• Sale of house by PIO inherited from PIO

My uncle  and  her  two  daughters (  PIO  / American  Citizens   )  have  inherited  a  house 
( constructed  in  1984 in  Kolkata  from  own  sources )  owned  by  my deceased  aunt  ( PIO / American  Citizen  died  in  September 2014 ) . Now  they  want  to  sell  the  house for  which  prior  approval  of RBI  is  required .  I   (  resident  Indian ) am  their  constituted  Power  of Attorney  Holder  What  will  be  the  broad  format  of  the  application (  any  specified  form ? ) and  what  documents  should  be  enclosed  ?
Asked 1 year ago in Property Law from Kolkata, West Bengal
Religion: Hindu
The PIO Card holder does not require any permission from RBI to sell his property.
So you as a constituted attorney can proceed to sell the property at ease. RBI permission is required only if the PIO sells the property to PIO only , not if he sells to an INDIAN resident or NRI.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
PIO can sell property in India to a person resident in India or an NRI. In case a PIO wants to sell to another PIO, he will need to get prior approval from RBI.PIO can transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India, who is a citizen of India or to a Person of Indian Origin resident outside India.A Non Resident is liable to pay tax on the gains out of sell of inherited properties. The purchase price for calculation of capital gains will be the purchase price paid by the person who bequeathed the property.Selling of immovable property by a Non Resident Indian is taxable under the income tax under Chapter XII-A of the Income Tax Act, more specifically under section 115E of the Income Tax Act 1961.Though inherited property will not be taxed in the hands of non-resident, but one needs to know any income from such property will be taxed if any gains generated out of sell (whether short term or long term gains). Even rental income is subject to applicable TDS.The sale proceeds may be credited to NRO account. 

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.
Refer : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=984&Mode=0#c-10

In your case you can act as a power of attorney for them but must comply with all the acts said above.

Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
1. The format has to be compliant with the Indian law and procedure. It should bear the complete details of the property and also the antecedent title.

2. The title deed of the property and POA in your favour may be enclosed.

3. Get it drafted from your lawyer.
Ashish Davessar
Advocate, Jaipur
18246 Answers
449 Consultations
5.0 on 5.0
1) a PIO can sell property in India to a person resident in India or an NRI. In case a PIO wants to sell to another PIO, he will need to get prior approval from RBI. 

2) for repatriation of sale proceeds it is necessary that amount should not exceed one million per year 

3) you need to furnish documentary evidence of inheritance of immovable property and an undertaking by r emitter and certificate from CA in the format prescribed by CBDT vide circular no 4/2009 
Ajay Sethi
Advocate, Mumbai
23377 Answers
1226 Consultations
5.0 on 5.0
By way of inheritance from any a person resident in India or a person resident
outside India who had acquired such property in accordance with the provisions
of the foreign exchange law in force or FEMA regulations at the time of
acquisition of the property.
A PIO may transfer any immoveable property other than agricultural land /
Plantation property / farm house in India
a) By way of sale to a person resident in India.
b) By way of gift to PIO can sell property in India to   person resident in India who is a citizen of India. 

 PIO can sell property in India to
i) a person resident in India.
ii) an NRI or
iii) a PIO - with the prior approval of Reserve Bank 

If the immovable property was received as inheritance by the NRI/PIO
can he repatriate the sale proceeds?
A.28. Yes, general permission is available to the NRls/PIO to repatriate the sale
proceeds of the immovable property inherited from a person resident in India.
NRls/PIO may repatriate an amount not exceeding USD one million, per financial
year, on production of documentary evidence in support of acquisition /
inheritance of assets, 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. 10/2002 dated October 9,2002. [cf. A P. (DIR
Series) Circular No.56 dated November 26, 2002].
T Kalaiselvan
Advocate, Vellore
14158 Answers
128 Consultations
5.0 on 5.0
1. PIO can sell property in India to
     i) a person resident in India; or
     ii) an NRI; or
     iii) a PIO

2. Prior approval of the Reserve Bank is not necessary for PIO resident in USA.

3. According to Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations 2000 : PIO can transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.

4. No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India


Shivendra Pratap Singh
Advocate, Lucknow
2786 Answers
41 Consultations
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