NRIs Selling Inherited Property in India: Guidance and Procedures

Selling inherited property as a Non-Resident Indian (NRI) can be a complex but ultimately achievable task. This article provides a comprehensive guide to help NRIs navigate the process, including procedures, documents needed, and related requirements.

Key Points for NRIs Selling Inherited Property in India

According to the Foreign Exchange Management Act (FEMA), NRIs can sell inherited property in India to an Indian resident, another NRI, or a non-Indian, with certain conditions. The following steps outline the process for NRIs looking to sell their inherited property.

Conditions for Selling Inherited Property

NRIs are permitted to sell inherited property in India, including land, as long as they have the appropriate documentation and meet certain criteria. Key points to remember:

Purchasing residential or commercial property by foreigners is governed by OCI (Overseas Citizen of India) or PIO (Person of Indian Origin) status. Agricultural land and farmhouses can only be sold to Indian residents or persons with an agricultural background. Selling to non-Indians may require additional permissions from the Reserve Bank of India (RBI). For gifting inherited property to another NRI, prior permission from the RBI is mandatory.

Steps to Sell Inherited Property

This guide comprises two parts: the acquisition process and the sales transaction. Here are the detailed steps for selling inherited property:

Part 1: Acquisition and Documentation

Transfer Title of Inherited Property: The first step involves transferring the property title to your name. This can be done through the mutation of revenue records. A copy of the Will or a Succession Certificate issued by the local court is required to proceed. Collect Required Documentation: Gather all necessary documents for the sale transaction, including: Original purchase agreement and share certificate (if applicable) No Objection Certificate from the society Copy of the approved plan and occupation certificate PAN number

Part 2: Sales Transaction and Post-Sale Procedures

Choose a Sales Method: Decide whether to sell the property yourself or hire a professional firm or an intermediary. It is advisable to trust close relatives or friends due to the complexity and legalities involved. Tailor Selling Strategy: Determine the appropriate value for the property, manage the transaction structure, and issue a Power of Attorney. Address tax issues and repatriation rules.

Conclusion

Selling inherited property as an NRI can be challenging but is entirely possible with proper planning and adherence to legal procedures. Careful consideration and attention to detail in each step can ensure a smooth and hassle-free process.