1) Both purchase and sale is valid
2) Not mandatory but you should have PIO card
3) No
4) PIO
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Indian origin US Citizenship buing/selling property in india
Sunitha and saumya are two sisters both born in india to indian citizenship parents in 1957 and educated in india and they went to US with indian citizenship and for job and settled there and got US Citizenship who got US Passport in 2005,they dont have indian-passport,indian citizenship, OCI,PIO card they purchased a residential plot in bangalore from krishan in 2010 and they sold the property to me in 2022.they are having PAN card and NRO bank account in india and filing tax Regularly 1)is the sale is valid can sunitha and saumya can buy and sell a residential property in india with out indian-passport,OCI and PIO card ? 2)is OCI/PIO card mandatory for purchasing residential property in india for sunitha and saumya ? 3) is there any complications involved in the sale ? 4) are they NRIs/PIOs with out indian citizenship?
Asked 1 year ago in Income Tax
Yes they can sell and buy residential property not an issue.
No I don't think that it is mandatory.
You need to deduct correct TDS u/s 195 in relation to such property.
They are basically foreign resident only.
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Hi All, I am a resident indian purchased a residential plot from a PIO he gave me SBI savings account TO TRANSFER the sale amount and I did that and paid tds and credit the tds amount to his PAN and registration is done later I came to know PIO should have NRO account to do such transaction 1. do I face any challanges from FEMA or RBI ? 2. Do seller face any challanges from FEMA OR RBI ? 3. FEMA and RBI catch me or seller ? 4. Is there any problem with my sale ?
Asked 12 months ago
- The purchase and sale of the residential property by Sunitha and Saumya is valid. They do not require Indian passport, OCI cards or PIO cards to buy or sell residential property in India.
- PIO/OCI card is not mandatory for them to purchase residential property in India, since they are considered Persons of Indian Origin based on their birth in India to Indian parents in 1957.
- There are no legal complications or issues involved with this property sale, since Sunitha and Saumya have been filing taxes regularly in India using their PAN cards and NRO bank accounts despite now being US citizens.
- Though Sunitha and Saumya gave up Indian citizenship in 2005 when they obtained US citizenship and passport, their birth and ancestry make them Persons of Indian Origin legally allowed to own residential property in India.
In summary, the sale of the Bangalore property purchased by them in 2010 and sold to me in 2022 is valid and legal for all parties with no major issues involved. Their PIO status, tax records and documents in India authorize the transactions.
You won't face any challenge if you were not intimated that he is not resident.
1. No
2. Penalty may be leviable. It is advisable to open NRO/NRE accounts at the earliest
3. Seller is liable to intimate his residential status to the bank and open NRO/NRE accounts
4. No
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