Yes, an NRI (Non-Resident Indian) can gift property to a brother residing in India.
This form of transfer offers two significant advantages:
- Minimal Transfer Cost:
The total cost for registering a gift deed is approximately ₹7,150, applicable to both residents and non-residents.
- No TDS Deduction:
TDS (Tax Deducted at Source), which ranges between 20.8% to 23.92% of the property value in case of a sale (conveyance deed), is not applicable when property is transferred via gift deed to a relative such as a brother.
COMMON ABBREVIATIONS USED:
- POA: Power of Attorney
- DRO: District Registrar’s Office
- SRO: Sub-Registrar Office
- OCI: Overseas Citizen of India
CONTEXT OF EXECUTION
In many cases, the NRI donor may not be physically present in India. In such situations, the NRI can execute a Power of Attorney (POA) in favor of the brother, who can then complete the gift deed process on their behalf.
PROCEDURE FOR NRI TO EXECUTE POA FROM ABROAD
Step-by-step process for granting POA:
- Draft the POA in a Word document.
- Print the POA on A4-size paper.
- Sign all pages of the POA. Ensure two witnesses sign on the last page.
- Get the POA attested by either a Notary Public or the Indian Embassy in the country of residence.
- Self-attest a photocopy of the OCI and PAN
- Courier the attested POA along with the self-attested OCI and PAN copy to the brother in India.
POA ADJUDICATION PROCESS IN INDIA
Once the POA arrives in India, the brother must get it adjudicated at the District Registrar’s Office (DRO):
Required Documents:
- Original POA (attested)
- Self-attested OCI and PAN photocopy
- Brother’s Aadhaar card copy
- A formal request letter addressed to the DRO
- Stamp duty of ₹500 per executant
Process:
- Submit the above documents at the DRO having jurisdiction over the property location.
- The POA is usually adjudicated within one working day, after which it is returned to the brother.
GIFT DEED EXECUTION PROCESS BY BROTHER
Once the POA is adjudicated, the brother can execute the Gift Deed at the Sub-Registrar Office (SRO).
Steps to Register the Gift Deed:
- Engage a qualified advocate to draft the Gift Deed.
- Submit an application for gift deed registration at SRO. We need the following documents for the application
- Original sale deed (showing NRI’s ownership), Latest property tax receipt Khata, Adjudicated POA
- Gift Deed (in original. Sign the Gift Deed on behalf of the NRI (Donor) and again for himself as Donee)
- Stamp duty and registration fee payment
- Schedule an appointment at the concerned SRO At the SRO, provide thumb impressions and webcam photographs for both roles
- The SRO will then digitally scan the document and provide a registered copy of the Gift Deed.
TOTAL COST FOR GIFT DEED REGISTRATION (KARNATAKA):
- Stamp Duty: Rs. 5,150
- Registration Fee: Rs. 1,000
- Cess: Rs. 500
- Scanning. Rs. 50 per page. (Rs 500 approx.)
- Total Estimated Cost: Rs.7,150
NEED ASSISTANCE?
We offer end-to-end support for executing Gift Deeds for NRIs. For assistance, please contact us at:
- pgnproperties@gmail.com
- WhatsApp: +91-97424 79020