Can I purchase property on behalf of my NRI son?

Although you’re a overseas citizen having OCI card, assuming that you’ve got been residing in India for the requisite variety of days, you can be eligible to turn out to be a tax resident in India. Additional, relying upon your intention, you’d additionally qualify as resident for the aim of Fema (Overseas Alternate Administration Act).

Had your son been a resident equally, you’d have been allowed to buy an immovable property in India within the identify of your son. This is able to have been attainable even by means of a selected POA given in your favour for the supposed property to be bought within the identify of your son. Additional, this transaction would additionally not be handled as a benami transaction beneath the benami legal guidelines for the reason that supply of cost is established. Nonetheless, since your son is a non-resident, this transaction wouldn’t be permitted beneath Fema the place you’re making the cost for acquisition of property in his identify.

Alternatively, it’s possible you’ll reward the cash to your son and let him purchase in his identify or it’s possible you’ll first purchase the immovable property in India in your identify and thereafter reward it to your son. Each are permissible transactions beneath Fema.

Harshal Bhuta is associate at P.R. Bhuta & Co. Chartered Accountants

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Up to date: 21 Nov 2023, 12:00 AM IST