NRIs can take home family property

MUMBAI: The Reserve Bank of India (RBI) has said that non-resident Indians and persons of Indian origin can take abroad their share of family property in India received by way of settlement during the lifetime of the family head. However, in a strange move, the RBI has said the remittance will be allowed only upon the demise of the settler. On the face of it, the new norms appear to be a further liberalisation of a measure announced by the RBI two years ago, which allowed remittances of $1m per annum out of sale of assets arising out of inheritance or legacy. This remittance was allowed subject to the production of certain documents. The new norms by the Reserve Bank allow NRIs to remit overseas funds they receive in India as a result of a family head dividing his estates among family members. According to the RBI, this circular is intended to clarify that settlement is also a mode of inheritance from the parent, the only difference being that the property under settlement passes on to the beneficiary on the death of the owner/parent without any legal or procedural hassles and helps in avoiding inconvenience and delay in applying for probate. â€œOn a review, it has been decided to extend the facility available under legacy/inheritance to an arrangement under a â€œsettlementâ€� whereby the property is passed on to the legatees during the lifetime of the owner/parent who normally retains a life interest in the property,â€� RBI said in a circular issued to all banks and authorised dealers of foreign exchange this week. The documents required for transferring money abroad include an undertaking by the remitter and a certificate by a chartered accountant in the formats prescribed by the Central Board of Direct Taxes. For the purpose of allowing remittance, banks will recognise a deed of settlement made either by parents or close relative (as defined in Section 6 of the Companies Act, 1956). The remittance facility would be available only on demise of the settler. The RBI has separate guidelines for SAARC countries, which will continue.

NRIs can take home family property

The RBI has said that NRIs can take abroad their share of family property in India received through settlement.

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