A Person of Indian Origin (PIO) refers to an individual who is not a citizen of Pakistan or Bangladesh and meets one of the following criteria,

• They have held an Indian passport at any point in time.
• Their parents or grandparents are citizens of India as per the Indian Constitution.
• They have a spouse who is either an Indian citizen or a PIO (for the purpose of bank deposits). 

Furthermore, a PIO is eligible to purchase real estate in India and make investments in Indian properties.

In accordance with the guidelines outlined by the Reserve Bank of India (RBI), individuals falling under three categories are eligible to purchase property in India. These categories include Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs). 

While each category may have distinct characteristics, they are collectively referred to as NRIs for various purposes such as opening bank accounts, making deposits and acquiring real estate in India. The potential for NRI investment in India is significant, offering ample opportunities for individuals within these categories to engage in property ownership within the country.

When it comes to NRI investment in India, the act of acquiring property does not attract any tax liability. However, certain aspects related to the property are subject to income tax. These include the income derived from the property in the form of rent, the annual value of the house if the individual owns more than one residential property and the capital gains obtained from the sale of the property. These taxable components are important considerations for NRIs investing in real estate in India.