If the documents and approvals are obtained correctly, sending the money becomes quite easy. However, if any mistakes are made, they may face both delays and penalties.

Who can sell the property?

If an NRI owns residential or commercial property, they can sell it to an Indian citizen, another NRI, or a Person of Indian Origin (PIO), but under FEMA rules. If an NRI owns agricultural land, a farmhouse, or a plantation, they can sell it only to an Indian citizen. NRIs can mortgage their property only with an Indian bank or a registered housing finance company.

Rules for sending money abroad: When and how much can you send?

If an NRI purchased property while living in India, i.e., before becoming an NRI, they can sell the property and send up to $1 million (approximately Rs. 8.3 crore) abroad annually. This transfer is only permitted through authorized banks under FEMA regulations. If the amount exceeds this limit, you will need special permission from the RBI.

If you purchased property in India after becoming an NRI, using a foreign currency, NRE, or FCNR account, you can send the entire sale amount abroad. However, this facility is only available for two residential properties in a lifetime. If you follow the correct rules and complete the documentation, there is no problem in sending money abroad.

What are the rules for inherited property?

If an NRI wants to sell an inherited property in India and send the money abroad, they must first submit a will or legal heir certificate. A tax clearance certificate is also required. The same $1 million annual limit applies to such transfers. If the inheritance is from another NRI, RBI approval may be required. This means that if the documents are complete, the process is easy; otherwise, obstacles may arise.

Step-by-step method for repatriating money:

• After selling the property, deposit the money into an NRO account.
• Fill Form 15CA, 15CB, and the Repatriation Application.
• Also submit documents such as the tax clearance, sale deed, and bank statement.
• The bank will verify the money, and then the money will be sent abroad.

What does the tax math say?

If the property you sold is less than three years old, the gain on it will be taxable according to your income tax slab. This means that the tax will be levied based on your income. However, if the property is more than three years old, it will be taxed at 20%, although it does benefit from indexation.

Indexation means increasing the purchase price based on inflation to reduce tax. For example, if you purchased a property for ₹10 lakh and, due to inflation, its indexed value is ₹14 lakh at the time of sale, tax will be levied based on the purchase price of ₹14 lakh, reducing your taxable gain.

Furthermore, if you reinvest the proceeds from the sale in a new property or government bonds (Section 54/54EC), you may also receive a tax exemption.

If you have the right documents and planning, remitting money becomes quite easy. But if any rule is missed or the document is incomplete, then both delay and penalty may be faced.

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The post NRI Repatriation rules : Are you an NRI and have you sold property in India? Learn the important rules for sending money abroad. first appeared on Rightsofemployees.com.

There is a lack of information among many people about the provisions related to the rights of daughters on father’s property. Especially women have less information about it. Many women believe that they have nothing to do with this property. Apart from this, due to various social traditions, daughters are deprived of their rights in father’s property.

At present, there is a clear law in India regarding how much right daughters have in property and when daughters do not get a share in father’s property. There is no confusion anywhere. Here we will tell you about the legal provisions related to the rights of the daughters on the father’s property .

What the law says:

By amending the Hindu Succession Act, 1956 in the year 2005, daughters have been given the legal right to get equal share in ancestral property. This law was made in 1956 for the provisions of claim and rights on property. According to this, the daughter has as much right on the father’s property as the son. Strengthening the rights of daughters, the 2005 amendment in this succession law ended any doubts about the rights of the daughter on the father’s property.

When the daughter cannot claim the father’s property,

the daughter’s side is weak in the case of self-acquired property. If the father has bought land, built or bought a house with his own money, then he can give this property to whomever he wants. It is the legal right of the father to give self-acquired property to anyone of his own free will. That is, if the father refuses to give the daughter a share in his own property, then the daughter cannot do anything.

What does the law say in case of daughter being married

Prior to 2005, in the Hindu Succession Act, daughters were considered only as members of the Hindu Undivided Family (HUF), not coparcenaries ie equal heirs. Hamwaris or equal heirs are those who have rights over the undivided properties of the four generations before them.

However, once the daughter is married, she is also not considered a part of the Hindu Undivided Family (HUF). After the amendment of 2005, the daughter has been considered as co-parcener. Now the daughter’s marriage does not change her rights on the father’s property. That is, even after marriage, the daughter has the right over the father’s property.

Can go to court if property is not received

Daughter can go to court to claim rights in father’s property. For this he has to file a case in the civil court. If the claim is correct, the daughter will get rights in the father’s property.

Daughters cannot get right on father’s property when the following situations happen:

1. Under the Hindu Property Bill (Hindu Marriage Act): Under the Hindu Property Bill, the daughter has no right over the father’s property if the father is alive. The ownership of the property remains with the father, and after his death this property is distributed among other members of his lineage, such as mother, brother, sister etc.
2. If the property is under encumbrance: If there is an allegation of encumbrance on the property, such as under an action for an offence, then the daughter cannot have a right on the father’s property. In this situation, if the court or the concerned authority justifies it, the property can be merged and the daughter has no right over it.
3. If the father has transferred the property by way of gift: If the father has transferred his property by way of gift and handed over the same to a bank, organization or other person for personal or business purposes, then the daughter shall be entitled to the property of the father. There is no right on the property.

If you have a controversial situation, you should consult a legal adviser who can provide you with specific information and advice in relation to the disputes.

The post When do daughters not get the right on father’s property? first appeared on Rightsofemployees.com.