NRI Info
Who is a PIO?
A Person of Indian Origin (PIO) is a citizen of any other country but whose ancestors were Indian nationals at least four generations away.
What is a PIO card?
A PIO card is issued to PIOs other than Bangladeshi and Pakistani nationals with Indian origins, holding a foreign passport.
Who is eligible for a PIO card?
1. Anyone who ever held an Indian passport;
2. Anyone whose ancestors up to the last four generations were settled in India and did not migrate to Pakistan or Bangladesh
3. Whose spouse is a citizen of India or a person of Indian origin
When did the PIO card come into force?
15th September, 2002
What advantages does the PIO card carry?
a) Parity with NRIs, therefore eligible to
i) Acquire non-agricultural and plantation property in India,
ii) Admit children to all educational institutes in India under NRI quota
iii)Apply for various housing schemes of LIC, state governments and other government agencies
b) Enter India without a visa
c) Exemption from registration at Foreigners Registration office at District Headquarters if stay in India does not exceed 180 days
Who issues the PIO card?
1. All Indian Embassies, High Commissions and Indian Consulates abroad. An officer at the Indian Mission notified for the purpose carries the authority to issue a PIO card.
2. Foreigners Regional Registration offices in New Delhi, Mumbai, Kolkata and Chennai
3. Joint Secretary (Foreigners), Ministry of Home Affairs, New Delhi
Which documents are required to apply for the card?
a) All relevant documents which substantiate claim to Indian origin
b) In the case of children, a copy of the parent's passport if parent still an Indian citizen, or old passport or birth certificate
c) 4 passport size photographs, front view
Note: PIO card feepayable as per prevailing rate, by a cheque favouring Embassy of India/Consulate General of India (as applicable)
What is the validity of the card?
15 years from the date of issue of the PIO card.
Are there any restrictions for card holders?
a) They do not have any political rights.
b) Cannot undertake activities like mountaineering, missionary and research work and existing PAP/RAP which need a special permit.
Can PIO card holders apply for citizenship?
Yes, under the Citizenship Act, the applicant should have resided in India for a minimum of 7 years before the application is submitted.
Can the card be withdrawn?
Yes, if
1. the PIO card was obtained through fraud, concealment of facts or false representation
2. the activities of the card holder in India do not conform to the laws of the country and the Indian Constitution
3. the card holder happens to be citizen of a country with which India is at war, or is supporting another country in acts of aggression against India
4. the PIO has been found guilty of acts of terrorism, smuggling of arms and ammunition and narcotics
5. has been sentenced in India up to one year's imprisonment or fined up to Rs.10,000
6. the card holder's presence in India is detrimental to the interests of the country Explanation for withdrawal of the PIO card by the Government of India is not necessary.
formalities required to be completed by foreign citizen of Indian Origin for purchasing residential immovable property in India
Under the general permission, file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.
Is permission required from RBI to sell such property?
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.
Repatriation of sale proceeds
In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993 will have to be credited to the ordinary non-resident rupee account of the owner of the property.
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.
Applications for necessary permission for remittance of sale proceeds should be made inform IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed from the date of payment of final installment of consideration amount, whichever is later.
Can foreign citizen of Indian Origin acquire or dispose of residential property by way of gift?
Yes. Reserve Bank has granted general permission to 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 immovable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India?
Yes. General permission has been granted by Reserve Bank to non-resident persons(foreign citizen) of Indian Origin to transfer by way of gift immovable property held by them in India to relatives and charitable trust/organizations subject to the conditions that the provisions of any other law, including Foreign Contribution (Regulation) Act, 1976, as applicable, are duly complied with.
Can foreign citizen of Indian Origin acquire commercial properties in India?
Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizen of Indian Origin provided the purchase consideration is met either out of inward remittance in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in Form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.
Can they dispose of such property?
Ans:Yes.
Can sale proceeds of such property be remitted out of India?
Yes. Repatriation of original investment in respect of properties purchased by foreign citizen of Indian Origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Application for the purpose is acquired to be made to the Central Office of Reserve Bank within 90 days of the sales of property in Form IPI 8.
Can the properties (residential/commercial) 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 are the conditions if the power of attorney is being executed outside India?
1. The attorney should preferably be a resident of India.
2. The power of attorney should be executed on a stamp paper/plain paper as the case may be as applicable in the country in which the power of attorney is executed.
3. Any authorized official of the Indian Embassy/Consulate/Trade commissioner in the country where the executants resides should attest the signature of the executants.
4. The attorney's signature should be verified in India by Notary Public or his employer or his banker on a separate piece of paper, which should be submitted to SHFL together with the power of attorney.
5. Barring agricultural and plantation property, NRIs and PIOs are allowed to invest in property in India, and enjoy the same platform as resident Indians with respect to loans and insurance. They also enjoy parity with resident Indians on the quantum of investment in real estate, which is unlimited for all.
6. NRIs can purchase property from their remittances from abroad, and enjoy full repatriation benefits for up to two residential properties.
7. As per FEMA laws, PIOs are required to inform the RBI of their purchase of property in Form IPI 7 within 90 days of the transaction along with a bank certificate declaring the consideration made for the purchase.
The table below explains the policies and restrictions on NRIs and PIOs defined by the Foreign Exchange Management Act, 2000 on the acquisition and sale of property.
Resident outside India may:
Resident outside India may:
A Person of Indian Origin (PIO) is a citizen of any other country but whose ancestors were Indian nationals at least four generations away.
What is a PIO card?
A PIO card is issued to PIOs other than Bangladeshi and Pakistani nationals with Indian origins, holding a foreign passport.
Who is eligible for a PIO card?
