• How can a foreign citizen gift inherited property in India to a resident Indian under FEMA

I am helping a relative who is a Bangladeshi citizen living outside India. She inherited 1/4 share of a residential property in India from her father, who was an Indian resident at the time of death. She is not seeking PIO status or other Indian documents and wants to gift the property in her current capacity.

The local Sub-Registrar office seems unsure about the process for registering a gift deed involving a foreign citizen.

She also wrote an email to RBI and received a response, which indicates that RBI approval does not appear to be necessary for this inheritance-based gift.

1. Ownership/Acquisition – Section 6(5) of FEMA, 1999:

A person resident outside India (including a foreign citizen) may hold, own, or inherit property in India if the property was:
 - Acquired or owned by them while they were a resident in India, or
 - Inherited from a person who was resident in India.

Implication for this Case:
 - She inherited 1/4 share of the property from her father, who was an Indian resident at the time of his death. Therefore, she is legally allowed to own the property under FEMA.


2. Transfer/Gifting – Rule 30(2) of FEM(NDI) Rules, 2019:

A person resident outside India (including a foreign citizen) who has acquired property legally under FEMA may transfer or gift the property to a person resident in India, provided:
 - The transaction is executed through proper banking channels for any payments (like stamp duty/registration fees), and
 - The recipient is legally allowed to hold property in India under FEMA.

Implication for this Case: 
 - She can gift her 1/4 share to a resident Indian. No RBI approval is required, because the property is inherited from an Indian resident.

My Questions:

1. What is the proper procedure for registering the gift deed at the Sub-Registrar office in this scenario?
2 Can the deed be executed via a Power of Attorney, since she lives abroad? If yes, what's the process.
3. What documents are needed for both FEMA compliance and registration?
4. Is any additional RBI approval needed in this case?
Asked 2 months ago in Property Law
Religion: Hindu

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9 Answers

she can execute specific POA in favour of family member. POA should be attested before indian consulate 

 

2) it is not necessary to register POA if attested before indian consulate 

 

3) on basis of POA family member can execute gift deed 

 

4) no RBI approval is necessary 

Ajay Sethi
Advocate, Mumbai
99755 Answers
8141 Consultations

A foreign citizen can gift an inherited Indian property to an Indian resident without RBI approval. The transfer must be done through a registered gift deed, which can be executed using a Power of Attorney (PoA) if the owner is abroad.

  • RBI Approval: No prior RBI approval is needed. Your relative can gift the property because she inherited it from a person who was resident in India, which is permitted under FEMA.​

  • Power of Attorney (PoA): Your relative can authorize someone in India to execute the gift deed via a PoA.​

    1. She must sign the PoA at the Indian Embassy or Consulate in Bangladesh.

    2. The attested PoA must then be stamped and registered in India to be legally valid for the property transaction.

  • Gift Deed Registration:

    1. Draft a gift deed stating the transfer is without monetary consideration.​

    2. The PoA holder will sign the deed on her behalf.

    3. Register the deed at the local Sub-Registrar's office after paying the applicable stamp duty.​

  • Key Documents: You will need the executed Gift Deed, the attested and stamped PoA, proof of inheritance (father's death certificate, will, etc.), and ID/address proofs for all parties involved.​

Shubham Goyal
Advocate, Delhi
2054 Answers
14 Consultations

If the subregistrar is not registering after showing this legal provision you can file an complaint about the same to the registrar and same will be heard 

Prashant Nayak
Advocate, Mumbai
34494 Answers
248 Consultations

- As per law , after getting that property , it will considered as self acquired property , and she has her legal right to gift that property to anyone , even she is not foreign national 

1. She can execute SPA/POA in favor of any relative /nearest one for registering gift deed on her behalf. 

2. The said POA should notarized as per rule of Bangladesh and attested from the consulate of India. 

3. Address proof or ID of the POA holder in India. 

4. No 

Mohammed Shahzad
Advocate, Delhi
15796 Answers
242 Consultations

The property was legally inherited under FEMA 6(5).

Rule 30(2) of FEM (Non-Debt Instruments) Rules, 2019 expressly permits a non-resident (including foreign citizen) to transfer or gift such property to a resident Indian without prior approval, provided the transfer is compliant with local laws and proper documentation.

Only if the gift/transfer were to another non-resident (or involving agricultural/plantation property) would prior RBI permission be required.

