[caliper]

I was wondering about details re: registration of a car in an NRI's name.

I was planning to buy a car (Innova) and I wanted to register it in NRI close family member's name. The car would be bought through an NRI loan and as far as payments, we would work that out in the family.

I guess I would have to have power of attorney, correct? What about insurance, would that be in my name or the name of the registered car owner? Or can it be joint?

When it comes time to sell, would any special formalities/cautions need to be observed?

Also, I believe that the income tax department doesn't bother about cars bought by NRI's, only resident inmates. (Oops, I mean Indians

[nispatel]

Yes, you'll require Power of Attorney, probably registered one.

It's your NRI relative's name that would figure in all the documents. You would be executer on his/her behalf.

You'll have to follow the same route while selling this car if he / she isn't available at that time.

[caliper]

Originally Posted by nispatel

Yes, you'll require Power of Attorney, probably registered one.

It's your NRI relative's name that would figure in all the documents. You would be executer on his/her behalf.

You'll have to follow the same route while selling this car if he / she isn't available at that time.

Thanks for the response.

Since the car was paid for w/ outside funds (i.e., NRI funds), could the money from sale of the car be considered still outside funds, and either repatriated to the US, or deposited in an NRE account?

[HSV]

Originally Posted by caliper

Thanks for the response.

Since the car was paid for w/ outside funds (i.e., NRI funds), could the money from sale of the car be considered still outside funds, and either repatriated to the US, or deposited in an NRE account?

Nope! Funds can ONLY be deposited into an NRE accounts through only ONE route, i.e., repatriation from overseas.

[Sahil]

Whats the advantage of registering the car in an NRI's name?
Its the interest or taxes lesser?

[caliper]

Originally Posted by Sahil

Whats the advantage of registering the car in an NRI's name?
Its the interest or taxes lesser?

Well, let's say an NRI is providing the majority of funds for a car purchase. He might want to have the car in his name instead of a local family member's.

I was asking about that because there are certain things that NRI's can not register. (Such as agricultural land.)