• Buying property in Mother's name

I am an NRI. I m looking to buy a BDA property in bangalore. Since I m not in India at the moment, I m planning to buy the property in my mother's name and I will be transferring the fund from my NRE bank account. I would like to know if there are any complications in doing so. Will this be considered a Binami property if I buy it on mother's name and transfer funds from my bank account?
Asked 5 years ago in Property Law
Religion: Hindu

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28 Answers

Even directly you can buy constructed property on your name there is no issue and pay the amount to Builder. Or If so you want to purchase on your mother's name that can also be done by paying few tax amount for transfer NRI account to Indian account if you don't have any siblings. 

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

If you don't possess any foreign passport then you can buy this property in your own through your mother on the basis of a POA.

Now if you want to purchase this in the benam of your mother then there is nothing to think much except to send your money from abroad. 

There is no restriction in sending money from NRE account. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

It is not benami  property 

 

2) You can purchase property in mother name 

 

3) in alternative you can execute specific POA in favour of mother to buy property in your name 

 

4) POA should be attested before Indian consulate 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

You can buy property in mother name 

 

2) transfer funds to her account 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

Yes it is legal. 

Please use foreign inward remittance transfer policy while transferring funds from your NRE accounts to your mother's account or paying it directly to seller. 

Please share cost of property or funds intended to be transferred. 

There are uniform deductions of TDS  upon the shedule of cost  property payments made by the buyer , is a mandatory provisions in IT Act and T P Act.

You need not to pay tax again to Indian Government if paid in your origin country by producing copy and annexing the same to show the Indian Competent Authorities tax paid and income Tax returns filed in the Country you have claimed the Citizenship. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Preferably mothers account and then BDA for authenticity and clear of benami transactions. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Property will be benami but with valid purchase and title.

No tax on purchase of property, only 1% tds if sale amount exceeds 50 lacs rs.

Transfer in mother account than mother will pay through cheque or NEFT or DD.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

If you are paying already tax in respective earning country than no need to pay in India. 

 

India has signed the Double Taxation Avoidance Agreement with 85 other countries. From which country you are going to depend in that particular listed. 

 

You can transferred money to NRE Account which free of Tax. But to purchase on your mother's name I will say think twice.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Cost of the property is important to deduct TDS and deposit amount into Government Treasury as per the Income Tax Act. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

From your NRE account to Mother's Account because you are going to purchase on your mother's name so it will be better in Mother's Account and from mother's  account to BDA's Account

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

there is no restrictions, You can purchase property in mother name . 

You can purchase a property in India through a Power of Attorney (POA). However the Power of Attorney must be signed in the presence of 2 witnesses and notarised by the Indian Consulate/Embassy.

 

 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

NRI money transfers to India are tax-free, if not being invested. There is no tax implication for you or for your mother for transferring money from one account to another, as long as your mother does not invest on your behalf. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Its better to transfer to your mother than BDA. This may irregularise the sale.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

if you are purchasing property on your mother name then transfer money to Mother's account. 

if you are purchasing on your name through POA then you can transfer through your NRE account. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. Property purchased in name of Parents /Brothers /Sisters using your funds shall not attract Benami laws.

2. For Mother's Income Tax purpose, transfer money first to Mother's account (does not attract any type of taxes) and Mother pays BDA from her account.

3. However, ALL the siblings shall have EQUAL right on property standing name of Mother, when mother expires. All money transferred in Mother's account would constitute as a Gift /Loan from you, as may be declared by Mother.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

First transfer the money to your mother's account and from that she can pay the BDA

Money transferred by you to your mother will be considered as gift under section 52 of Income tax act

If you directly pay to BDA from your NRE account and buy the property in name of your mother then it will be hit by benami law 

However I will have to check if buying property in name of mother is included in benami transactions 

I will check and get back 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Transfer funds to mother account 

 

she can then purchase property in her name 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

You can only buy it with the known sources of funds with you and it will not be a benami property. Only other legal heirs can claim it if she has not made any will in this regard. 

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

- As per the notification of RBI  , NRIs can purchase of immovable properties in India without obtaining any specific permission. 

- Further , being an NRI , you are allowed to purchase only residential or commercial property , and cannot purchase any agricultural land or plantation property. 

- Hence, even you can purchase in your name as well after investing fund from the NRE bank account , and this account is tax free, and hence the purchase property from the NRE account is also tax free. 

- Further, you can also purchase the property in your mothers name also, and can transfer from your directly via online .

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You can directly send the money to the acc. Of BDA

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

No it won't be a benami property as she is your mother and the money has been paid through online account which is traceable.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

You can purchase the property in her name. Yes it is legal to buy property in anyone's name as long as the source of money is legal.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

You may do it both ways. Both are legal ways.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Question is not about transfer of funds, it can be considered as gift to your mother, however please be aware that the property shall be your mother's own and absolute property if you are buying it on her name.

Instead you can give her a power of attorney deed executed and duly notarized by a notary of that country authorising her to buy the property on your name on your behalf 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

There is no legal infirmity in buying the property by your mother ion her name using the funds you have sent for this purpose.

There is no tax implication on this since you have already paid the taxes on this money in that country.

 

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

You may have to transfer the funds to your mother name who in turn will make the payment to the authorities concerned towards sale consideration for purchase of this property

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Dear Sir,

The said property will not be the benami property once the sale purchase is done in the name of close relatives. While transfer of funds the charges and law will be applicable as per FEMA. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

1. You can purchase the property on your mother's name without any complications.

2. No tax will be applicable in India if you have already paid taxes in foriegn country.

3. You should transfer the funds to your mother's account then she should pay for purchase of property.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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