Will I inherit my family’s land in India if I become an NRI?

These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.

I would like to understand what happens to my rights over inherited agricultural land in India if I acquire foreign citizenship. Will I still be able to inherit my family’s agricultural land, and are there any restrictions on holding, transferring, or disposing of such property after becoming a foreign citizen?

Rajat Dutta, Founder & Initiator, Inheritance Needs Services: Acquiring foreign citizenship will not impact your legal right to inherit or continue holding agricultural land in India. Inheritance of assets in India arises either by virtue of birth or through a testamentary document, such as a will. Therefore, acquiring foreign citizenship does not, in itself, affect an individual’s right to inherit assets in India.

Non-resident Indians, who are citizens of a foreign country, can inherit agricultural land from either a resident Indian or another NRI, provided the person from whom they inherit the land had acquired it lawfully. However, NRIs face restrictions on the sale of agricultural land, whether inherited or otherwise, and cannot sell such land to other NRIs, Overseas Citizens of India (OCIs), or foreign nationals/citizens.

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I recently acquired foreign citizenship and have submitted my Indian passport to the Consulate. I would like to know what other formalities I need to complete, particularly regarding my bank accounts in India, as well as PAN, Aadhaar, etc.

Rajat Dutta, Founder & Initiator, Inheritance Needs Services: Being a foreign citizen and an NRI (as per definition under the Income Tax Act), you need to update the residential status of your PAN Card to that of an NRI status. This can be done digitally through the Income Tax e-Filing portal. Next, it entails intimating your bankers about the updation, i.e changing resident bank accounts to NRO accounts, followed by updating the demat and mutual fund investments and associated linked bank account to that of an NRI. An Aadhaar Card is not compulsory for NRIs.

As a foreign citizen with Indian origin, you can apply for an Overseas Citizen of India card, and as the OCI card mentions the names of parents and spouse, it is often used as a KYC document. The application can be digitally submitted through the OCI services portal of the Government of India, with documents being physically submitted through an application made to the nearest VFS Global Indian Consular Application Centre in your country of domicile.

Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com