Nri and agricultural land inheritance

sasi (Querist) 19 October 2015 This query is : Resolved
Sir/Madam,

I am PIO card holder, born in India and currently hold US Citizenship (NRI), but settled in India for good. We are from Agricultural family , owns quite a bit of farming land and most of them was self acquired by my father. He kept half of the land in my mothers name and that has become self acquired property by her own. My father died last year and in the process of dividing the property. We are only two sons and no daughters and the property division is very amicable within us. We are planning to do partition deed for my fathers property (as he already died) and gift settlement deed (settlement-familiy members) for my mothers property. This is in state of TamilNadu and I believe mothers property always passes like a gift settlement deed when they alive.

Questions:

Being a NRI, do I need to do any other legal documents?.
Will the property received from my father and mother considered has inheritance?
What is the difference b/w gift deed by someone vs gift settlement deed by parents?

Thanks
Shashi.

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P. Venu

(Expert) 20 October 2015
There are no special rules for a NRI while inheriting property. A gift deed is absolute where as a gift settlement deed takes effect in accordance with the terms therein.

sasi (Querist) 20 October 2015
Will the property received from my father and mother considered has inheritance even one of them alive?

P. Venu

(Expert) 21 October 2015
There is no question of inheritance from father or mother when they are alive. They can only transfer property through the due process of law.

sasi (Querist) 21 October 2015
RBI website says,

Can a NRI/PIO acquire immovable property in India by way of gift? Cana foreign national acquire immovable property in India by way of gift?
Ans. (a) Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from
i) a person resident in India; or
ii) an NRI; or
iii) a PIO.
However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.

Does it means I cannot get my mothers property transferred while she is alive?.

Thanks
Sasi.

K.S.Srinivas (Expert) 21 October 2015
You may be having dual citizenship. Immovable property (agricultural land) can be gifted.

sasi (Querist) 21 October 2015
Thanks for your replies. Yes, I have OCI and settled (settling) in india.

Can you please help me to understand this statement.

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However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
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I believe transfer of assets from the parents is inheritances than a mere gift.

--Shashi

P. Venu

(Expert) 22 October 2015
"Agricultural land/farm house in India cannot be acquired by way of gift." What is the source of your information?

sasi (Querist) 30 October 2015
"Agricultural land/farm house in India cannot be acquired by way of gift." What is the source of your information? Ans: It is in RBI website Q&A section.

Thanks
Shashi