As an NRI (Non-Resident Indian), you may want to buy property in India under your parents’ name. Here are the steps and considerations for
NRI buying property in parents name
:
Gift Deed:
Purchasing property in your parents’ name is considered a
gift.
When you gift immovable property to your parents in India, it’s
not subject to taxesin India.
Ensure you weigh the pros and cons before proceeding.
Transfer of Funds:
Transfer the money to your parents for purchasing the property.
Issue a
specific Power of Attorney (PoA)for your parents.
Consider using an
NRE (Non-Residential External) accountfor currency conversion and ease of transactions.
Benami Transactions Act:
Be cautious about transferring money directly to your parents.
The
Benami Transactions (Prohibition) Amendment Act, 2016strictly regulates property transactions.
Consult legal or real estate experts to ensure compliance.
Pros:
No tax implications in India for gifting property to blood relatives or relatives through marriage.
Emotional satisfaction of buying property for your parents.
Cons:
If the property generates
annual earnings(e.g., rental income), owners are liable for income tax.
Selling the property may attract
capital gains tax.
Once the property is in your parents’ names, you relinquish rights to it.
Future Considerations:
Think about the long-term consequences.
Legal disputes may arise if there are more descendants in your family.
Ensure your parents leave a
willto avoid future challenges.
How Can NRI Buy Property in Parents Name in India?
Tejas
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2024-01-03T15:29:14+00:00 2024-01-05T15:10:20+00:00Comment
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