Yes, an NRI (Non-Resident Indian) can transfer property to a resident Indian.
Transfer of Property by NRI:
Inheritance Transfer: An NRI can transfer property to a resident Indian through inheritance. Under the NRI property inheritance regulations, an NRI can inherit both agricultural and non-agricultural property from a resident Indian. The inheritor must provide a legal heir certificate and follow the necessary legal procedures to have the property title transferred to their name.
Gift Deed: An NRI can transfer property to a resident Indian as a gift. This requires executing a gift deed, which must be registered with the sub-registrar’s office in India. The gift deed must be signed by both the donor (NRI) and the donee (resident Indian), along with two witnesses.
Sale Deed: An NRI can also transfer property by selling it to a resident Indian. This involves drafting a sale deed, which must be registered with the sub-registrar’s office. The NRI must comply with the FEMA (Foreign Exchange Management Act) guidelines regarding the repatriation of sale proceeds.
NRI Leasing Property in India:
Leasing Procedure: An NRI can lease their property in India to a resident Indian. This involves drafting a lease agreement, specifying the lease term, rent amount, and other conditions. The lease agreement must be signed by both parties and registered with the sub-registrar if the lease period exceeds 11 months.
Taxation: Income earned from leasing property in India is subject to taxation. The NRI must declare this income and pay the applicable taxes in India. It is advisable to consult with a tax advisor to ensure compliance with Indian tax laws.
Legal Documentation:
Proof of Ownership: The NRI must provide proof of ownership, such as the property title deed or sale deed.
NRI Status: Documents proving the NRI status, such as a passport or OCI (Overseas Citizen of India) card.
Legal Heir Certificate: If the transfer is through inheritance, a legal heir certificate is required.
Assistance from Legal Experts:
Seeking the help of a property lawyer in India is highly recommended. They can guide you through the legal intricacies of NRI property inheritance and NRI leasing property in India, ensuring that all documents are correctly prepared and the transfer process is legally compliant.