NON RESIDENT INDIANS (NRI) AND INHERITED OR ACQUIRED (PURCHASED) PROPERTIES IN INDIA – HOW TO DEAL (SELL OR MANAGE) WITH IT?


Non Resident Indians (NRI), who have been living abroad for some time, find it very difficult in Selling an inherited property in India, especially when one is not aware of the procedures.

A). How did the property or the asset or the money inherited?

i). Will,

ii). Gift,

iii). Through Court Decree,

iv). Sale Deed,

v). Through Partition,

Secure all the title deeds of the property in the following manner, (whichever is applicable)

a). Title Deed or the Court Order or the Will or the Partition Deed.

b). Revenue Records for the preceding period.

c). Survey Records ( in case of agricultural property)

d). Clearances, approvals and NOC (if applicable)

 

B). Take over the possession and begin the following process:

 

1). Once the property is inherited by the NRI, must transfer the katha or patta to their name.

2). The taxes for the property must be paid regularly and must keep it up to date.

3). At least once in a year, the EC must be checked.

4). The possession must be taken immediately.

5). In the event of renting it out, a rent or lease agreement must be registered.  It is advisable that to save few rupees or evade stamp duty, 90% do not register the rent or lease agreement.

6). Always keep a watch on the property.

7). Keep all the original title documents and in the event if there is any defect or discrepancy, rectify the same and perfect the title.

 

C). Wish to sell the inherited property?

a). Pay up to date taxes.

b). Obtain the EC for the last 13 years.

c). Keep all the originals and do not hand over to anyone at any point of time, till the sale deed is executed and the sale amount or proceeds is received by the seller or the owner or the NRI.

d). Obtain latest Patta or katha certificate or katha extract or RTC.

e). Check the background of the buyer and the agent before, embarking on the negotiation.

f). Appoint the best Chartered Accountant and an advocate for the purpose of sale.  Do not try to save little money in the form of the fees payable to the professional and get into trouble.

g). Do not deal or transact with anti social elements or groups or persons of suspicious background or criminal background to get TOP PRICE.

h). If you do not have the PAN CARD, obtain the same, otherwise the tax implication/liability is 20%.

i). If all the procedures of sale is completed, try to present yourself at the sub-registrar in person to execute the sale deed, if not, GPA or SPA can be executed in favour of a close relative (safe) or any other person with trust to execute the absolute sale deed.

j). Check with the Chartered Accountant regarding the tax implication like Short Term Capital Gain or Long Term Capital Gain and if required the procedure for the repatriation of the sale amount to your country of residence.

 

 

 

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