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Virtual Legal Assistant (.)     25 May 2021

Overseas citizen of india

Does an Overseas Citizen of India cardholder require permission accorded by the Reserve Bank of India as per Section 31 of FERA, 1973 for the sale of the property in India? 



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 9 Replies

Sankaranarayanan (Advocate)     25 May 2021

your query seems academic. state the facts clearly

Virtual Legal Assistant (.)     25 May 2021

My question is whether the mandate of Section 31 of FERA still exists when FERA is already repealed by FEMA? 

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     26 May 2021

FERA has long back been replaced by FEMA.

 

OCI card holder is eligible for all facilities that a NRI is eligible. You can sell your property in India and it does not require permission. The sale proceeds so received need to be credited to your NRO account opened in any bank in India. For opening NRO account, you need to have PAN card.

 

Once the sale proceeds are credited to your NRO account, a sum of INR equivalent to USD 1.00 million can be repatriated to the country of your present stay, subject to condition that you  submit form 15A and Form 15B  which are a confirmation of payment of related taxes like capital gains tax.

 

From NRO account the maximum amount that can be repatriated is USD 1.00 Million per year (1st April to 31stMarch).

2 Like

Virtual Legal Assistant (.)     26 May 2021

Thank you for the information. 

G.L.N. Prasad (Retired employee.)     26 May 2021

But always utilize the professional services of a Chartered Accountant on a turnkey basis, who is experienced in dealing with these type of transactions, as it is very difficult to deal in such transactions with half knowledge persons in the country. Only if the fees are abnormal, use services of educated relative at your place in India.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     26 May 2021

In my reply I mentioned forms as 15A and 15B, which are in fact forms 15CA and 15CB. The error is regretted.

Yes it's better a Chartered Accountant us engaged. In fact form 15CB is to be issued by a Chartered Accountant only, while 15CA is issued by the Buyer confirming deduction of TDS from the sale proceeds and remitting to Income Tax Department.

sneha jaiswal   26 May 2021

Hello, Greetings of the day!

For the query you posted, I would suggest that:

The person who is not a citizen of India requires “previous” general or special permission of the Reserve Bank of India for the transfer or disposal of immovable property by sale or mortgage in India. If permission is not taken then the transfer will not be given effect and the concerned person in accordance with that requirement may be punishable under Section 50 or with other consequences mentioned in FERA, 1973 Act. For better guidance, I will suggest you consult a prudent lawyer. Hope it helps

Regards,

Sneha Jaiswal

Law Student

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     26 May 2021

FERA has been replaced by FEMA and FERA is no longer in vogue. Therefore, the clarification given above by me regarding Overseas Citizen of India (OCI) earlier known as Person of Indian Origin (PIO) stands.

T. Kalaiselvan, Advocate (Advocate)     26 May 2021

As per the latest, updated on 11th April 2018, an NRI or an OCI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India.

Similarly the above Regulation also permits NRO/OCI to transfer or sell the immovable property without prior permission from RBI, to a person resident in India, NRO or OCI. They can repatriate the funds up to USD 1 million per year; provided in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.


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