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 OCI buy life insurance in India?
A: You can buy insurance in India from any insurance company of your choice. Just call the company and their agents will virtually line up to sell you a policy. Get answers to all your questions...
Q: What will be status of OCI when living in India?
A: When you live in India your status in India will be that of any other Indian resident for day to day activities. Technically you will always be a person of Indian Origin(PIO) because even though...
Q: How to correct OCI application errors submitted online?
A: If you find errors in your application that you have filed on-line, and you catch this error before you mail in your documents, you should not send in the Forms you printed with the wrong...
Q: Can an NRI sell property in India without PAN card or PIO and OCI card?
A: Even though you don't have PIO or OCI, your status when in India will be a Person of Indian Origin. Anyone who normally has Indian family links or was born in India is considered to be a person of...
Q: Are OCBs required to produce any certificate regarding ownership / beneficial interest in them by NRIs?
A: Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/ trust is required to furnish a certificate from an overseas...
Q: Are persons resident in India required to surrender foreign exchange acquired/held by them?
A: Yes. Residents receiving foreign exchange from abroad by way of gift, inheritance, remuneration for services rendered, etc. are required to bring it to India within three months acquiring the...
Q: Are Returning Indians permitted to acquire fresh foreign currency assets by remittance from India?
A: Yes, provided the funds for the purpose are drawn out of their Resident Foreign Currency Accounts
Source : Reserve Bank Of India
Q: Do resident donees or legal heirs require the Reserve Bank permission to receive or hold foreign currency assets by way of gift or inheritance from Returning Indians or from those holding assets since prior to July 8, 1947 with the permission of the ..?
A: No. Resident donees or legal heirs of the persons covered under the general permission/exemption granted by the Government of India can continue to maintain their foreign currency assets provided...
Business and Finance
Immigration & Visa
Return to India
Indian American Manisha Singh sworn in as Assistant Secretary of State
- Economic Times
2 Indian-origin women lawmakers inducted into Ontario Cabinet - Economic Times
US naturalisation rates increase high among Indians: Study - Times of India
TechTech industry urges Trump administration to keep work permits for H-1B spouses - Economic Times
In a first, Sikh-American appointed New Jersey's AG - Economic Times
How To Apply OCI From India
Procedure For Import Of Gold In India
Difference Between OCI And PIO
GST Registration Process For NRI
How To Invest in Share Market 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
Dance pe Chance
, New Jersey
2018-01-27 To 2018-01-27
Rang Barse Holi Rain Dance 2018
2018-03-24 To 2018-03-24
Saraswati Puja 2018
Atul Khatri Live Show
Atul Khatri Live Bay Area
2018-02-24 To 2018-02-24
Gaye Jaa Muskuraye Jaa
2018-04-15 To 2018-04-15
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.