• Selling property in India as a US citizen

Hi,

My mother was born in India and inherited a house from her father. Can she as a US Citizen (does not have Indian Citizenship anymore) sell the house?

Should she get a OCI card? Or is a regular visiting Visa ok?

The house is in Aligarh UP.
Asked 9 years ago in Property Law
Religion: Muslim

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6 Answers

1. She is a Citizen of USA and is a PIO,

2. She can sell of her saiud property after getting OCI card.

Krishna Kishore Ganguly
Advocate, Kolkata
27453 Answers
726 Consultations

1. Selling a property in India by a foreign citizen is not difficult nor any speical permission is required.

2. Only in the vent of buying a property by a foreign citizen one needs special permission from RBI.

3. She is entitled to both OCI card and Visa.

Since Visa has short life span and needs to be obtained ion every event of visit to India it is better to apply for OCI card as it would dispense with applying for Visa for ever while visiting or staying in India.

Devajyoti Barman
Advocate, Kolkata
23207 Answers
513 Consultations

A foreign national is at liberty to sell his property to a person resident in India, an NRI or a PIO. She should obtain the PIO card.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

1) your mother is at liberty to sell the house she has inherited .

2) she can obtain OCI card .

3)In case of inherited property, the date and cost of purchase for purposes of computing the period of holding as well as cost of purchase is taken to be the date and cost to the original owner. While computing LTCG, the cost to the previous owner (the person from whom the property is inherited) would be considered as the cost of purchase. are subject to a tax deducted at source (TDS) of 20% on LTCG.

Ajay Sethi
Advocate, Mumbai
96879 Answers
7815 Consultations

She can very well sell the property as a owner of the property as per her choice. She need not be an Indian citizen to sell the property now.

It makes perfect sense that holding on to real estate is not always feasible if one is unable to manage them.Selling such real estate is usually not the biggest challenge. What can create confusion is the viability - and ways and means - of remitting the resulting funds back into the country of residence. NRIs are subject to a Tax Deducted at Source (TDS) of 20 percent on the long term capital gains. But there are certain instances when NRI can get a waiver of the TDS. General permission is available to NRIs and PIOs to repatriate the sale proceeds of property inherited from an Indian resident, subject to certain conditions. If those conditions are fulfilled, the NRI need not seek the RBI's permission.

Regarding the tax exemption and liabilities in that country has to be verified through a tax consultant.

T Kalaiselvan
Advocate, Vellore
87080 Answers
2338 Consultations

A persons status of citizenship is important for selling the property and paying tax. In your case ,your mother inherited the property so it shall no legal bar for sell . Her status is OCI . She can sell the same .PIO or foreign national can inherit property from a person resident in India, a person resident outside India. However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.

Ajay N S
Advocate, Ernakulam
4094 Answers
113 Consultations

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