Vijay Vaidya (Asst.Professor) 02 January 2011

Ancestral Property Sale By NRI

PLEASE HELP ME OUT

I Am an American Citizen since last 10 years. I was born and brought up in India. I have just applied for OCI i.e.Overseas Indian Certificate which is under process. I am sharing my ancestral property with my brother who is in America. I want to ask whether I can sell and/or give a power of attorney to a trusted friend to sell my share of property in India,while I am in USA and the OCI is under process.? Secondly, If I can sell then what tax amountis to be paid to the GOvernment of India on the spot for the transaction? Can you provide the guideline or thef reference table for the payment of tax on transaction.

Thanking you.

Vijay Vaidya

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9 Replies

(Guest)

you can execute the power of attorney or sale deed before the consulate and send it to india for registration. The money transaction above 1.60 lakhs subject to income tax to the tune of 30%

N.K.Assumi (Advocate) 02 January 2011

In addition to Ganesh, I would also like to add that there isa dire needs to set up Special Tribunal for the Overseas indian to help them in such matters.

Y V Vishweshwar Rao (Advocate ) 02 January 2011

1- It is ancestral Property - not acquired by you - No Capital gain as it is still in Joint possession - You have not yet acquired Exclusive rights -

2- You can execute a Power of attorney for sale of the Property along with your brothers

3- You can settle the value of Your share fro agreed amount with your brother and give GPA to him - he can sell - his share and Your share-

Y V Vishweshwar Rao (Advocate ) 02 January 2011

1- It is ancestral Property - not acquired by you - still in Joint possession - You have not yet acquired Exclusive rights -

2- You can execute a Power of attorney for sale of the Property along with your brothers

3- You can settle the value of Your share fro agreed amount with your brother and give GPA to him - he can sell - his share and Your share-

bhagwat patil (Property due diligence 9422773303) 03 January 2011

POA you can sign the proposal to the consulate of in your town the send the papers to your friends after his acceptance by signing before exe. magistrate it will be complete., ha can use for sale of property. you will have to to pay capital gain tax depending upon the duration of holding, it will be nominal in your case.

Vijay Vaidya (Asst.Professor) 03 January 2011

Thank you Mr. PAtil. Would appreciate if you can bit explain the "proposal to the consulate ", Do you mean it General Power of Attorney?

bhagwat patil (Property due diligence 9422773303) 03 January 2011

yes POA only.

Vijay Vaidya (Asst.Professor) 03 January 2011

Thank you Mr. Patil,

Is it possible that we can notorize the POA and send a copy to the Indian Consulate and then send it to India.OR is it that we need the stamping from the consulate only.