Legal Question in Real Estate Law in India
Tax on Inherited Property
I am a naturalised US citizen living in the USA. My father had created a Hindu Undivided Family (HUF) and made himself, my mother, my two brothers and I, as the five shareholders in our immovable property in India. After his demise 12 years ago and after my mother's demise 3 years ago, the property is now jointly owned by myself and my two brothers. We are planning to sell the property and divide up the proceeds equally. Will I have to pay any tax in India on my share of the proceeds? Will the Reserve Bank of India consider this as a valid ''Inheritance'' though I am one of the original shareholders of the HUF property?
2 Answers from Attorneys
Re: Tax on Inherited Property
You will be liable for the tax as per laws of India.
It is a legal inheritance. However, repatriation may not be possible, if the property sold was not brought out of foreign currency brought in India.
Re: Tax on Inherited Property
Since you are one of the co-sharers of the property, you may not be liable to pay any taxes except the 'capital gains'.
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