NRI (Non-Resident Indian) is an Indian citizen who resides abroad for employment, business, or any other purpose, indicating an indefinite stay abroad. Foreign citizens of Indian origin are also treated at par with NRIs.

Person of Indian Origin (PIO) is an individual (not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan) who:

• At any time held an Indian passport.
• Whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

OCI (Overseas Citizen of India) refers to a person who:

1. Was a citizen of India at any time after the commencement of the Constitution.
2. Was eligible to become a citizen of India at the time of the Constitution's commencement.
3. Belonged to a territory that became part of India after August 15, 1947.
4. Is a child or grandchild of such a citizen.

Note: Citizens of Pakistan or Bangladesh are not eligible for OCI status.

Required documents include:

• PAN Card
• PIO or OCI Card (For PIO/OCI citizens)
• Passport (For NRI)
• Passport-size photographs
• Address proof

The following can purchase immovable property in India:

1. NRI (Indian citizen residing outside India).
2. PIO (Except citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan).

Note: This permission does not extend to agricultural land, plantation property, or farmhouses.

Type of Asset: Assets like house property, land and building, jewelry, development rights, etc.

Long-Term: 20.6%

Short-Term: 30.9%

Exemption available (only for long-term capital gains):

• The long-term capital gain arising on the sale of a residential house can be invested in buying/constructing another residential house within the prescribed time. The exemption is restricted to the amount of capital gains or the amount invested, whichever is lower.
• If the amount of capital gains is invested in bonds of the National Highways Authority of India (NHAI) or Rural Electrification Corporation, then the entire capital gain is exempted, or the proportionate gain is exempted.
• As per the financial budget 2007-08, a cap of INR 50 lakh has been imposed on the investment that can be made in capital tax-saving bonds.

In case a non-resident pays tax on capital gains in India, they may be able to claim a tax credit in their home country, as per DTAA agreements. The amount of tax credit depends on the respective country’s DTAA and tax laws.

1. If the property was acquired using foreign exchange remitted through normal banking channels or from an NRE/FCNR (B) account, the repatriation amount should not exceed the original investment. Repatriation is limited to two such properties.
2. If the property was acquired using rupee sources, NRIs/PIOs may remit up to USD 1 million per financial year from their NRO account, subject to tax compliance.