Unlock the potential of ancestral property in India for NRIs | Advocate Aashi Pawar
Explore the Rights and Opportunities for Non-Resident Indians (NRIs) about Ancestral Properties in India. Find out all the information from our expert and make informed decisions to protect your rights.
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LearningTranscript
00:00Hello viewers, this is Advocate Ashi Pawar. The topic which we are going to discuss today
00:06is understanding the NRI rights and opportunities regarding ancestral properties in India.
00:13So non-resident Indians have always had a special connection to their ancestral properties
00:18in India. These properties hold a sentimental value and have the potential for investment
00:25and future planning. However, navigating the legal and regulatory landscape governing
00:31the ancestral property rights can be a complex process for NRIs. Understanding these rights
00:38and opportunities is crucial for NRIs who wish to manage or invest their ancestral properties
00:44in India. In this video, I will talk about the rights
00:48and legal framework for NRIs regarding ancestral properties in India, highlighting the key
00:54considerations and opportunities available to them.
00:59Ancestral property, also known as inherited property, refers to the property that is passed
01:04down through generations. In India, ancestral property is governed by various personal and
01:11property laws, including the Hindu Succession Act, 1956, which applies to Hindus, Jains,
01:19Sikhs and Buddhists. The Act defines ancestral property as any property that is inherited
01:25from three generations of male lineage. So, what are the rights of NRIs regarding
01:30the ancestral property? NRIs have specific rights and opportunities concerning ancestral
01:37properties in India. NRIs have similar claims over their ancestral properties as that of
01:44any residents of India. If NRI is unable to come to India, so by issuing the power of
01:50attorney in the name of a local trusted person, he can claim his share in his ancestral property.
01:58It's important to note that these rights may vary based on the specific circumstances such
02:04as the type of property, the manner of acquisition and the applicable laws. Here are some key
02:10rights and opportunities for NRIs in relation to ancestral property.
02:15The first is inheritance rights. NRIs are entitled to inherit ancestral property based
02:23on the laws governing their specific religion. For example, under the Hindu Succession Act,
02:29daughters have equal rights as sons in ancestral property. NRIs, whether male or female, have
02:36the legal right to inherit ancestral property subject to the rules of interstate succession
02:42and any valid will or testamentary documents. When someone passes away without leaving a will
02:49or other testament naming all of their legal heirs, such belongings are divided in accordance
02:55with the inheritance rules. In order to claim the property in this situation, an action for
03:02declaration is filed in the relevant jurisdictional court. In accordance with inheritance laws,
03:08a successor must present title documents to demonstrate ownership of the property over
03:14the preceding four generations in order to establish their claim to the property in question.
03:19Testamentary succession is the process by which an individual leaves a written will
03:26outlining his or her property assets, specifically designating how those assets will be divided
03:33among heirs upon death. Property can be transferred in the successor's names by the relevant revenue
03:40department of that jurisdiction if the original will, original death certificate and any other
03:45relevant papers are shown to the relevant department. Second is ownership and transfer.
03:53So, NRIs have the right to own, manage and transfer ancestral properties in India. They can
04:00hold ancestral property as joint owners or sole owners as they can also transfer the property
04:06through sale, gift or testamentary dispositions such as a will. However, the transfer of ancestral
04:13property by NRIs is subject to compliance with the relevant laws including the Foreign Exchange
04:20Management Act, FEMA regulations. Third is investment opportunities. Ancestral properties
04:27in India offer NRIs investment opportunities. They can leverage their ancestral properties
04:33for rental income, property development or resale thereby tapping into the potential
04:39of the Indian real estate market. NRIs can also explore the options of repatriating the
04:45income earned from ancestral properties abroad subject to FEMA guidelines. As a co-parsner,
04:52an NRI has the following rights. So, the first right is to claim the share in the ownership
04:58and enjoyment of the ancestral property. Second right is to request and maintain the property
05:04related documents. Third is ability to reject kartas or any other co-occupies alienation of
05:11the property. Fourth is to seek partition of the joint property. Fifth is ability to transfer to
05:19the other co-owners his ownership stake in the property. While NRIs have rights and opportunities
05:25regarding ancestral properties in India, they must navigate certain legal and regulatory
05:30considerations to ensure compliance and seamless management of their properties.
05:35These considerations include tax implications, repatriation of funds, updating the property
05:41related documents etc. NRIs must consider the tax implications of owning and managing
05:48ancestral properties in India. Income tax, capital gains tax and property taxes are factors that can
05:55impact their financial planning and obligations. NRIs should be aware of the FEMA regulations
06:02governing the repatriation of funds from the sale or rental income of the ancestral properties in
06:07India. The regulations outline the conditions and limits for repatriating funds abroad and
06:14compliance is essential to avoid any legal complications. NRIs should ensure that all
06:21legal documentation related to ancestral properties such as titles, deeds, fards,
06:26jama bandhis, kharta certificates is updated and in compliance with the applicable laws.
06:31Once you acquire your right in the ancestral property, it is crucial to protect your rights
06:37in your absence from India. For that purpose, NRIs should ensure that their properties are free
06:42from illegal encroachments and claims from third parties. Ancestral properties hold emotional and
06:49symbolic values for NRIs, representing their family legacy and heritage. NRIs can incorporate
06:56ancestral properties into their long-term financial and estate planning to preserve
07:02their legacy for future generations and ensure that the properties continue to benefit their
07:07families. In conclusion, the opportunities for NRIs regarding ancestral properties in India are vast,
07:14but they require careful consideration and strategic planning to unlock their full potential.
07:20The property may only be claimed by co-parsonary members of the four generations of a Hindu joint
07:26family who inherited it. The claimant's ancestors must have left the property to them as well.
07:33It can be acquired by filing a claim in civil court, verbally agreeing with the other co-owners
07:39or by an informal family settlement. Once the shares are determined, it would be preferable
07:46to execute a partition deed. If the other co-owners are unwilling, one may file a civil
07:52case for division. A partial partition is an additional alternate whereby the claimant just
07:58obtains his portion as separate property where the remaining co-owners continue to be partners.
08:06With their right approach and professional guidance, NRIs can effectively manage,
08:11invest in and benefit from their ancestral properties, bridging the connection between
08:15their heritage and their aspirations for the future. Thank you for watching this video and
08:20I hope that I was able to give you clarity on rights of NRIs on ancestral properties.
08:26If you like this video, please like, share and comment and subscribe to our YouTube channel.
08:31Further, if you have any query, then write us at queryatthereightnrilegalservices.com.