Q.1. Can NRI / PIO rent out the residential / commercial property purchased out of foreign exchange / rupee funds?
A.1. Yes, NRI/PIO can rent out the property without the approval of the Reserve Bank. Rent received can be credited to NRO / NRE account or remitted abroad. Powers have been delegated to the Authorized Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs / PIO who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.


Q.2. In which account can the sale proceeds of such immovable property be cr edited?
A.2. The sale proceeds may be credited to NRO account.


Q.3. Who can determine whether a person is resident in India or not?
A.3. Reserve Bank does not determine the residential status. Under FEMA, residential status is determined by operation of law. The onus is on an individual to prove his / her residential status, if questioned by any authority.