1. Anyone who ever held an Indian passport;
2. Anyone whose ancestors up to the last four generations were settled in India and did not migrate to Pakistan or Bangladesh
3. Whose spouse is a citizen of India or a person of Indian origin
When did the PIO card come into force?
15th September, 2002
What advantages does the PIO card carry?
a) Parity with NRIs, therefore eligible to
i) Acquire non-agricultural and plantation property in India,
ii) Admit children to all educational institutes in India under NRI quota
iii)Apply for various housing schemes of LIC, state governments and other government agencies
b) Enter India without a visa
c) Exemption from registration at Foreigners Registration office at District Headquarters if stay in India does not exceed 180 days
Who issues the PIO card?
1. All Indian Embassies, High Commissions and Indian Consulates abroad. An officer at the Indian Mission notified for the purpose carries the authority to issue a PIO card.
2. Foreigners Regional Registration offices in New Delhi, Mumbai, Kolkata and Chennai
3. Joint Secretary (Foreigners), Ministry of Home Affairs, New Delhi
Which documents are required to apply for the card?
a) All relevant documents which substantiate claim to Indian origin
b) In the case of children, a copy of the parent's passport if parent still an Indian citizen, or old passport or birth certificate
c) 4 passport size photographs, front view
Note: PIO card feepayable as per prevailing rate, by a cheque favouring Embassy of India/Consulate General of India (as applicable)
What is the validity of the card?
15 years from the date of issue of the PIO card.
Are there any restrictions for card holders?
a) They do not have any political rights.
b) Cannot undertake activities like mountaineering, missionary and research work and existing PAP/RAP which need a special permit.
Can PIO card holders apply for citizenship?
Yes, under the Citizenship Act, the applicant should have resided in India for a minimum of 7 years before the application is submitted.
Can the card be withdrawn?
Yes, if
1. the PIO card was obtained through fraud, concealment of facts or false representation
2. the activities of the card holder in India do not conform to the laws of the country and the Indian Constitution
3. the card holder happens to be citizen of a country with which India is at war, or is supporting another country in acts of aggression against India
4. the PIO has been found guilty of acts of terrorism, smuggling of arms and ammunition and narcotics
5. has been sentenced in India up to one year's imprisonment or fined up to Rs.10,000
6. the card holder's presence in India is detrimental to the interests of the country Explanation for withdrawal of the PIO card by the Government of India is not necessary.
formalities required to be completed by foreign citizen of Indian Origin for purchasing residential immovable property in India
Under the general permission, file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.
Is permission required from RBI to sell such property?
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.
Repatriation of sale proceeds
In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993 will have to be credited to the ordinary non-resident rupee account of the owner of the property.
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.
Applications for necessary permission for remittance of sale proceeds should be made inform IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed from the date of payment of final installment of consideration amount, whichever is later.
Can foreign citizen of Indian Origin acquire or dispose of residential property by way of gift?
Yes. Reserve Bank has granted general permission to 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 immovable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India?
Yes. General permission has been granted by Reserve Bank to non-resident persons(foreign citizen) of Indian Origin to transfer by way of gift immovable property held by them in India to relatives and charitable trust/organizations subject to the conditions that the provisions of any other law, including Foreign Contribution (Regulation) Act, 1976, as applicable, are duly complied with.
Can foreign citizen of Indian Origin acquire commercial properties in India?
Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizen of Indian Origin provided the purchase consideration is met either out of inward remittance in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in Form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.
Can they dispose of such property?
Ans:Yes.
Can sale proceeds of such property be remitted out of India?
Yes. Repatriation of original investment in respect of properties purchased by foreign citizen of Indian Origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Application for the purpose is acquired to be made to the Central Office of Reserve Bank within 90 days of the sales of property in Form IPI 8.
Can the properties (residential/commercial) 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 are the conditions if the power of attorney is being executed outside India?
1. The attorney should preferably be a resident of India.
2. The power of attorney should be executed on a stamp paper/plain paper as the case may be as applicable in the country in which the power of attorney is executed.
3. Any authorized official of the Indian Embassy/Consulate/Trade commissioner in the country where the executants resides should attest the signature of the executants.
4. The attorney's signature should be verified in India by Notary Public or his employer or his banker on a separate piece of paper, which should be submitted to SHFL together with the power of attorney.
5. Barring agricultural and plantation property, NRIs and PIOs are allowed to invest in property in India, and enjoy the same platform as resident Indians with respect to loans and insurance. They also enjoy parity with resident Indians on the quantum of investment in real estate, which is unlimited for all.
6. NRIs can purchase property from their remittances from abroad, and enjoy full repatriation benefits for up to two residential properties.
7. As per FEMA laws, PIOs are required to inform the RBI of their purchase of property in Form IPI 7 within 90 days of the transaction along with a bank certificate declaring the consideration made for the purchase.
The table below explains the policies and restrictions on NRIs and PIOs defined by the Foreign Exchange Management Act, 2000 on the acquisition and sale of property.
Resident outside India may:
| Indian Citizen | NRI | PIO Resident | |
| Purchase Property From | yes | yes | yes |
| Sell Property To | yes | yes | yes |
| Receive Gift From | yes | yes | yes |
| Give Gift To | yes | yes | yes |
Agricultural Property |
|||
| Purchase Property From | No | No | No |
| Sell Property To | No | No | yes |
| Receive Gift From | No | No | No |
| Give Gift To | No | No | yes |
Resident outside India may:
| Indian Citizen | NRI | PIO Resident | |
| Purchase Property From | yes | yes | yes |
| Sell Property To | no | no | yes |
| Receive Gift From | yes | yes | yes |
| Give Gift To | yes | yes | yes |
Agricultural Property |
|||
| Purchase Property From | No | No | No |
| Sell Property To | No | No | yes |
| Receive Gift From | No | No | No |
| Give Gift To | No | No | yes |