Agreement should be in your name and that of your parents
since money for purchase is being paid by you it is better your name is reflected in sale deed
Hello, we are buying a property in India so I need suggestions on what would be better in future to have names in the agreement? Option 1: Mom & Dad Option 2: Mom, Dad & me (son) Context: I work and live in US (H1b-worker), recently visiting India to make the purchase. Also, we have transferred all the amount from USD to INR for the property deal, so would it be ideal to have agreement only in the name of mom and dad? Thank you
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Agreement should be in your name and that of your parents
since money for purchase is being paid by you it is better your name is reflected in sale deed
It is purely matter of you choice. But it safer to purchase property in the names of all three as mom and dad cannot forced to transfer property without consent of all.
If you would like to purchase the immovable property for your future in India, you may better purchase it on your name alone so that you don't have to face any litigation in future if the property is bought on your parents name and not able to acquire it fully after their lifetime.
If you don't have any siblings then you can purchase it on joint names of your parents and can even include your name in it.
If all are co owner then all will be included in the said agreement. If not possible the power of attorney can be given for person who can't physicality come
It really depends who among you is making the payment and has contributed funds for the purchase
If it's you then you can have your name added and your parents name can be there as part of a family arrangement
It would be prudent to mention in the sale deed as to who has contributed the funds
In absence of that it will be presumed that all 2 or 3 (depending on who all are added) have contributed equally
You have to keep in mind that if 2 or 3 names are added then on demise of any one, his share will go to his or her respective legal heirs and not to the survivor purchasers
This is known as per capit distribution
Whether you want to make your parents as purchasers or also include your name, depends on what is the exact arrangement between you people
Also if only your parents names are added and the funds are contributed by you then such a transaction may NOT be hit by the Benami act
Option 2 , you can adopt , if going to purchase an agriculture land.
- Otherwise , purchase in your name only to remove any future hurdles .
What are the tax implications when I transfer my money from US to my account in India for property purchase? Also, By adding my name in the agreement benefit in any other way in future?
You have to declare the purchase of property in your income tax returns
you are transferring funds for purchase of property hence your name should be reflected as one of purchasers in sale deed
There is no tax implication to the buyer for purchasing t a property in India.
They have to declare the source of income for purchase of the property.
For the money you propose to transfer has already suffered tax at source in USA, hence the transfer of money from that country to India will not attract any tax here since it is a legal transfer of legl money.
Dear Client,
Tax will be implicated based on the amount you are transferring to purchase and you will be the co owner of this property and it will avoid any further costs to you in future.