These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.
I am an Overseas Citizenship of India (OCI) card holder, having acquired foreign citizenship recently. I understand OCI cardholders cannot buy land in India, but can I become a joint owner in a land bought by my mother?
Rajat Dutta Founder & Initiator, Inheritance Needs Services: As per Regulation 4 of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000, an individual of Indian origin resident outside India can acquire an immovable property, other than agricultural property, plantation or farmhouse, in India. One can invest in or acquire residential or commercial real estate assets in India if payment is
made either from funds received in India through normal banking channels by way of inward remittances from outside India, or from funds held in any non-resident account. Your mother, a resident, buying land in India along with you as a joint holder (being an OCI card holder) would be violative of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in
India) Regulations, 2000, and the Foreign Exchange Management Act (FEMA). The Section 6(5) of FEMA allows an individual residing outside India to hold, own, transfer or invest in an Indian immovable property if it was acquired, held, or owned while the individual was a resident in India or if it is inherited from a resident
I have recently acquired foreign citizenship and will be applying for an OCI (overseas citizen of India) card soon. I would like to know if I can become a co-owner for my mother’s property in India
Umesh Kumar Jethani Founder, ApkiReturn: As a foreign citizen, you can become a co-owner for your mother’s property in India only through inheritance or as a gift. There is no need for a separate government approval if your resident Indian mother transfers residential or commercial property to you via a registered gift deed or will. However, until you receive your OCI card, you are not permitted to purchase immovable property in India. Even after
obtaining the OCI status, you are restricted from acquiring agricultural land, plantations, or farmhouses. Once you have been granted an OCI card, you will have the same property rights as non-resident Indians (NRIs) for purchasing residential and commercial property, again excluding agricultural and plantation lands. To proceed, complete your OCI application and wait for approval. If your mother intends to transfer her share, she can do so through a
registered gift deed. It is advisable to engage a local property lawyer to ensure that the transfer complies with the Registration Act and FEMA regulations. This will help you formalise co-ownership in full compliance with Indian property laws.
Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: [email protected] Source Name : Economic Times