Property Law

Potential buyers who are not Indian citizens but are resident in India may still have the legal right to purchase property in India in India. The Foreign Exchange Management Act, 1999 (FEMA) regulates the purchase of properties by Non-Resident Indians (NRI), Overseas Citizens Of India (OCI), and foreign citizens.

The buyer must ensure that the land on which the purchase property is built is not agricultural land or plantation property, as these types of land can only be purchased by an agriculturist who is an Indian citizen.

NRI and OCI
The general requirements to obtain a OCI card include holding an Indian passport at any time, one’s parents, grandparents or great grandparents being born in India or permanent residents of India, or spouse being a citizen of India or OCI card holder. Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan may not hold OCI cards. For more information and a detailed list of requirements, please visit https://ociservices.gov.in/welcome.

An Indian citizen resident outside India or a OCI does not require any special permission to buy immovable property in India.

However, no payment of the purchase price can be made in foreign currency. The buyer make the purchase in rupees through funds received in India through normal banking channels, or funds maintained in any non-resident account under FEMA and RBI regulations.

There are also no restrictions on the number of immovable properties an NRI or a OCI may purchase for either residential or commercial purposes.

Foreign Citizens
A foreign national resident outside India cannot buy immovable property in India.

However, foreign nationals who are resident in India (and who are not citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan) can purchase immovable property in India without any special approval from the RBI. However such buyers should check with their lawyers before buying any property as they might require approvals from other authorities such as the State Government, etc.

To be considered a resident of India under FEMA, a foreign national would have to satisfy two conditions: He/she must be residing in India for more than 182 days during the preceding financial year, and His/her continued presence in India in the current financial year must be for the purpose of taking up employment, carrying on business or vocation in India or for any other purpose that would indicate your intention to stay in India for an uncertain period

Both conditions must necessarily be fulfilled for a foreign national to be considered a resident of India under FEMA.

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan who are resident in India can only purchase immovable property in India with the prior permission of the RBI, who will consider the request in consultation with the Government of India.

For more information, please visit https://www.rbi.org.in

Repatriation
An NRI or OCI may repatriate the proceeds from the sale of immovable property in India on the following conditions:

  • The property was purchased by the NRI/OCI in accordance with the provisions of FEMA in force at the time of the purchase
  • The amount repatriated should not exceed the amount paid for the property if the property was acquired in foreign exchange remitted through normal banking channels or out of funds held in an FCNR (B) account

In the following circumstances, the NRI/OCI may repatriate a maximum of USD one million per financial year:

  • Out of the balances held in the NRO account if the property was purchased out of rupee sources
  • If the property was acquired by way of gift, the sale proceeds must be credited to an NRO account, and thereafter may be repatriated
  • If the property was inherited from a person resident in India, it may be repatriated on production of documentary evidence proving inheritance, an undertaking by the NRI/OCI, and a certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes

In the case of residential property, repatriation of sale proceeds is restricted to not more than two such properties.

A foreign national may repatriate sale proceeds even if the property was inherited from a person outside India. However, prior approval of the RBI must be obtained.

A citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran must seek specific approval from the RBI for repatriation of sale proceeds.

What Is Mutation Of Property?

The municipal body in a city keeps records of property ownership transfers to fix property tax payment liabilities. And this document is a way to ensure that. Mutation of property shows that a property has been transferred from one person to another, and it also assists authorities in fixing taxpayers’ responsibility. Although not a legal document, it will be crucial if you want to sell your property in future. Mutation of property in Hindi is called Daakhil-Kharij.

How to apply for mutation of property and what does it cost? And what are the documents required for mutation of property in Delhi or Kolkata? Please note that the procedure and the required documents vary from state to state. But across India you have to file for mutation of property under these three circumstances:

  • If you have bought a property: Documents that you will be expected to submit for mutation of property in this case include a copy of the sale deed, an application for mutation of property with Rs 3 court fee stamp affixed on it, an indemnity bond on a Rs 100 stamp paper, an affidavit on a Rs 10 stamp paper, and latest property tax clearance papers.
  • Mutation of property after death of owner if you are an heir: For mutation of property in such cases, applicants have to submit a death certificate, a copy of the will, an indemnity bond on a Rs 100 stamp paper, an affidavit on Rs 10 stamp paper attested by a notary, and the latest property tax clearance papers.
  • If you have bought a property through a power of attorney: For mutation of property in such a case, you have to submit a copy of the power of attorney papers, a copy of the will, an indemnity bond on Rs 100 stamp paper, an affidavit on Rs 10 stamp paper, and the latest property tax clearance papers, along with an application with Rs 3 court fee stamp affixed on it.

 

Things You Should Know

  • It has to be noted that a very minimal penalty — as low as Rs 25, for instance — is charged if you do not get mutation of property done. And, you can also get the job done when it suits you. However, if you decide to sell your property in future, buyers will surely ask you to produce mutations papers. Not having them in place may jeopardise your chances of selling your asset.
  • Though it’s not legally binding, mutation of property is important as it stands as the proof of ownership and might act as a tax record.
  • Property mutation charges differ from state to state. And in most cases, they are in the range mentioned earlier.
  • Mutation of property is not a one-time duty; these papers need to be updated from time to time. A regular update will ensure your property records stand clean.

