OCI sending money to parent to buy agri land and once inherited repatriation after selling 3 years
I am an OCI. Can I send money to my mother (age 72) who is Indian citizen living in India now so that she can buy agricultural land and when she passes away I will inherit the agricultural land? I am one of her 3 children. My other two brothers live in India as Indian Citizens.
I know that there are risks in the sense that brothers could create issue and the land inheritance to me can be held up due to that reason. But lets say that brothers don't create issue and agree that I should be legal inherited owner of the agricultural land for which I paid the money, in this case do you see any issues?
So the land becomes inherited by me as an OCI and as long as I keep it for more than 3 years, I read that there is no short term or long term capital gain tax on agricultural land so if I sell it another Indian Citizen, then I can repatriate the money via NRO account, as long as limit of $1 million per year, Tax form are filled etc..
Is it correct I will not have to pay capital gain tax on the inherited agri land? and there is no TSD (tax at source deduction) for inherited agri land.
What issues do you see here? Do lot of OCI/NRI people do this ? Thanks for your answers.
Asked 6 years ago in Property Law
Religion: Hindu