
Cont..
Booming middle class - The Indian middle class is
estimated at more than 300 million more than the
entire population of US. Largely English-speaking
Indian middle class represent the future of Indian
service sector. All this augurs well for the overall
improvement in the standard of living in India.

Booming NRI investment - The millions of NRIs are

channeling more and more money towards the growth
of Indian infrastructure.