NRIs (non-residents of the USA and Canada) can invest in mutual funds just as quickly as Indian residents. The NRIs can invest in mutual funds by opening one of the following accounts with an Indian bank:
There is no differential taxation rate for resident Indians and NRIs. NRIs must pay Tax on short-term capital gains on debt funds as per the person’s income tax slab and equity funds at a flat rate of 15%. On long-term capital gains on debt funds, they must pay 20% tax with indexation and 10% tax without indexation, and no tax on the sale of long-term equity funds. However, for NRIs, the Tax is deducted at source, while resident Indians must make tax payments as per the advance tax schedule. Also, NRIs who live in countries that do not have a Double Taxation Avoidance Agreement, i.e., DTAA with India, will have to pay taxes both in India and their country.
Once an ancestral property is divided/partitioned, it halts being an ancestral property and becomes the only inherited property.
The inherited property is any property which a person inherits through a Will after the owner’s death or receives as a gift. Ancestral property is inherited by birth. Inherited properties can be obtained from any family member. Regardless, a person should know that inherited properties from his mother, grandmother, uncle, brother, or other family members don’t qualify as ancestral properties. Likewise, properties passed on from the father, grandfather, great-grandfather, and great-great-grandfather only qualify as ancestral properties.
Furthermore, any property a son obtains as a gift from the father or grandfather will not qualify as ancestral property.
The ownership of an ancestral property starts right from birth. If a male kid is born within the four-generation lineage, he automatically inherits the ancestral property.
The partition can be made by mere declaration to divide. When a joint-heirship partition occurs between brothers, they will acquire equal shares in the property after partition. For instance, if there are three brothers, each will take 1/3rd of the ancestral property after partition.
According to the Indian Succession Act of 1925, a “Will” or Will document is a legal declaration of the maker of the Will about his property that they wish to take effect after his death.
Yes, Intestate succession laws under the Indian Succession Act differ for different religions. For example, Hindus, Muslims, and Christians have different succession laws in the absence of a Will.
The Hindu Succession Act applies to Hindus only, including Jains, Sikhs, and Buddhists. While the Indian Succession Act applies to those not covered under Hindus or Muslims.