Selling Property in India from Singapore: A Step-by-Step Guide

As Singaporean citizens, you can complete the necessary documentation to sell your father’s property in India while residing in Singapore. However, it is essential to follow the correct legal procedures to ensure compliance and avoid potential issues. Here’s a guide:

Steps to Follow

1. Drafting a Power of Attorney (PoA):
   Your father must execute a PoA granting you the authority to act on his behalf.
   The PoA needs to be notarized in Singapore and then attested by the Indian High Commission or Consulate in Singapore.
   Once received in India, the PoA must be registered at the Sub-Registrar’s Office where the property is located to be legally valid.

2. Legal Consultation:
   Hire a real estate lawyer in India to ensure all legal requirements are met.
   Verify ownership documents such as the title deed, sale deed, and encumbrance certificate to avoid disputes.

3. Tax Compliance:
   NRIs must comply with Tax Deducted at Source (TDS) provisions under Section 195 of the Indian Income Tax Act.
   For long-term capital gains (property held for over two years), TDS is 20%.
   For short-term gains, TDS is 30%.
   Ensure the buyer deducts the TDS before transferring the sale proceeds.

4. Repatriation of Sale Proceeds:
   To transfer the sale proceeds to Singapore, comply with the Foreign Exchange Management Act (FEMA).
   Use an NRO (Non-Resident Ordinary) account for repatriation. The repatriation limit is $1 million per financial year, unless prior approval is obtained.

Examples of Success and Challenges
Successful Transaction: A Singaporean family sold their ancestral property in India by executing a properly attested and registered PoA. A local lawyer assisted with the sale, ensuring compliance with FEMA and tax laws. The proceeds were successfully transferred to Singapore via their NRO account.
TDS Oversight: In another case, a buyer failed to deduct TDS during a property purchase from an NRI, leading to penalties for both parties. Such issues highlight the importance of consulting experts.

Future Developments
Digital Processes: Indian authorities are working on online PoA registration to simplify processes for NRIs. Stay informed about these updates for more efficient documentation.
Proactive Planning: Ensure all property-related documents are organized and consider appointing a trusted local representative to handle ongoing property matters.
Expert Guidance: Regularly consult with property and tax professionals in both countries to navigate cross-border compliance effectively.

Conclusion
With proper legal and financial planning, selling property in India from Singapore can be a smooth process. Accurate documentation and professional advice are crucial to avoid complications.

For expert assistance with property transactions in India, LawCrust Legal Consulting offers comprehensive services. They ensure compliance with Indian property laws, tax regulations, and FEMA guidelines, providing a hassle-free experience. Visit LawCrust Legal Consulting or call +91 8097842911 for professional support.