Can Nri Appartment Be Gifted To Resident Father And Sold

Is it Legally Possible? ​Yes, it is legally possible for an NRI to gift a property to a resident parent, who then sells it to a buyer. ​The Risks of Using the "Gift Route" ​While possible, doing this specifically to bypass NRI-related taxes and regulations carries significant risks: ​"Colourable Transaction": If the authorities determine the gift was made solely to avoid NRI TDS (Tax Deducted at Source) and FEMA (Foreign Exchange Management Act) compliance, they may treat the sale as a sham or "colourable" transaction.

It is legally possible for an NRI owner to gift the property to his resident parent and then the parent sells it to you. However, when this is done only to avoid NRI TDS and FEMA compliance, authorities may treat it as a colourable transaction. Later the buyer can face income tax queries, higher stamp scrutiny or even title challenge if intention appears tax-evasive. Safest option is still direct purchase from the NRI with proper TDS deduction and documentation. If you still want to proceed through gift route, the gift deed genuineness, relationship proof, holding period and tax implication must be carefully verified before paying any money.

Kindly contact us for more details. +919667660556