Settlement deed in favour of nri for agriculture land
Lakshmydevi
(Querist) 04 June 2014
This query is : Resolved
I have bought about 25 cents of agricultural land about 20 kms away from Chennai which is a part of Kanchipuram district. I am a senior citizen and would like to leave a settlement deed in favour of my NRI Daughter(42 years.) Please advise how I should go about so that there is no hassle for my daughter for taking possession and do any development as she deems fit.
ajay sethi
(Expert) 05 June 2014
contact a local lawyer . get gift deed drfated by lawyer . have it duly stamped and regd
Guest
(Expert) 05 June 2014
For the Settlement Deed the Stamp Duty is very very Lesser than Gift Deed.As you have mentioned Settlement Deed would be the best option cost wise also.More over since your daughter is an NRI her presence is not required while your self executing a Settlement Deed in her Favour.You could very well get the Settlement Deed drafted thro some Senior Document Writer at Registrar Office it self providing all details or xerox copy of documents.Carry a maximum of Rs.25000/- in hand but all expenses for Registration,drafting,stampduty etc would be definitely lesser than that.Take two witnesses reliable with you.
Lakshmydevi
(Querist) 05 June 2014
I got a different information that I cnnot give agricultureland to NRI either as gift or settlement. This is confusing . Please see the The following link
http://newcenturyindianlaw.blogspot.in/2011/07/nri-property-issues.html
says:
NRIs and PIOs can freely acquire immovable property by way of gift either from i) a person resident in India; or ii) an NRI; or iii) a PIO. However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
Please clarify/
Thanks
Guest
(Expert) 05 June 2014
Please dont get confused with Settlement Deed and Gift Deed.As per your Title I am discussing only about Settlement Deed.First in Settlement Deed No Money Transaction is involved.In settlement Deed the Presence of beneficiary is not required.The same could be confirmed With the Office of IG of Registrations Tamilnadu Over Phone 044 24640160 or 044 24643753 between 10 a.m and 4 p.m. tomorrow or during working days.
T. Kalaiselvan, Advocate
(Expert) 06 June 2014
Section 6(3)(i) of FEMA Act states that :
Without prejudice to the generality of the provisions of sub section (2), the Reserve Bank may, by regulations, prohibit, restrict or regulate the following:
acquisition or transfer of immovable property in India, other than a lease not exceeding five years, by a person resident outside India;
Acquiring immovable property by Gift, Settlement etc.
NRIs and PIOs can freely acquire immovable property by way of gift either from i) a person resident in India; or ii) an NRI; or iii) a PIO. However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
The author is right that she cannot transfer her agricultural property to her NRI daughter either by a settlement Deed or a gift deed.
However, there is no mention about the property being bequeathed through a Will. So clarify and then proceed.
Raj Kumar Makkad
(Expert) 09 June 2014
I do endorse the advice of expert T.Kalaiselvan.
