• Sale of property by foreign national

Property - a land and building was purchased by a foreign national in 2006 and is no more now.There is no will left behind by the foreigner. The children who are foreign nationals wants to sell the property now to Indian nationals. They have a legal heir certificate. Can they sell the property?? What are the tax implications to the buyer who is Indian national??
Asked 7 years ago in Property Law
Religion: Hindu

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9 Answers

This is my response to you:

1. The children can easily sell the property;

2. There are some rules, which you can find on this link: https://www.mea.gov.in/property-related-matters-of-nri-oci.htm

3. There might be some tax implications on the foreign nationals;

4. The buyer may not face extra tax implications, stamp duty and registration charges;

5. Rest, you can take assistance of a CA to understand the capital gains statement.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

Apply for and obtain letters of administration from district court as deceased died intestate

2) legal heir certificate woukd not be sufficient

3) after obtaining LA apply for mutation of property in name of legal heirs

4) In case of sale of property by NRI, it is mandatory for buyer to deduct 20.66% TDS on the sale price of the property if capital gain is long term capital gain. In case of short term capital gain, TDS will be 33.99% irrespective of income tax slab of NRI

5) you have to deduct 20.66 percent TDS on sale price even if value of property is lss than Rs 50 lakhs

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

Hi,

The children of deceased may sell the property. The buyer may have to pay the taxes.

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.then how can its possible that foreign national purchased a property in india.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Hello,

Yes they can sell the property in India.

exact tax implications depends upon the cost of the property.

Would advise you to consult some local CA.

However, there is no legal impediment in purchasing the same.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Yes they can sale the property based on legal heir certificate. They can mutuate the property in there name based on certificate. Further it can be sold the buyer shall deduct the TDS from the amount of consideration.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

They need to get the succession certificate from court to prove their ownership. Tax will be paid in india and they can claim double taxation relief.

Abhilasha Wanmali
Advocate, Nagpur
1021 Answers
1 Consultation

Hi

1) The children of foreign nationals are eligible to sell the property and the Indian buyer can purchase the same.

2) The BUYER should pay the seller in Indian Rupees only.

3) The buyer should deduct TDS of 1% of sale consideration (Under Section 194IA of Income Tax Act), if the sale consideration is above Rs50Lakhs and remit the same to Indian government prior to registration of sale deed.

4) The buyer should also ensure to have the legal heir certificate (if issued by foreign court) to be ratified by an Indian court . this is to avoid unnecessary litigation at a later date.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

Upon proving themselves as the legal heirs or successors in interest, the successors of the deceased owner of foreign national, can sell the property to any Indian prospective buyer under normal procedures.

There is no tax implication on the buyer while buying this property except he has to deduct tax at source and remit it to the government account properly.

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

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