368. Buy property in Hyderabad, India
Q. Dear Sir,
I am a NRI working in United Arab Emirates and I have Canadian Permamnent resident card. I would like to buy a property in
Hyderabad India. What are steps to be followed before buying the property?
My wife is a Canadian citizen and holds a OCI card. Can she buy the property instead of me? what documents need to be checked
I will be grateful if you help me in this regard. I do not any idea. My people are telling many stories?
I need a truthful guidance
Your early reply will be highly appreciated.
A. Your wife or anyone else you designate can purchase property for you in Hyderabad, India. Persons of Indian origin can
purchase property in India even if they do not have OCI. Your wife can purchase
property jointly with you, in her name only or in your name if that is what you
desire. For her to purchase property in your name, you will have to give her a
power of attorney so she can act on your behalf.
There is information on property purchase in India already on this website. My
book THE NRI GUIDE 2012/2013 covers topics on purchasing property in India
Purchasing Property in India, Buying land in India, Land ownership record check,
How to obtain encumbrance certificate, Limitations of Encumbrance Certificates,
Release Certificate for a property, Get a loan to purchase property, Consider Ready
to Move in Property, Advantages of Buying Ready to Move in Homes, Precautions
when buying property in India, Title Report – When purchasing property,
Purchasing Property under Construction . . . If you have the book check from page
144 onwards for property related information.
369. Converting resident bank accounts to non resident bank accounts
Your website "www.nriinformation.com" is good. However, it does not answer the following question. We need authentic information on the same.
A person has gone abroad on a work visa for a particular period of about 3 or more years, and is now designated as NRI. The person has one to two
previous savings bank accounts operating since several years before becoming NRI. The person has been filing Income Tax retuns regularly since
several years. The savings bank accounts remain as it is. i.e. before going abroad the bank accounts were not converted to NRO or NRE or other
When transfering foreign exchange to India, as is done by most people, the same is officially sent to the previous savings bank accounts. Is it ok?
Please note that though the person earns income in India from dividends, interest, etc., in bank accounts, yet the same is very less, and is within
the Taxable limit.
Please give authentic information in the matter.
A. From what I understand by reading your emailed question:
When a person goes abroad to work, his status is NRI (non-resident India). Any local resident bank accounts in this case,
must be converted to Non resident bank accounts. A person who goes abroad
for work, cannot legally keep resident bank accounts in India. They must
notify their bank of their NRI status and the bank must close the resident
accounts and open non-resident accounts for the account holder.
If the bank knows that the account holder is a NRI and still continues to allow
resident accounts to exist, they are breaking the law.
If the account holder fails to notify his/her bank of the change in their
residential status. Then they are breaking the law.
Filling a regular tax return in India does not exempt a NRI from following the
existing laws that apply.
When transferring money from abroad, it can be transferred to any legally
held bank account. A local resident, who receives money from abroad, will naturally get the money in his resident bank
account, as local residents cannot hold Non-resident accounts. However, when a Non-residents transfers money to himself, he
needs to transfer the money to his/her non-resident account in India.
I suggest you contact your bank manager in India and clarify with him what 'authentic information' applies in your case.
370. Foreign born minor children and Indian citizenship
Q: Dear Sir/Madam,
One of my friend Indian parents has delivered a baby in Australia and the baby now holds an Australian citizen since both parents
has Australian PR since 1 year.
Parents are getting separated and my friend(mother) came to home country india along with the child.
Please guide me how to get Indian citizenship or permanent stay in India for the minor child. Both parents are from Indian Origin
but getting to
A. Indian parents who reside abroad, must register the birth of a new born child to the nearest Indian consulate and NOT apply for
a passport of the foreign country where the child was born. This helps in getting an Indian passport for the new born child.
Since your friend has already left Australia and is now in India, the question that comes to mind is, was the birth of the child
registered with the Indian Consulate in Australia? Did the child travel to India on an Australian passport?
Birth registration of the child, if not already done should be done immediately. This will help ensure that the child can get Indian
citizenship when reaching the age of majority. I am not sure on what type of visa the baby traveled to India, you should let your
friend know that she must ensure that the legality of the child's visa in India stays valid, to avoid complications at a later stage. I
suggest your friend seek professional help in sorting this matter out.
371. OCI holders not exempt from paying taxes in India
Q: I work for a multinational company that says that they have to pay taxes to the govt. of India if their US employees work in India for more than
Is this true even if the employees have an OCI card? Thanks in advance for your response.
A. While other US employees of your company would need a valid work visa to work in India, your OCI status allows you to work in
India. However having OCI status does NOT provide exemption from paying taxes due to the Indian Govt.
372. Immediate transfer of property from father to son
I am an Australian Citizen (acquired sep 2010) with OCI-Overseas citizen of India (acquired July 2011).
My father is an Indian Citizen and currently he lives in Delhi. He already willed his property to me.
He wants to legally transfer his property on my name permanently without creating any scene for litigation from anyone else.
Can I be legally transferred his property being on OCI? If not, what's the easiest alternate way of transferring it on my name apart from "will" and
the cost involved.
A. Your father can transfer the property to you legally if he so desires.
Property transfer can be done by way of:
2. Relinquishment Deed
Gift and Relinquishment Deed must be registered to be valid.
When property is gifted to a relative, even though there is no payment made for the property, stamp duty has to be paid.
When property is gifted, there is no sale consideration involved as no money changes hands. The amount of stamp duty payable in
such cases is calculated based on the Circle rate fixed by the government for the area where the property is located. Circle rates
are discussed in my book 'THE NRI GUIDE 2012/2013' from page number 164.
OCI status makes no difference when it comes to transferring property in India between father and son.
There are cases where people simply get a 'No Objection Certificate' (NOC) from relatives. Such an NOC can be challenged in a
court of law and voided.
The NOC document should be signed in front of a Notary Public. In case of a person residing abroad, they should sign the NOC in
front of an Indian consulate official and get the appropriate stamp on the document.
Informing educating and connecting Indians across the globe . . . by Virendar Chand
NriInformation Questions &Answers
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