Report Wire - OCI cardholders can inherit land in India

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OCI cardholders can inherit land in India

2 min read
Mint 

I reside within the UK and am eligible to use for British citizenship. But earlier than I achieve this, I wish to know what choices I’ve concerning the next: public provident fund (PPF) during which I’ve invested for the previous eight years at a put up workplace; mutual funds with SBI and HDFC; LIC Jeevan Anand insurance coverage anticipated to mature in 2027; HDFC Young Star Udaan coverage; and financial savings accounts with SBI and HDFC Bank. As a overseas citizen, can I inherit both a small portion of agricultural land or residential property from my mom?

—Vinay

 

If you’ve been residing within the UK for lengthy, your residential standing could already be of a non-resident for the aim of taxation in India. Once you’re an NRI, you possibly can now not keep a resident checking account in India. As per RBI guidelines, you could redesignate your resident financial institution accounts as NRO accounts or NRE accounts. Perhaps you could select to merge balances in varied accounts and proceed one single NRO account, which might make issues simpler for you by way of sustaining and complying with varied necessities associated to reporting and taxes. You may additionally take into account opening an NRE account to deposit overseas earnings in India.

As an NRI, there are more likely to be restrictions on the way you make investments in mutual funds, shares, and so forth. in India and there could also be further compliance necessities.

An NRI can’t open a PPF account; nevertheless, if the standing of the resident holder of a PPF account modifications subsequent to the opening of the account, then such an NRI can maintain the investments in PPF until maturity. As mentioned, you could convert your resident accounts to NRO, NRE or Foreign Currency Non Resident accounts instantly, when you’ve got not already performed so.

Any earnings that arises from India shall be taxable in India for you. TDS shall be deducted in your capital good points earlier than these are credited to your account.

NRIs aren’t allowed to amass agricultural land in India. However, an NRO who’s a citizen of India or an abroad citizenship of India cardholder can inherit agricultural land or any immovable property in India from an individual resident in India. Do word that in case you resolve to promote such agricultural land, it might probably solely be offered to an individual resident in India.

Archit Gupta is founder and chief govt officer, ClearTax.

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