Can a Person of Indian Origin (PIO) acquire property by succession in India? Can a PIO acquire property by Gift?

Persons of Indian Origin (PIO) have specific legal rights
Persons of Indian Origin (PIO) have specific legal rights.

Persons of Indian Origin (PIO) have specific legal rights and restrictions concerning the acquisition, possession, and disposal of immovable property in India. These rights are governed by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA).

Answer of the 1st QUESTION –
1. Can a Person of Indian Origin (PIO) acquire property by succession in India?

· Under Indian succession laws, PIOs can inherit property in India. If a Non-Resident Indian (NRI) or an Overseas Citizen of India (OCI) passes away, their immovable property can be inherited by a PIO.

· This legal provision ensures that PIOs have the right to acquire property through inheritance from deceased NRIs or OCIs.

Answer of the 2nd QUESTION –
2.Can a PIO acquire property by Gift?

According to the RBI’s Master Circular issued on July 1, 2013, PIOs are permitted to receive immovable property in India as a gift, with the exception of agricultural land, plantation property, and farmhouses. Such gifts can be received fromResidents of India,NRIs, orOther PIOs.

· This regulation allows PIOs to receive property from family members or other eligible individuals as a gift, provided the property type and the donor meet the specified criteria.

Rights of Spouse of NRI/OCI in Regards to Acquisition of Property in India Jointly

Rights of Spouse of NRI/OCI in Regards to Acquisition of Property in India Jointly

Joint Acquisition of Property

In case of eligibility for joint acquisition a person resident outside India, who is not an NRI or OCI, can acquire immovable property in India jointly with their NRI or OCI spouse. This excludes agricultural land, farmhouses, and plantations. The acquisition is subject to the conditions outlined in Rule 25 of the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019.

Financial Conditions for Joint Acquisition

According to Rule 25 of the Foreign Exchange Management Rules 2019, the following conditions apply to the payment for the transfer of property for permissible sources of payment.

.Funds from Banking Channels:The payment must come from funds received in India through banking channels from outside India.
.NRI Account Funds: Alternatively, the payment can be made from funds held in an NRI account as per the Foreign Exchange Management Act (FEMA) and RBI regulations.

Prohibited Methods of Payment

Payments for the transfer of property cannot be made using traveller’s cheques, foreign currency notes, or any other methods not specified in the regulations.

Conditions Related to Marriage

To jointly acquire property, the marriage between the NRI/OCI and their non-NRI/OCI spouse must be registered and must have lasted continuously for at least two years prior to the property acquisition.

The non-resident spouse must not be otherwise prohibited from acquiring the property as per applicable laws and regulations.

Compliance with Legal and Regulatory Requirements

All transactions must comply with the guidelines set forth by FEMA, ensuring the proper channels and methods of transaction are utilized.

Ensuring that all documentation is accurate and complete is essential for compliance with the relevant legal and regulatory requirements.

By adhering to these conditions, the spouse of an NRI or OCI can jointly acquire immovable property in India, ensuring compliance with the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019, and other applicable regulations.