The ownership of inherited immovable property in India by a person resident outside India (non-resident) is subject to specific rules and regulations, especially when the inheritance is from a person resident in India. Here’s a detailed explanation of the guidelines governing the ownership of such property:
**1. Inherited Property by Non-Resident: A non-resident, who is a foreign national or an NRI/PIO, can inherit immovable property in India from a person resident in India. There is no prohibition on non-residents inheriting property in this manner.
**2. Non-Resident Indian (NRI) or Person of Indian Origin (PIO): NRIs and PIOs can inherit immovable property from a person resident in India without any restrictions. They have the same rights as residents when it comes to inheriting property.
**3. Foreign Nationals: Even foreign nationals can inherit property in India from a person resident in India. There is no specific prohibition on foreign nationals inheriting immovable property.
**4. Repatriation of Sale Proceeds: Non-residents, including NRIs, PIOs, and foreign nationals, should understand that the repatriation of sale proceeds from inherited property may have certain limitations and eligibility criteria. The Reserve Bank of India (RBI) regulates the repatriation of funds, and it’s crucial to follow RBI guidelines and seek necessary approvals if required.
**5. Compliance with Foreign Exchange Management Act (FEMA): All individuals, whether they are NRIs, PIOs, or foreign nationals, must comply with the Foreign Exchange Management Act (FEMA) regulations when dealing with inherited immovable property in India. FEMA rules govern the acquisition, holding, and transfer of such property.
**6. Documentation and Registration: Inherited property should be properly documented and registered in the name of the beneficiary, following the legal requirements and processes.
**7. Tax Implications: Tax laws in India may impose capital gains tax, property tax, and other tax liabilities on inherited property. Non-residents should be aware of and address these tax obligations.
**8. Legal Advice: Given the complexity of property inheritance and ownership regulations, it is advisable for non-residents to consult with legal experts or property advisors who specialize in Indian real estate laws. They can provide guidance on inheritance processes, compliance, and any potential tax liabilities.
The rules and regulations concerning inherited immovable property may change over time, and they may vary based on the individual’s specific circumstances and the property’s location. Being well-informed and seeking professional advice is crucial for non-residents looking to inherit and own property in India, whether it’s from a person resident in India or abroad.
