The ability of Non-Resident Indians (NRIs) to acquire or dispose of residential property through gifts is subject to the laws and regulations of the country in which the property is located. Additionally, the regulations may vary based on the citizenship and residency status of the NRI.
In India, for example, NRIs are generally allowed to acquire residential property by way of gift. The same is true for the disposal of residential property through a gift. However, there are certain conditions and restrictions imposed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA) that need to be considered.
Here are some key points:
Acquisition of Property by Gift:
- NRIs can receive residential property in India as a gift from a person resident in India or from another NRI.
- There are no specific restrictions on the number of properties an NRI can receive as gifts.
Disposal of Property by Gift:
- NRIs can gift residential property in India to a person resident in India or another NRI.
- There are no specific restrictions on the number of properties an NRI can gift.
Conditions and Restrictions:
- NRIs must adhere to the guidelines and conditions set by the RBI regarding the acquisition and disposal of immovable property.
- The value of the property, as well as the repatriation of sale proceeds, may be subject to certain limits.
It is crucial for NRIs to consult with legal and financial experts to ensure compliance with the specific regulations applicable at the time of the transaction. Additionally, laws and regulations are subject to change, so it’s essential to verify the current rules before proceeding with any property transactions. Therefore, consulting with legal professionals and authorities for the most current information is advisable.
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