Hi, My father will be registering an under construction property in his and my mom's name. I (son) am an NRI and he asked if my name can be added as the third owner. However, there were some concerns/questions: Can the son, who is not an Indian tax resident, be a part owner of the property? Will there be an issue if the son does not contribute financially towards the property? Can the father show this as a transfer of inheritance? Will there be an issue with tax authorities? If not be a part owner, can the parents be the owners and add the son as a nominee? If nominee then the parents plan to write a will to make son the sole heir of the assets. In that case can the will be challenged by the two daughters? Thank you for taking the questions in advance.
You can be part owner of residential property
2) it would not be an issue if your name is added and no funds are contributed by you
3) son can be made a nominee
4) father can execute will bequeathing property to son
5) will should be attested by 2 witnesses
6) registration of will is optional
7) daughters can challenge the will
Dear Querist
My opinion on your queries are as under: -
1. Yes, you can be an owner of the property jointly with your parents.
2. No, there is no issue. Due to love and affection, the parents can add you as the third owner of the property.
3. No, there will be no issue in the Tax authority.
4. Yes, they can appoint/nominate you as a Nominee of them.
5. A Will can be challenged but if the Will is registered then they will not get success in their case.
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Dear sir,
Acquisition and Transfer of Immovable Property in India
A person resident outside India who is a citizen of India (NRI) can acquire by
way of purchase, any immovable property in India other than agricultural
land/plantation property/farm house. He can transfer any immovable property
other than agricultural or plantation property or farm house to:
a) A person resident outside India who is a citizen of India or
b) A person of Indian origin resident outside India or
c) A person resident in India.
He may transfer agricultural land/ plantation property / farm house acquired by
way of inheritance, only to Indian citizens permanently residing in India.
A Non-residential Indian (NRI) is entitled to all tax benefits related to purchase of property that a resident Indian is. So, you can claim an Rs 1 lakh deduction under 80C. Vacant properties are considered 'self-occupied' and hence you do not have to pay any tax on them.
Also, When an NRI invests in certain Indian assets, he is taxed at 20%. If the special investment income is the only income the NRI has during the financial year, and TDS has been deducted on that, then such an NRI is not required to file an income tax return.
Yes, you can have the ownership of the property in India. The father can transfer his property to his NRI son. The tax paid by the NRI on this property will be calculated differently than Non-NRI candidate.
An NRI can gift residential and commercial property to a person residing in India, or another NRI. However, if the property is agricultural land, plantation property or a farmhouse, it can only be gifted to a citizen of India residing in India.
There is no restrictions to include a NRI son in the property proposed to be bought by the Indian father, his name can be included in the registered sale deed as one of the buyers.
2. There is no necessity to show that the son had actually contribute towards the sale consideration amount or not.
3. At the stage of purchasing a property there is no question of inheritance, hence simply including the son's name as co-owner of the property in the registered sale deed is enough, do not complicate the simple things by adding unnecessary terms making the sale deed invalid.
4. The parents can include the son as co-owner of the property at the time of registration of the property, besides they can even name him as their nominee while acquiring the share certificate from the Association of the apartment/flat.
If the son is not a joint owner then the parents who are the joint owners of the proeprty can no doubt transfer the property by a testamentary disposition i.e., by a Will on his name. Let them make it clear in the Will that they have excluded the daughters in this Will for the reasons that they were given properties earlier or the marriage expenses incurred to them etc as a reason for excluding them from this Will and making you, i.e., the son as an exclusive and only beneficiary of the Will to acquire the bequest made in the Will.
This clear definition and explanation in the Will would avoid litigation in future in this regard.
Hi, there is no legal hurdle your name may add as co-owner of the under constructions property.
1. there is no legal embargo against the son being added as a co-owner even if he is not contributing for the purchase. The son can always be joined as part of a family arrangement
2. if the son is not joined as a co-owner, then post demise of the owners i.e. the parents, the property will devolve on their children who would be their legal heirs
3. there can also be a clause in the agreement that in the event prior to handover of possession to the parents/owners, they die, then the constructed flat can be handed over to the son as their nominee. However the son can hold the flat only as a trustee and not as owner
4. if the parents make a Will gifting the flat to the son, then if the daughters accept such a Will/s, then the son can become the owner of the flat. If there is any challenge by the daughters to the Will/s then if they are not proved, the property will devolve by intestate succession and will go to all the legal heirs as per law
- Yes, an NRI can be the owner of a residential and commercial property.
- Further contribution financially is not mandatory to be one of the party in the property .
- Yes, there will not be any tax issue .
- Inheritance is not needed to show, as an NRI can be the owner of property in India except an agriculture land in some states are prohibited without the prior permission from the RBI.
- Further , your father can also write a WILL as well in your favour , if that property is not an ancestral , otherwise daughters having right to claim .
1. Property can not be registered. What is registered is the Title Deed in connection with the property.
2. Your father can add your name as the co-buyer of the said property even if you are NRI. Your PAN or AADHAR Card No. shall have to me mentioned in the title deed. However, you shall have to sigh the title/sale deed at the time of registering it before the Registrar.
3. Your father can write a will in your favour.
4. You can be mentioned as the Nominee, if the property is in a complex run by a Society.
It can be added in will and you can receive the same in heritance. Name can also be added unless q agricultural land
