New York, Michigan, California, Florida, Illinois, New Jersey, Texas, Virginia, Pennsylvania, Georgia, Maryland
Country: United States
Many NRIs, even though they live abroad, have a lot of financial transactions in India. One of the main transactions in India for NRIs is the buying and selling of immovable property in India. In many cases, NRIs also inherit property from their parents or other relatives, which they then wish to sell. If you are selling your immovable property in India, then you may be under doubt regarding the repatriation of sale proceeds of immovable property by NRI. You may not be sure about the steps, documents and the legal implications when you repatriate money from sale of property in India, and how to transfer money from India abroad. Keeping all this in mind, we have created an NRI guide to selling property in India, focusing on repatriation of sale proceeds of immovable property by NRI.
Often, there are several private players who offer services of repatriating your money from sales proceeds abroad. However, this private method is known as ‘havala’, and is an illegal method of remitting funds abroad, which is often used to covert black money. By choosing this channel, you also run a risk of not receiving your funds in the country of residence. However, with the modernization of the Indian banking industry, it has become much simpler to repatriate funds that are accounted for, using safe and fast legal banking methods.
The RBI has delegated its powers to banks and other authorized dealers to repatriate funds abroad. However, there are several restrictions and rules that are currently in place.
If your property was purchased with remitted funds from abroad, then the principal amount can be repatriated immediately. The balance, if any, is to be deposited in an NRO account. For instance, suppose you spent USD 100,000 to purchase a property in India. Five years later, you sold the same property for a value of USD 200,000. In this case, USD 100,000 (the principal amount) can be repatriated immediately. The remaining USD 100,000 has to be deposited in your NRO account. Previously, there was a lock down period of 3 years for this extra USD 100,000, but this has now been removed by the RBI. In case your property was purchased using the Indian Rupee, then the sales proceeds can be deposited in your NRO account directly.
NRIs can then repatriate an amount of USD 1 million, per year, without explicit permission from the RBI. This includes proceeds from sale of up to two immovable properties per year. If the amount to be repatriated exceeds this amount, then you will have to get permission from the RBI to repatriate these funds.
Therefore, the first step to repatriate your sale proceeds is to deposit in your NRO account before you can repatriate it.
The second step is to take the services of a Chartered Accountant, which is explained below.
While the CA certificate was mandatory until a few years ago, this may not be mandatory for you today. The Chartered Accountant has to fill in a form called 15CB, which can be downloaded from the government’s website. This serves as proof that you have not obtained your money through illegal channels. The CA will attest that the amount held by you is from the sale of immovable property. After this step is done, you will need to fill in Form 15CA, which is explained below.
This is a form that deals with the applicable taxes on your transaction. This form can be filled online. You will require information proved by your Chartered Accountant to complete this form. Once the form is uploaded, you should receive a confirmation number as the form is sent to the relevant tax authorities.
Once this is done, the next step is to take both these forms to the bank where you have your NRO account. Additional documents, like the sale document of property and your valid ID proof should also be provided by you. Once this is done, you can now repatriate your funds from the NRO account to the country of residence. No other permission from RBI is necessary if the amount repatriated by you is less than USD 1 million.
By now, you should know that whether you have inherited property in India that you wish to sell, or you wish to sell an immovable property purchased by you, it is possible to repatriate money from sale of property, within the framework laid down by the Reserve Bank of India. We hope that this NRI guide to selling property in India has made the step by step process of repatriation of sale proceeds of immovable property by NRI, and how to transfer money from India abroad very clear and uncomplicated for you. We highly recommend, however, that you contact a qualified Chartered Accountant before selling your property in India, because a CA would be able to give you personalized, expert advice on the entire procedure. If you still are having doubts, you can also drop us a query, and we will get back to you.
Q: Can NRIs permitted to invest in air taxi operations?
A: Yes. Investments up to 100% equity participation for carrying on Air Taxi operations are permitted in terms of the guidelines issued by the Director General of Civil Aviation for Air Taxi...
Q: Is repatriation of the original investment and or dividend income be freely permitted?
A: Yes. Repatriation of original investment will be permitted after a lock-in period of three years from the date of issue of the equity shares/convertible debentures. In addition, OCBs will be...
Q: How can an NRI obtain the permission of Reserve Bank for investment in a sick industrial unit?
A: Application for necessary permission should be made by the Indian company to the Central Office of Reserve Bank in Mumbai in form RSU.
Q: Is interest earned in respect of investment made under the 100% scheme freely remittable to the NRIs abroad?
A: Yes, Dividend/interest can be remitted freely apart from the case of consumer goods industries where the outflow on account of dividend is required to be balanced by export earnings of the company...
Q: Can OCI holders open PPF account in India?
A: OCI holders who are living in India are considered to be residents in India. Their status is no longer that of a Non-Resident (NRI). Therefore they can open PPF account in India.
While we are on...
Q: What are the step by step instructions to replace lost OCI card?
A: Before a lost OCI card can be replaced,
Applicants should file a police report. To apply for a replacement OCI Card, applicants will have to provide a copy of the complaint filed with the police....
Q: Can i repatriate funds in the NRI account?
A: The principal as well as the interest of the funds in an NRI account can be repatriated only if a person holds either an NRE account or an FCNR account. In case of an NRO account, only interest...
Q: Can US citizen with OCI avoid paying Indian taxes on US income?
A: For taxation purposes, normally a person can be considered to be a resident or non-resident (NRI) of India. Where as Indian residents must pay taxes on their worldwide income, NRIs on the other...
Business and Finance
Immigration & Visa
Return to India
Two NRI devotees donate Rs 13.5 crore to Lord Venkateswara - Economic Times
8-year-old yoga champion named 'British Indian of the Year' Young Achiever - Times of India
Bahrain praises Indian community's role in its development - Times of India
93 Indians caught up in UK's 'Windrush' immigration scandal - Economic Times
Two Indian-origin women on Forbes list of America's richest self-made women - Times of India
PAN Card Download By Name And Date Of Birth
How to Link PAN Card with Aadhar
How To Check Domicile Certificate Status
Aadhar Card Centers in USA
Stamp Duty on Property in India
How to Get Aadhar Card for NRI
How To Renew Indian Passport In USA
5 Most Famous Hindu Temples in USA
OCI Tax Implications
How To Apply PAN Card for NRI
4th Conference on Palliative Care and Hospice Nursing
2018-08-27 To 2018-08-28
Yoga & Music Festival
Sukhava Bodhe Yoga & Music Festival 2018
2018-08-31 To 2018-09-03
Dussehra & Deepavali Celebrations
Dussehra And Deepavali Celebrations
2018-10-27 To 2018-10-27
Vivah Bridal Expo
Vivah 2018 Bridal Expo
2018-08-19 To 2018-08-19
Palliative Care Conference - Hospice Conference
Disclaimer - The content on this site is for informational purposes only.
Copyright © 2018 Videshi.com
Please login to make this action
You can save this page with current page title or you can create new page title.