Many Non-Resident Indians (NRIs) have properties in India which they inherited from their parents or ancestors. Most of the time, they want to liquidate it. For NRIs, who had left India for so many years ago, may not be aware of the procedures of selling the inherited property.
Here are the procedures that an NRI should go through before selling the inherited property.
Step 1: Transfer the title of the property to your own name
The foremost thing you need to do after inheriting the property is transferring the title of the property to your own name. This process can be done by ‘mutation of revenue records’. For this you need to have a copy of the registered will or deed of partition, in case you haven’t possess these, you need to obtain the death certificate and apply for legal heirship.
Step 2: Arrange all the documents
After you got transferred the title of the inherited property, put together all the documents that need to sell the property. Here are the documents you need to sell.
1. Original title deed
2. Encumbrance certificate for the last 30 years
3. Possession certificate
4. Latest land tax receipt
5. Location sketch
6. Prior deed
7. Latest building tax receipt
8. Occupancy certificate
9. Approved plan
10. Id proof and address proof
Before getting into the actual process of sale, you need to identify the sale value of your property. Here you can seek the help a professional firm or you can do it by yourself after researching the market. While selling your residential property, NRIs should aware of the tax implications such as short and long term capital gains. When an immovable property is sold after a period of 2 years of its purchase is taxed at 20.8 percent. For inherited properties, the date of purchase of the original owner is considered for calculating the capital gain.