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Agricultural property inherited by my son but he is NRI


09-Mar-2023 (In Property Law)

As per R.B.I rule PIO/NRI is not supposed to buy agricultural land/farm house in India. Agricultural land is inherited by my son (NRI) up on the death of his grand mother by registered will. The entire consideration of Rs 1,50,000/- for the property was paid by her in 1990 itself & she died in 2001 but she didn’t got registered. My son got it registered in the year 2011 but not bought by him . please clarify whether he can repatriate the sale consideration to abroad or not

Answers (1)

Answer #1
614 votes
Hi
Sale proceeds from Agricultural land cannot be repatriated by an NRI.
the sale proceeds need to be retained in india.
if the sale pertains to non-agricultural land, the procedure is as follows:

Question: If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?
Ans. Yes, general permission is available to the NRIs/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India subject to the following conditions:
(i) The amount should not exceed USD one million, per financial year (ii) This is subject to production of documentary evidence in support of acquisition / inheritance of assets and an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.4/2009 dated June 29, 2009 (iii) In cases of deed of settlement made by either of his parents or a close relative (as defined in section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler (iv) the original deed of settlement and a tax clearance / No Objection Certificate from the Income-Tax Authority should be produced for the remittance (v) Where the remittance as above is made in more than one installment, the remittance of all such installments shall be made through the same Authorised Dealer (vi) In case of a foreign national, sale proceeds can be repatriated if the property is inherited from a person resident outside India with the prior approval of the Reserve Bank. The foreign national has to approach the Reserve Bank with documentary evidence in support of inheritance of the immovable property and the undertaking and the C.A. Certificate mentioned above.

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