Re-distribution or adjustment of pre-existing rights, among co-owners/coparceners, resulting in a division of lands or other properties jointly held by them, into different portions and delivery thereof to the respective allotteess is called partition. The effect of such sections is that the joint ownership is terminated and the respective shares vest in them in severalty. A partition of a property can be only among those who are having a share or interest in it. An individual who does not have a share in such property cannot be a party to a partition. Separation of share is a type of partition. When all other joint partners get separated from others it is called a partition. Separation of shares is when, where only one or a few among several co-owners or coparceners get separated and others continue to hold the remaining property jointly. Partition can be done either mutually or as per terms of the Will, it does not make any difference of the nature of property. So the parties while making partition must have to include all the assets of the joint property. As per the law in India, NRIs cannot own an agricultural land in India. NRIs may acquire such agricultural land through inheritance from an individual residing in India. Accordingly, you may inherit an agricultural land. Also the agricultural land can only be sold to a person who is a resident in India. A person cannot sell your agricultural land in India to your NRI friend. Under the Income-tax law, the value of any assets received under a Will or by way of inheritance is not taxable in India. The income arising from transfer/ use of inherited property in India will be taxable in India.
- According to Foreign Exchange Management Act 1999 empowers the Reserve Bank to frame regulations to prohibit and regulate the acquisition and transfer of immovable property outside India by individuals residents in India
- These restrictions do not apply to the property held by a resident in India who is a foreign national and if the property was acquired by a permanent resident in India on and before July 8, 1947 and continued to be held by him with the permission of the Reserve Bank. The restrictions also do not apply to acquisition of property outside India by an individual resident in India on a lease not exceeding five years. Various ways of acquiring property outside India by a resident . As per section 6(4) of the FEMA, a person resident in India can hold, own, transfer or invest in any immovable property situated outside India if such property was acquired, owned by him/ her when he/ she was resident outside India or inherited from a individual resident outside India
- An individual resident in India who had acquired such property on or before July 8, 1947 and continued to be held by him with the permission of the Reserve Bank.
- An individual resident in India who has acquired such property in accordance with the foreign exchange provisions in force at the time of such acquisition.
- Immovable property can be purchased by a resident outside India out of foreign exchange held in his or her resident foreign currency account(RFC).
- Immovable property can be acquired by a resident outside India jointly with a relative who is a permanent resident outside India , there is no out flaw of funds from India.