British citizen of indian origin holding land in india
sanjay
(Querist) 24 March 2014
This query is : Resolved
Me and my wife moved to the United Kingdom around 1970 and are now citizens here holding a British Passport, We have not registered for OCI. Can I hold a property in the name of my wife, my son who was born in the United Kingdom and my daughter, who was born in India but is now a British citizen. Further can I apply for pan card and hold a saving account and earn interest for the same in India without declaration of it in the UK
R.V.RAO
(Expert) 24 March 2014
purchase of property BY NRI
If you are an NRI or Person of Indian origin you can invest in land (other than agricultural, plantation or farm house). Repatriation of sale proceeds is permissible up to the amount of foreign exchange used for acquisition. Banks generally do not lend for purchase of land; however, loan based on assets/earning potential may be possible. This should be ascertained from the Bank concerned. Sale of land within 3 years of acquisition will render it a short-term capital gain taxable at normal slab rates. If held for more than 3 years, indexation benefit is admissible on cost of acquisition and rate of tax would be 20% + applicable surcharge and cess.
SOURCE:NRI TAX ISSUES http://www.thehindubusinessline.in/bline/blnri/exp-rbi.htmSOURCE:
purchase of property BY FOREIGN NATIONAL:
a person resident outside India(foreign national) can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.
3. The regulations under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time, permit a NRI or a PIO to acquire immovable property in India, other than agricultural land or, plantation property or farm house.
Further, foreign companies who have been permitted to open a Branch or Project Office in India are also allowed to acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. Such dispensation is however not available to entities which are permitted to open liaison offices in India.
4. The restrictions on acquiring immovable property in India by a person resident outside India (foreign national) would not apply where the immovable property is proposed to be acquired by way of a lease for a period not exceeding 5 years or where a person is deemed to be resident in India.
In order to be deemed to be a person resident in India, from FEMA angle, the person would need to comply with the provisions of Section 2(v) of FEMA 1999.
Note: Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer immovable property in India, (other than on lease not exceeding five years) without the prior permission of the Reserve Bank.
source:http://www.rbi.org.in/scripts/FAQView.aspx?Id=
taxation:
pl. note a resident of india is taxable for his global income and a non resident for his indian income.
PAN:
yes.you can apply for pan, as per revised guidelines as follows:
As of April 2012, application form changes have come into effect. There are now two types of PAN card application forms. Form 49A which is for Indian citizens and Form 49AA which is for foreigners. All Persons of Indian origin (PIO) who have acquired foreign citizenship, must apply for PAN card using the application form for foreigners, i.e. Form 49AA.Hence, even OCI holders, living in India, should apply for a PAN using Form 49AA and not Form 49A. This is because even oci holders are foreigners.
source:http://nriinformation.com/nri_questions5/faqpage138.htm
bank accounts:
The RFC accounts offer the best solution for NRI's returning to India. These accounts allow you to hold foreign currency even on your return. You have the option of maintaining the RFC accounts in the form of a Savings or a Term Deposit Account.
RFC Savings Account
RFC Savings account is ideal for NRI's , if you have returned to India and need an account to maintain your funds in foreign currency.
Currency options: USD, GBP EUR, CAD & AUD.
You can remit funds in any convertible currency; the funds will be converted to the above currencies based on your choice.
Balances & Interest earned is fully repatriable
source:https://www.sc.com/in/nri/save.html
sanjay
(Querist) 25 March 2014
Presently I am a British Citizen of indian origin (without OCI registration) and my son is born in U.K and by birth he is British Citizen.
1)Can my son hold or purchase commercial property in India.
2)Can my son open saving account in india for indian rupees in any indian nationalized bank.
3)Can my son earn interst in bank account in India not declaring it in UK.
R.V.RAO
(Expert) 25 March 2014
1.)your son being a british citizen by birth is a foreign national. so he can own property, when he was a resident in India or inherited from a person who was a resident in India.
another alternative for your son (foreign national)to acquiring immovable property in India is that the immov. property is proposed to be acquired by way of a lease for a period not exceeding 5 years or where a person is deemed to be resident in India.
2.) Yes. Foreign nationals resident in India can open and maintain a resident Rupee account in India in terms of Notification No.5/2000-RB dated May 3, 2000 viz., Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time.
3.) As said in item 2 above, SINCE a bank account can be opened IN INDIA when he is resident in india , interest as well can be earned on same.
declaring the indian bank (interest earned in india) in UK or not depends on local UK laws.
presently US insist that global income should be declared by their residents.
in india also a resident is liable to tax on global income.
R.V.RAO
(Expert) 25 March 2014
Thanks.sri rajendra goyal ji.
uttamtibrewal@yahoo.com
(Expert) 26 May 2014
dear Sir..
yes you son can purchase land in India as well open saving account...
for any help contact me
