Indian laws on gifting of real estate are simple

The popular perception among non-resident Indians is that Indian real estate laws pertaining to inheritance of acquisition by way of gift are very complicated, but that is not really the case. In fact, they are quite simple.

NRIs and persons of Indian origin can acquire residential or commercial property by way of gift from a resident of India or an NRI. On the other hand, a foreign national of non-Indian origin resident outside India cannot acquire residential or commercial property in India by way of gift.

However, any person resident outside India cannot acquire agricultural land/plantation/farm house in India by way of gift.

Cosmic India

In other words, a gift is the transfer of an existing property and not of any future property. It must be made voluntarily and without compensation. It must be accepted by or on behalf of the done. Such acceptance must be made during the lifetime of the donor. The done can even be a minor. Also, the basic element of a gift is that it is given out of natural love and affection.

A deed of gift of an immovable property is required to be registered as provided under the Registration Act signed by or on behalf of the donor and attested by at least two witnesses. The title cannot pass without there being a registered deed of gift.

Sale proceeds of immovable property acquired by way of gift should be credited to a non-resident or NRO, account only. Rules and regulations on gifts very specifically clarify that any ambiguity in terms of process and handover should be avoided. NRIs very often witness such transactions but have no clarity on the process.

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