The Act covers various modes of property transfer, including sale, mortgage, lease and gift.
Archives: FAQs
Can NRIs buy property in India under the Property Transfer Act?
NRIs can purchase and own property in India, subject to certain conditions and restrictions outlined in the Act.
What is the Property Transfer Act, and what is its purpose?
The Property Transfer Act, formally known as the Transfer of Property Act 1882, regulates property transfers In India. Its purpose is to define the legal procedures for transferring property rights.
Is there tax implication on rights that NRIs get from family settlement?
A Family Settlement Agreement is not treated as a transfer or conveyance; rather, it only solidifies and recognises the pre-existing rights of the members. Therefore, there is no tax implication under capital gains when it comes to family settlements.
Is there still a chance of future legal disputes once you enter into a family settlement?
A legally sound family settlement is binding on all the involved parties. NRIs can hire a legal counsel to draft or review the Family Settlement Agreement to ensure legal compliance and to make sure the terms are not disputed in future.
What are the benefits of a Family Settlement Agreement in resolving NRI property disputes?
FSA is a cost-effective and time-saving method of resolving NRI property disputes while maintaining harmonious family relations.
What are the key features of a Family Settlement Agreement (FSA)?
FSA is an oral or a written agreement which parties enter into voluntarily for the distribution of a family properties and assets. A written FSA requires registration. FSA does not attract taxation on capital gains as FSA only recognises already existing rights and does not create any new right or title.
Why should NRIs choose family settlement over litigation to resolve property disputes?
NRIs choose to resolve property disputes with families through family settlements, as these agreements aim to avoid lengthy and adversarial legal battles while maintaining harmonious family relations.
What is a Family Settlement Agreement?
Family Settlement Agreement (FSA) is a legally binding agreement reached among family members to amicably settle family disputes relating to ownership, division, or management of properties or assets.