1. Draft Gift Deed & POA Donor Mention FEMA compliance

2 Execute POA abroad Donor Attested by Indian Consulate / Apostilled

3 Adjudicate POA in India Attorney Within 3 months of arrival

4 Pay Stamp Duty Attorney As per State law

5 Register Gift Deed Attorney & Donee At Sub-Registrar with witnesses

T Kalaiselvan
Advocate, Vellore
89957 Answers
2490 Consultations

Dear Client, in your situation where the marriage has already been declared null and void by the competent court, but the SC/ST (Prevention of Atrocities) Act case is still pending, extreme caution must be exercised before entering into any settlement agreement. Since SC/ST Act offences are criminal in nature and considered against the society, they are generally non-compoundable, meaning a private settlement between parties does not automatically end the criminal proceedings — only the court has the authority to quash the case under Section 482 CrPC (inherent powers of the High Court) after ensuring that the settlement is genuine and voluntary. You can, however, prepare a Memorandum of Settlement or Compromise Agreement stating that both parties have resolved all disputes voluntarily, that the complainant and witnesses (LW1, LW2, LW3) do not wish to pursue the case, and that a one-time settlement amount has been accepted as full and final for all claims, including maintenance and alimony, with no future litigation intended. Key points to include are: (1) reference to the prior nullity order and its date; (2) names and addresses of both parties; (3) settlement terms and amount; (4) declaration of voluntary consent; (5) confirmation of no further claims or complaints; and (6) signatures of both parties and independent witnesses. Registration is not mandatory, but recommended for evidentiary value. If you choose to register, execute it on non-judicial stamp paper of proper value and register at the local Sub-Registrar Office under the Registration Act, 1908 by submitting ID proofs, photographs, and signatures of both parties and witnesses. Once signed and registered, you can file a joint petition before the High Court under Section 482 CrPC seeking quashing of the pending SC/ST case based on the compromise. I hope this answer helps. For any more queries, do not hesitate to contact us.

 

Anik Miu
Advocate, Bangalore
11006 Answers
125 Consultations

Your relative can legally gift her inherited 1/4 share of the residential property in India, and no RBI approval is required since she inherited it from an Indian resident. The transaction is valid under Section 6(5) of FEMA, 1999 and Rule 30(2) of the FEM (Non-Debt Instruments) Rules, 2019, which specifically allow a foreign citizen to own and transfer inherited property to a resident Indian.

Here’s a clear, step-by-step outline of how to complete the process:

Your relative can prepare a gift deed stating that she inherited the property from her father, an Indian resident at the time of death, and that she wishes to voluntarily gift her 1/4 share to the donee (a resident Indian). The deed should mention that the transfer is made out of love and affection and without monetary consideration.

Since she resides abroad, she can authorize a trusted representative in India to execute and register the gift deed on her behalf. For this, she needs to execute a Special Power of Attorney (POA). The POA should specify the property details, empower the attorney to sign and register the gift deed, and include the names of both the donor and the donee. The POA must be signed before a Notary Public or Indian Consulate in the country where she resides, and then sent to India. Once received, it must be adjudicated (stamped) at the District Registrar’s Office within three months of arrival, as required by Indian law.

After the POA is adjudicated, the attorney can sign and present the gift deed for registration before the Sub-Registrar in India. Both the attorney (representing your relative) and the donee must appear in person with two witnesses for registration. The usual stamp duty and registration fees will apply based on the property’s market value and location.

For the transaction, the following documents will be required:

  • Passport copy of the donor (your relative) showing her current nationality.

  • Proof of foreign residence (utility bill or ID).

  • Legal heir or succession certificate confirming her inheritance share.

  • The father’s death certificate and the title documents of the property.

  • The notarized and adjudicated Power of Attorney.

  • PAN card and Aadhaar of the donee.

  • Proof of payment for stamp duty and registration fee.

The donee must ensure all payments, including stamp duty and registration charges, are made through Indian banking channels. It’s also advisable to attach a brief FEMA declaration within the gift deed, stating that the donor inherited the property from an Indian resident and that the transfer is permissible under FEMA and Rule 30(2) of the NDI Rules.

No separate or additional RBI approval is required in this case. The RBI’s own clarification confirms that such gifts are permitted when the property was acquired through inheritance. Once the registration is completed, the donee becomes the legal owner of your relative’s 1/4 share, and the transaction stands fully compliant with FEMA and registration laws.

In short, she can execute the gift through a Power of Attorney attested abroad and adjudicated in India, provide supporting documents showing her inheritance, and register the deed before the Sub-Registrar. This process is sufficient and fully legal without any further RBI permission.

Yuganshu Sharma
Advocate, Delhi
945 Answers
2 Consultations

1. She she is gifting her inherited property , there is no restriction on this and can be done with an help of an advocate.

2. Yes the POA after Adjudication can be acted upon and the constituted attorney can do the same.

3. On the basis of necessary identity documents the same can be done.

4. No.

Devajyoti Barman
Advocate, Kolkata
23647 Answers
537 Consultations

Your relative can gift her inherited 1/4 share to an Indian resident without RBI approval under Section 6(5) FEMA and Rule 30(2) of FEM (NDI) Rules 2019.
She may execute the gift deed via a Power of Attorney attested by the Indian Consulate abroad and adjudicated in India.
For registration: submit title proof, inheritance proof, passport, address proof, FEMA declaration, PAN of donee, photos, and adjudicated POA at the Sub-Registrar’s office where the property is located.

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

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