Not sure How to sell your ancestral property in Hyderabad being an NRI ?
It’s always a confusing ad a great area when it comes to compliances, taxation, governing laws and selling regulations of an ancestral property held by NRI’s after taking citizenship from another country.
If you are confused on how to proceed further then here is the best guide for you on how to sell inherited property being an NRI. Provisions under the Foreign Exchange Management Act called FEMA and the Indian Income Tax Act, are applicable for the inheritance of immovable property by NRI’s and its continued ownership by NRIs or PIOs. Lets see how these two acts work,
Being a NRI, Can I inherit farm / agricultural land or farm house?
The answer is YES, you can read further to get a detailed information
NRIs or PIOs can inherit property in India even from another NRI or PIO?
The answer is YES.
The NRIs or PIOs can inherit property from person other than parents?
The answer is YES, you can from anyone including his/her relatives
MYRA property consultants helps NRIs sell or guide ancestral property / inherited property in Hyderabad.
What Types of properties / assets can be inherited by NRIs and POIs ?
A non-resident Indian (NRI) or person of Indian origin (PIO), can inherit any immovable property in India, let it be a residential property or a commercial property and also they can even inherit farm / agricultural lands or a farmhouse, which NRIs otherwise not entitled to acquire by way of purchase according to the law of the land. A NRI can inherit the property not just from bloodline like father, grand father or mother but also from anyone including his/her relatives. The NRI or PIO can inherit property in India even from another NRI or PIO, its just that, it is subjected to certain conditions. RBI permission is required, if the inheritance results in favour of a citizen of a foreign country, who is a resident citizen outside India. It is keen to know that the individual, from whom the NRI inherits the property, should have acquired the property being bequeathed, in accordance with the provisions of laws of India relating to foreign exchange, prevalent at the relevant time. So, You have to understand that if the asset was acquired without obtaining permission from the RBI at that time when the permission was required to be obtained, such property cannot be inherited by the NRI or PIO, without specific permission of the RBI, this is where MYRA steps in and get the necessary permissions and clearances, MYRA has a strong hold in this area especially in Hyderabad and surrounding cities.
Tax related compliances when NRIs or POIs decide to keep or sell the inherited property in India
The NRI who has inherited property in India can either continue to retain the ownership of the property, or sell it or gift it. In any of the cases there are certain tax implications and compliances that needs to be fulfilled. As per Indian tax law wealth tax has been abolished and the NRI does not have any wealth tax complications that needs any attention for being the owner of the immovable property.
You can talk to MYRA property consultant for a clear solution on any of Tax compliances on properties in Hyderabad.
There are various implications again in taxation based on
Whether the NRI is a non-resident for the purpose of income tax laws
Whether the NRI decides to keep the inherited house property vacant, for the purpose of residing in it during his visit to India
Whether the NRI owns more than one house property in India
Whether the NRI total income from all the income sources is more than the basic exemption limit in India or not
In order for the NRI to gift away or sell the Inherited property he got and wanted to remit the money outside India then there certain restrictions that NRI has to be aware of. There are lot of questions that follow this like
What if buyer is another NRI
What if he gifts it to a friends who is not relative to the NRI
What if the person is Indian citizen?
What price he has to pay the stamp for gifting
What is the market price declaration?
What if the property if Farm land or Farmhouse
What is the property is assigned or NGO property