Relevant Government Websites

City Department Website Service
Delhi Delhi Development Authority dda.org.in/lands/transfer_mutation_residential_plots.htm For mutation of property in Delhi, visit the DDA website
Greater Noida GNIDA greaternoidaauthority.in/resmutf For downloading application forms for mutation of property in Noida
Gurgaon District Gurgaon gurgaon.gov.in/revenue.php For downloading application forms for sanction of mutation of property in Gurgaon
Hyderabad Govt of Telangana www.telangana.gov.in/ For mutation of property in Hyderabad and other Telangana cities
Kolkata Directorate of Registration and Stamp Revenue www.wbregistration.gov.in For checking the status of mutation of property in Kolkata and other cities of West Bengal
Mumbai Mumbai Sururban District mumbaisuburban.gov.in For online application for mutation of propert in Mumbai

Punjab Land Mutation

Mutation of a property/ land is the change of title ownership from one person to another person when land is sold or transferred. By mutating a property, the new landowner gets the title of the land recorded on his/her name in the land records society department, and the government of Punjab can charge property tax from the legal owner. The change in title ownership may happen due to the reasons such as the death of the original landowner and following transfer of the ownership due to inheritance or succession. In the case of leased property, the ownership title can be transferred through an irrevocable power of attorney. In this article, we look at the Punjab land mutation process in detail.

Importance of Property Mutation

Property mutation is a mandatory process in all legal transactions involving property. By mutating the property/ land, the new owner gets the revenue records on his name. Once the property is mutated, such details will be updated in the revenue records maintained by civic bodies like Municipalities, Panchayat or Municipal Corporations.

  • In the time of disputes on land, then land record will be useful as a legal document.
  • Mutation document is required to fix the property tax payment liabilities.
  • Mutation property is used to prove the ownership of a particular land.
  • For selling a property, the landowner has to submit the mutation certificate to the buyer for verification.
  • If a property is jointly owned, then the mutation certificate will be in all names of the co-owners.

Documents Required for Mutation Process

Mutation in case of sale of a property

The respective documents are needed to be enclosed in the village office for mutating a property.

  • The respective documents are needed to be enclosed in the village office for mutating a property.
  • Application for mutation with stamp affixed
  • Registration deeds (Both current & previous)
  • Sale deeds
  • Death certificate
  • Affidavit on stamp paper of requisite value
  • Receipt of up-to-date property tax payment
  • Ration Card
  • Aadhaar Card

 Mutation in case of Will or Inheritance

  • Copy of Succession Certificate
  • Application for mutation with stamp affixed
  • Affidavit on stamp paper
  • Receipt of updated property tax payment in case of Power of Attorney
  • Copy of Power of Attorney
  • Registration deeds (Both current and previous)
  • Sale deeds
  • Affidavit on stamp paper of requisite value
  • Receipt of current property tax payment
  • Ration Card
  • Aadhaar Card

Concerned Authority

The parties can approach the Offices of concerned Revenue Inspector and submit the mutation application relating to Mutation of the land at the Gram Panchayat level or in the Office of the relevant Block and Land Reforms official at the Panchayat level or in the office of district magistrate of particular district or block.

Property Mutation Application Procedure – Offline Method

In Punjab, the applicants must follow the following steps to apply for the land mutation by submitting the mutation form offline.

Step 1: The applicant can go to the nearest relevant block or sub-registrar office for the complete mutation registration process.

Step 2: You have to get the mutation application form from the concerned officials and have to fill out an application form in a prescribed format.

Step 3: You need to fill the mutation application with requested information without any mistakes.  Provide the information such as old owner details, new owner details and also mention the cause of mutation.

Step 4: You have to submit the application form in the prescribed format to the concerned operator along with all the supporting documents.

Step 5: After applying, you have to attach the specified documents along with the application form.

Step 6: Sub-registrar officer will forward the request for a Mutation certificate online to the concerned authority.

Step 7: The concerned Department will process the mutation request, and after successful verification, the authorised Government Officer will issue the mutation document.

Online Mutation of Land in Punjab

The applicant must follow the below-given steps to apply for the mutation of land in Punjab state.

Visit the Punjab Land Records Society Portal

Step 1: The applicant can visit the officialwebsite of Punjab Land Records Society.

Login to portal

Step 2: You have to click on the “registration” button to register on the website for the first time or else you can click on the “Login” button.

Step 3: Once you have logged in, select the district, Village, Tehsil/ sub-tehsil, circle and Year. Then click on the “Enter” option.

Apply for Property Mutation

Step 4: After that click on the “Mutation Request” link that is visible on the home page.

Step 5: Upon clicking on the button, you will be taken to the new page where you have to fill the following details:

  • Name
  • Mobile
  • Email
  • Select District, Tehsil, Village
  • Details of Request

Upload Requested Documents

Step 6: Fill out the details further in the application form and upload the mandatory /requisite documents and submit the application.

Step 7: After uploading all the requested certificates (scanned documents), click on the “Save Record” button.

Make Payment

Step 8: The payment for mutation is dependent at the ULB based on the cause of mutation that you have mentioned.

Step 9: Now you will be moved to the external payment gateway where you have to fill out all the following details to make the payment for mutation process.

  • UBL name
  • Collection date
  • Collection centre
  • Payment mode
  • Bank details

Step 10: Then, click on the “Make Payment” button to make the mutation fee online. A slip/ receipt will be generated as an acknowledgement slip for the amount made.

Generate Acknowledgement Number

Step 11: Once the payment is received, the competent authority shall verify the application. You will get a pop-up window with the message that your application is under verification process. You can take a print out of the receipt for future reference.

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