Yes, NRI can gift property to brother
NRI have two main advantage:
- The cost of transfer is just Rs.7150 (the cost is same for residential and non-residential Indian)
- TDS of 20.8% – 23.92% of property value is not applicable in gift deed transfer to brother (whereas TDS is applicable for conveyance deed)
ABBREVATION: (we will be using these short forms in below)
- POA : Power of Attorney
- DRO – District Registrar office
- OCI – Overseas citizen of India
- SRO – Sub-Registrar office
CONTEXT:
- NRI is not present in India for execution of gift deed, grands POA to brother
- With the power of attorney, brother executes gift deed to self
NRI can follow below steps to grand POA to brother from abroad:
Step 1: Draft the POA in word document
Step 2: Print the POA draft on A4 size paper
Step 3: NRI signs the POA at all pages. Two witnesses signs at last page of POA
Step 4: Gets the POA attested from notary public or Indian embassy in country of your resident
Step 5: Self attest OCI photocopy
Step 6 : Courier the attested POA and self attested OCI to brother in India.
In India, brother can follow below steps to adjudicate the POA:
Step 1: Brother should carry the following documents to DRO for adjudication of POA
- POA and self attested OCI which came from abroad
- Photocopy of brother’s aadhaar
- Request letter addressing to DRO for adjudication of POA, request letter signed by brother
- Stamp Duty payment of Rs. 500 per executant
Step 2: Brother submits the above-listed documents in DRO, in the jurisdiction of property location
Step 3: DRO adjudicates the POA within a day and hand it back to brother
Brother can follow below steps to execute GIFT Deed:
Step 1: Draft the gift deed with the help of an advocate
Step 2: Get the appointment from SRO for gift deed registration
Step 3: Print the gift deed draft on document paper
Step 4: Brother carry following documents to SRO for registration of gift deed
- Sale deed of property that the NRI acquired
- Tax receipt
- Khata
- POA
- Gift Deed (to be registered)
- Stamp Duty & Registration fee payment receipt
Step 5: In SRO, the brother presents the above-listed documents
Step 6: Brother signs the gift deed on behalf of NRI (Donor) and brother signs again for himself (as Donee).
Similarly, brother gives thumb impression & webcam photo on behalf of NRI (Donor) and again himself (as Donee).
Step 7: SRO scans the gift deed for digital record and handover the hard copy to brother.
This completes the procedure
Total expense for gift deed registration: (subject to Karnataka):
- Stamp Duty: Rs. 5150
- Registration fee: Rs. 1000
- Cess: Rs. 500
- Scanning fee : Rs. 500 (approx.)
Total Rs.7150
We provide assistance to execute gift deed. To opt for our service, please write to pgnproperties@gmail.come or WhatsApp to + 9 1 – 97424 79020.
Thank you for reading…