The Indian real estate market has long been an excellent investment avenue for the global Indian diaspora—the Non-Resident Indians and Overseas Citizens of India (OCI). If sentimental reasons for owning property in one’s home country are undeniable, the financial reasons to do so are no less convincing.
Even though OCIs have general facilities to travel, stay, and do business in India, they are specially regulated regarding property rights.
To find the answer to your question, ‘Can OCI inherit property in India?’, keep reading this blog post.
Definition of OCI
Overseas Citizenship of India (OCI) refers to a status given by the Government of India to all foreign citizens of Indian origin or descent. It entitles a person to lifelong visa-free travel to India like non-resident Indians (NRIs) and gives them certain rights, except the right to own agricultural land or political rights like the right to vote.
Eligibility Criteria for OCI
OCI can inherit property in India, but they need to be aware of the eligibility criteria as follows:
- Person of Indian Origin (PIO):
A person, on or after the twenty-sixth day of January 1950, becomes a citizen of India or belongs to a territory that became part of India after the fifteenth day of August 1947.
- Spouses of Indian Citizens/OCI Cardholders
Foreign spouses of Indian citizens or foreign spouses of OCIs, with at least two years of validity remaining for the marriage.
- Children/Grandchildren of Indian Citizens:
Given their relationship to Indian citizenship via their parents or grandparents, grandchildren or offspring of Indian citizens are eligible.
- Former Indian Citizens:
Those who are currently citizens of another nation but were previously citizens of India or whose ancestors were citizens of India are eligible.
- Minor Children of OCI Cardholders:
If at least one parent has OCI status, then minor children of OCI card holders are eligible.
Benefits of OCI Status
Here are a few illustrative benefits of OCI status:
- Multiple Entry, Multi-Purpose Lifetime Visa:
OCI cardholders are granted a multiple-entry, multi-purpose lifelong visa for visiting India, which enables them to enter and exit India multiple times without the need to take separate visas.
- Exemption from Registration:
OCI cardholders are not required to register with the local Foreigners Regional Registration Office (FRRO) or Foreigners Registration Office (FRO), regardless of their duration of stay in India.
- Investment Opportunities:
Holders of an OCI card are entitled to invest in most sectors within the country, except agricultural and plantation properties. They can also engage in financial dealings and open bank accounts within the country.
- Employment Opportunities:
An OCI cardholder is entitled to all the opportunities in regard to employment that are laid before the NRIs. They are allowed to work within the private sector in India, with just a few exceptions.
- Educational Opportunities:
A holder of an OCI card is entitled to the following education in India under the general category for admission into any educational institution in India, including medical and engineering courses, etc., with the same fee structure as Indian citizens.
Types of Properties OCIs Can Inherit
Here is the explanation to your question, can OCI inherit property in India and if yes, then of which type?
- Explanation of the Different Kinds of Property:
OCIs are allowed to inherit certain types of properties in India, including residential and commercial property. Each type can have its own rules or regulations governing it and the restrictions imposed on its respective category.
- Limitations on Agricultural Land for OCIs:
OCIs are generally not allowed to purchase agricultural land within India. In most cases, agricultural land can only be acquired or held by Indian citizens, excluding OCIs or NRIs, unless specific state legislation supplements or grants permissions.
- Process of Taking Over a Specific Type of Property:
The inheritance procedure for each type of asset may involve distinct processes, such as acquiring a legal heir certificate, executing wills, if any, and complying with FEMA for the transfer of immovable property to an OCI.
Read Also: Can a Foreign Citizen Inherit Property in India
Limitations and Restrictions Related to Property Ownership
Here are the key limitations and restrictions connected to property ownership by OCI cardholders:
- Restrictions on the Purchase of Agricultural Land:
An OCI cardholder is not allowed to purchase agricultural land in India. This is done to keep a check on agricultural investments and to avoid any kind of speculative buying.
- Residential Property Ownership:
Microworkers carrying an OCI card are generally allowed to own residential property in India, subject to any conditions and restrictions imposed by exogenous laws and regulations.
- Permission for Acquiring Immovable Property:
In some specified cases, OCI cardholders need to obtain prior permission from the competent authorities in India, including the Reserve Bank of India, to acquire immovable property in India.
- Repatriation of Sale Proceeds:
Can OCI sell inherited property in india? Yes, OCI can sell inherited property in India. However, an OCI cardholder needs to repatriate the sale proceeds of immovable property either to their home nation or to their account subject to certain terms, conditions, and limits set by the Reserve Bank of India.
Read Also: NRI Power of Attorney – Legal Essentials and Procedures
Takeaway
Now, you might have a satisfactory answer to the question: Can OCI inherit property in India? While they can enjoy the privileges of most forms of property through inheritance in India, proper management and understanding of the nuances of OCI status and property laws are paramount.
These rules make it easier for OCIs to manage their status and expedite the process of inheritance. This guarantees that all Indian legal criteria are met and promotes a seamless transfer of property ownership.
Furthermore, if you are looking for a residential property for your OCI child or grandchild, contact Rustomjee for details.
FAQs
- Can OCI holders inherit Property in India?
OCI Card holders are allowed to inherit property in India, based on certain property laws prevailing in India.
- Can OCI cardholders inherit agricultural land in India?
OCI Card holders are not allowed to take agricultural land in India. This is covered in protection to the agricultural interest and is provided under the various Indian laws for land holding and inheritance matters.
- What are the tax implications for OCIs inheriting property?
OCIs inheriting property in India might be subject to taxation as per Indian tax laws. The provisions relating to taxation would vary depending on whether the property is residential or commercial and the income generated from it.
- Can OCI sell inherited property in India?
Yes, OCIs can sell inherited property in India. According to Indian law, OCIs have similar property rights to NRIs in India; they can dispose of or sell the inherited property after going through the legal formalities and adhering to the taxation rules.
- Do OCI cardholders require approval from RBI to acquire property in India?
OCI cardholders do not need previous RBI permission to purchase residential or commercial property in India unless there is a special case.
- Can OCI Cardholders Inherit Property in India without any restrictions?
OCI cardholders are allowed to inherit property in India; however, they cannot possess agricultural land and must follow the legal processes for handling and returning inherited funds to their home country.
