Selling or purchasing a property is not as simple as it sounds. Things can turn out to be more complex if you are a PIO or an NRI who has been away from the motherland for a long time now and moreover an NRI inheriting property involves a lot of legal regulations and inferences. At some day if you come to know that you’ve inherited an Indian property, you for obvious reasons would be lured to reap all the benefits and profits from it. Let us now get an understanding of the ideal ways for an NRI to sell inherited property in India and the related tax formalities:
How Can NRIs Sell Inherited Properties – The Process?
Inherited property by an NRI must be confirmed for clear title as well as ownership, to begin with the process of selling. This can be done by checking the Will as a reference if it was left behind by the last property owner in concern. In order to ascertain the clear ownership, one needs to fetch the ‘patta’ or ‘khaata’ records from the Municipal Corporation.
If the title has not been transferred as per the records, however, is only stated in the will, the process named ‘mutation of property’ must be adhered to. This implies that an NRI needs to get the title of the inherited property transferred in his/her name. In case there is no will, one must get the succession certificate issued by the court in order to obtain the title of the property.
Documents Required for Selling an NRI Inherited Property in India:
There is an array of documents which an NRI requires to have in place for selling his/her inherited Indian property. The documents required are as follows:
Original agreement of purchase: This document is also referred to as the title of the property.
Original share certificate: The Co-operative society wherein the property is to be sold issues this particular document. If it is not available or is missing, one needs to get a duplicate copy issued. Furthermore, a person also needs to issue a notice in the local newspaper and put up the information on the notice board of the society so as to attest that there aren’t any kind of objections on selling that real estate to the prospective buyer.
PAN number: A pan number is mandatory for NRIs if they are carrying out a transaction of more than Rs. 50,000, which is usually the case when it comes to selling any property.
Form 60: In case an NRI is not in a position to provide his/her PAN number, then a Form 60 needs to be submitted to the office of the registrar.
Sanctioned property plan: The plan of the inherited property which is on sale requires an approval from the municipal authorities. For this purpose, the property owner also needs to have an occupancy certificate.
Proper Procedure of Selling an NRI Inherited Property in India:
At the time of selling an inherited Indian property, the NRI can undertake the entire course of action by himself with some help from dependable relatives in India. If there isn’t any dependable person or a specific aid in India, one can seek help from an experienced company or firm like NRI Legal World who are involved in the handling matters concerning properties on behalf of NRIs. We are an experienced company having a vast team of legal professionals, brokers, financial consultants etc. Our goal is to provide end-to-end NRI property services.
The procedure for selling a property starts with identifying the true value of the property. Get an idea from the latest transacted properties in your area to understand the feasible cost range of the property under consideration.
As soon as the suitable buyer is found, they have two options, either opting for cash or a cashless method for performing the transaction. In recent times, cashless purchases have become a trend in comparison with the past times wherein real estate was powered primarily on the cash basis.
Choosing Between Admit PoA and Full PoA:
A crucial factor for an NRI to take into consideration is that it is not mandatory to give full PoA to someone in India in order to perform a property-related transaction. Admit Power of Attorney is also an option with the NRIs wherein they need not stay in India in order to complete the process of selling. With regards to the Admit PoA, every document and concerned certificate needs to be signed by the NRI and the person that has been issued the Admit PoA can then represent the NRI for the completion of the registration process.
However, if an NRI opts for giving the full PoA, he or she needs to visit India once to sign the Power of Attorney, which is drafted in India in the presence of a consulate. The PoA is issued in the name of a person who is reliable, be it a relative or a close friend. If you are planning to hire an external company to help you out with the selling of inherited Indian property, then the process of selling differs from one company to the other. A few companies might prepare all the documents that are required for the process with the help of Power of Attorney and would thereafter send those documents to you for your signature. The procedure of registration is then undertaken the by the person holding the PoA.
Managing Tax Implications:
For selling an NRI inherited property in India, the seller does not have to be concerned regarding the aspects of taxation. You can easily file the income tax return to obtain the refund of the additional income tax amount that had been deducted by the purchaser after taking into consideration the indexation advantage presented to the seller (which is you).
To conclude, the general process mentioned above, that has been segregated into various small steps, simplifies the complete sales procedure as well as the associated transactions for the NRIs.
Looking for a reliable company to help you sell your inherited property in India? No worries, we at NRI Legal World have got you covered. We offer a vast range of NRI services from property management, handling property disputes, buying and selling of properties, Power of Attorney, making a will, and much more. To learn more about our NRI legal services and administrative solutions, email at info@nrilegalworld.com or call at +91 85-85-85-71-71.
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