• Australian Citizen looking to sell a home in Hyderabad without OCI. Need help.

Hi everyone,

I recently obtained my Australian citizenship on 5th October 2023. 
I haven't renounced my Indian citizenship yet and haven't applied for OCI yet. 
It's just been 5 days since I got the citizenship.

I have an urgent need to sell off an apartment property in Hyderabad, India. 
I plan to go to India as soon as possible and sell the flat by November or December.

I do not have an OCI card and cannot get it before the sale of the house as it seems to take a lot of time.

I also do not have my Indian passport with me. It is with VFS Global - Melbourne for a Police Clearance Certificate process. I will not be able to get it before going to India. It will take time.

Therefore, no OCI, and no Indian passport.

I will get my Australian passport soon and then apply for a tourist e-visa to go to India.


Questions that I have are:

1. Can I sell my property without the OCI card and Indian passport?
2. I have my aadhar card, pan card and Australian passport. Are these enough?
3. Will I have any problems in taxation without the OCI card?
4. Will I be able to get money to Australia without any issues?

Please advise. Thank you so much.

Sana
Asked 2 years ago in Property Law
Religion: Muslim

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6 Answers

You can sell the property without OCI card 

 

2) PAN Card and Aadhar card is sufficient 

 

3) TDS would be deducted at applicable rate from sale consideration 

 

4) sale proceeds have to be deposited in NRE /NRO account 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

Here are some of the answers and tips that you should know before going ahead with this deal:

  1. Yes, you can sell your property without the OCI card and Indian passport, as long as you have a valid visa to enter India and a proof of your identity and ownership of the property. However, having an OCI card or Indian passport would make the process easier and faster, as you would not need a visa and you would be treated as an Indian citizen for most purposes.
  2. Your Aadhar card, PAN card and Australian passport may be enough to prove your identity and ownership of the property, but you may also need some other documents, such as the title deed, no objection certificate, encumbrance certificate, tax receipts, etc. You should also check if your Aadhar card and PAN card are still valid and updated, as they may have been deactivated or cancelled after you acquired foreign citizenship.
  3. You may have some problems in taxation without the OCI card, as you would be treated as a foreign national for tax purposes. You would be liable to pay capital gains tax on the sale of your property in India, which is 20% for long-term gains (if you held the property for more than two years) and 30% for short-term gains (if you held the property for less than two years). You would also have to pay tax on the income from the sale of your property in Australia, as per the Australian tax laws. However, you can claim a credit for the tax paid in India under the Double Taxation Avoidance Agreement (DTAA) between India and Australia.
  4. You should be able to get money to Australia without any issues, as long as you comply with the foreign exchange regulations of both countries. You would have to open an NRO (Non-Resident Ordinary) account in India to receive the sale proceeds of your property. You would also have to deduct TDS (Tax Deducted at Source) at 20% or 30% from the sale consideration and deposit it with the Indian government within seven days from the end of the month in which TDS is deducted. You would also have to issue a TDS certificate to yourself in Form 16A within 15 days from the due date of depositing TDS. You can then transfer the money from your NRO account to your Australian bank account after obtaining a certificate from a chartered accountant in Form 15CB and filing an online declaration in Form 15CA on the income tax website. You should also check if there are any limits or restrictions on transferring money from India to Australia by both countries.

These are some of the answers and tips that you should know before going ahead with this deal.

 

Muraleedharan R
Advocate, Trivandrum
386 Answers
2 Consultations

1. You can sell the property with your Australian identity card too.

2. Yes, that would be sufficient. 

3. You have to LTCG as applicable for foreign citizen 

4. You can transfer the money through normal channel 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Acquisition and transfer of immovable property in India by NRIs / PIOs / Foreign Nationals of Non-Indian Origin is regulated in terms of Sub-sections (3), (4) and (5) of Section 6 of the Foreign Exchange Management Act, 1999 and circulars issued  by RBI from time to time.

As a PIO you can transfer any immovable property in India (other than agricultural land / farm house / plantation property) by way of sale to a person resident in India. you can also  transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India, who is a citizen of India or to a Person of Indian Origin resident outside India. Any transaction involving acquisition of immovable property is subject to applicable tax laws in India.

  1. Proof of Indian origin is sufficient, OCI is not necessary.
  2. Aadhar, pan will establish your Indian origin.
  3. General law of taxation will be applicable to you.
  4. All transaction in white money, no legal impediment will be faced in transferring money to your account.

Ravi Shinde
Advocate, Hyderabad
5128 Answers
42 Consultations

Dear client,  

Congratulations on obtaining your Australian citizenship! Selling property in India as a foreign citizen can be a complex process, but I can provide some general guidance:

Selling Property without OCI Card and Indian Passport:

Generally, it is possible to sell property in India without an OCI card or an Indian passport. However, there may be additional documentation and procedures to follow.
You may need to appoint a legal representative or a power of attorney holder in India who can act on your behalf in property transactions. This person should be an Indian citizen or an NRI (Non-Resident Indian).
It's advisable to consult with a local lawyer in Hyderabad who specializes in property transactions to guide you through the specific requirements and documentation needed.
Documents Required:

Your Aadhar card, PAN card, and Australian passport are essential documents. These documents will help establish your identity and tax status in India.
Ensure that your Aadhar card and PAN card are linked to your property records to facilitate the sale.
Taxation:

Selling property in India may have tax implications, including capital gains tax. You should consult with a tax expert to understand your tax obligations and ensure compliance with Indian tax laws.
Not having an OCI card should not directly impact taxation, but it's important to follow all tax regulations.
Repatriation of Funds:

As an Australian citizen, you should be able to repatriate the sale proceeds to Australia. However, it's crucial to comply with India's foreign exchange regulations and tax laws.
You may need to open an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account in India to receive the funds and then transfer them abroad.
Legal Assistance:

Engaging a local lawyer in Hyderabad who is well-versed in property transactions and can assist you with the sale process is highly recommended. They can help navigate the legal complexities and ensure a smooth transaction.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

1. As per the Reserve Bank of India , an Overseas citizens of India (OCIs) and NRI don't require prior approval for buying or selling immovable properties like houses in the country.

- Hence, you can sell the property without the OCI Card and passport 

2. Yes, it is sufficient to have Aadhar card and pan card

3. No

4. Yes, through NRE account 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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