My Mom and Dad jointly bought an apartment in Kolkata many years ago. My Dad passed away few years ago. So my Mom, who is a green card holder and lives with me in the US, wants to sell this property. I'm a US citizen. As far I understand, in absence of my Dad, I become another legal heir of the property. In that case, - 1) what are the documents I need to give to my Mom so that she can single-handedly sell the property? and 2) Does my Mom fall in any special property tax bracket as a green card holder to sell this property? If so, what documents she will need to sell this property? The value of the property is about 50 lakhs INR. Many thanks for your advise in advance.
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1. You can execute and register a POA in favour of your mother so she can represent you in your absence.
2.Since you stay in USA you can give her a USA notarised POA which is to be adjudicated in Collectorate in Kolkata nd on that basis a register sale deed can be made on behalf of both of you in favour of the prospective purchaser.
3.While making such sale deed giving PAN no, has become compulsory as well as giving copy of any photo identity card like passport or voter card.
Hi,
After the death of your father the property should have been transferred in your and mother name. If not that should be first be transferred in her name based on legal hair certificate.
If the property is in both of yours name then give a power of attorney certified by the Indian Consulate in US to sign sale document in your behalf and collect the proceeds.
1) If you mother stay with you in USA as of now than you provide POA on her name get signed by Indian Embassy in USA. If your mother alone is coming to India for purpose of sale fo property.
2) When a house property is sold, after a period of 2 years (Reduced from 3 years to 2 years in Budget 2017) from the date it was owned – there is a long term capital gain. In case it held for 2 years or less – there is a short term capital gain.
Tax implications for NRIs are also applicable in the case of inheritance. In case the property has been inherited, remember to consider the date of purchase of the original owner for calculating whether it’s a long term or a short term capital gain. In such a case the cost of the property shall be the cost to the previous owner.
How much tax is payable?
Long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.
TDS Deductible
When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.
How to save tax on capital gains?
NRIs are allowed to claim exemptions under section 54 and Section 54EC on long term capital gains from sale of house property in India.
Hello sir , first you both have to obtain legal heir certificate from court . After which the property shall be transferd upon both of you ..afterwards you can proceed with the sale deed as per your own wish ..
Dear Sir,
You have give Power of authority sell her property in India, besides the following documents
Passport
An NRI, who want to sell a property in India, should hold a passport; not necessarily an Indian passport. This will serve as the identity proof of the person, involved in the transaction.
For an Overseas Citizen of India (OCI) and a Person of Indian Origin (PIO), a passport serves the same purpose.
PAN Card
A number of NRIs do not pay taxes in India, as their income is taxable in the countries they stay. However, experts believe NRIs should apply for a PAN (Permanent Account Number) card here when they intend to buy a property in India, as it will be required to apply for a tax exemption certificate as after the sale of the property. PAN numbers are given out to NRIs with a foreign communication address to select countries.
Also Read: An NRI Without A PAN? You Won't Have To Pay Higher Taxes Now
Tax Returns
If an NRI has been holding a property for a certain period and earning money from it (by renting it out, etc), the transaction becomes taxable. In that case, tax returns for the whole property-ownership period should also be kept ready.
Address Proof
An NRI has to give documents in support of his address in India as well as abroad. This may include a ration card, telephone or electricity bills, life insurance policy statements, etc. Same set of papers are also required as the proof of residence abroad.
You can execute SPOA in favour of mother to sell the property
2) carry out mutation of property in joint names ie in name of mother and you
3) I presume you don not have any siblings
Hi
If the property it is in the joint names of your (Late) Father and your mother, then you can be a consenting party to the conveyance deed.
Assuming that the same was their self acquired property.
If it is their self acquired, then if you give your "consent / no objection" for the same it is okay.
However, if the purchaser asks for any specific confirmation from you, you can give it.
As far as applicability of tax, if your mother is a senior citizen, they have certain benefits pertaining to Income Tax.
Case on hand is sale of immovable property, wherein, provision called "Capital Gain or Capital Loss" will be attracted. One Time.
Other details can be obtained from a Chartered Accountant.
To keep the record plain and simple, if you are party to the sale as a consenting party NO PROBLEM for one and all.
Good Luck
As on date, you and your mother are stakeholders in this property, being the only Legal heirs to your father.
Relinquish your Share in this property in the favor of your mother so that she may sell of the property single handedly.
1. For registering sale deed, she shall have to mention her PAN Card No.
2. Make sure that she has the PAN Card and if she does not have then she should apply for and avail it.
3. Thereafter you can execute a POA in favour of your mother authorising her to sell your share of the property.
4. The said POA can be arranged to be sent by your lawyer in India and got it notarised before the appropriate officer of local Indian Consulate after appending your signature thereupon.
5. Based on your above POA, your mother will be able to sell the said property after coming to India.
6. If the buyer is not known to you and not sure of the legal heirs of your father, he can ask for a legal heir certificate from your mother which she can obtain from Kolkata Corporation through her ward counselor.
Since the property left behind by your father , his share in the property shall equally devolve on all his legal heirs i.e., you and your mother.
You can execute a power of attorney deed in favor of your mother duly notarised by a notary in that country and send it to your mother in India, who shall register the POA deed within the local sub-registrar office.
Besides the original registered sale deed, copies of her passport, PAN card,and any other relevant papers related to the property to be carried by her while executing a registered sale deed in favor of the buyer in India.
1. You will have to execute a relinquishment deed so that you may give your mother the right to sell your share of the property.
Regards
