NRI/PIO/OCI - Repatriation of funds from Bank account & after sale of property
Repatriation is very simple now which was difficult in the past, planning can probably make it very easier.
NRIs are permitted repatriation of funds up to USD one million, per financial year, from NRO account subject to tax compliance. The limit of US dollars 1 million includes sale proceeds of up to two immovable properties held by NRIs/PIO/OCI.
- Consult CA before selling property in India for guidance as to how to accept money from the sale proceeds and what documentation to get.
- CA is the right Accounting professional who can prudently assist you in calculating as well as methodically paying taxes that may be due, on the sale of property.
- CA has to verify that taxes have been paid on 'Form 15CB'
Private money transfer, known as 'Hawala' is an illegal method of remittance which involves a great risk and possibly, you may lose your money.
Documentary proof evidencing source of money is required when transferring money abroad which must first be deposited in an NRO bank account and tax compliance is must before repatriation. If you have an ordinary account opened before you became NRI/PIO/OCI, please issue necessary instructions to your banker to convert the same into NRO account.
By - Bhagwan Dass Ahuja, LLM EsqIndian Attorney & Counselor at Law / Supreme Court of New York Licensed Legal Consultant.