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NRI/PIO/OCI - Repatriation of funds from Bank account & after sale of property

Submitted by Shashi Mohan on Sun, 10/25/2015 - 5:16am.

Updated on Jan 16, 2019

Repatriation of funds from sale of property in India is not at all challening. A meticulous planning can make it very easier.

NRIs/OCIs are permitted repatriation of funds up to USD 1 million per financial year from NRO account subject to tax compliance. The limit of USD 1 million includes sale proceeds of up to two immovable properties held by NRIs/OCI.

Documentary proof evidencing source of money is required when transferring money abroad and that must first be deposited in an NRO bank account and tax compliance must be completed before repatriation.

Planning steps:

  • If you have an ordinary bank account opened before you became NRI/OCI, then please issue necessary instructions to your banker to convert the same into NRO account. You may also open a new NRO account.
  • Consult the buyer of your property or broker/agent about tax withholding (TDS) out of sale proceeds of your property.
  • Consult a Chartered Accountant (CA) in India to get a draft calculation of ‘Capital Gain Tax’ (Long Term Capital Gain or Short Term Capital Gain) based on cost of acquisition of the property and proposed sale consideration.
  • Should you find the amount of TDS is high (compared to estimated Capital Gain Tax), plan getting a ‘Lower Tax Deduction Certificate. Your CA may help filing it online.
  • Your CA will guide you with the documentation required to be filled to take back the money from the sale of your property back to your home country.
  • Once the money is available in your NRO Account and ready to repatriate, the documents required include Sale Agreement of your property, Form 15 CA & 15CB, FEMA Declarations along with signed forms, which your bank will provide you.
  • A copy of your PAN Card, sale agreement, purchase agreement, tax paid challans and other details will be required by your CA to file Annual Income Tax Return (ITR) at the due dates and claim refund of access tax paid, if any.

You can contact Shashi Mohan, the author of this article, at shashi.m@excelorindia.com. Shashi Mohan's linkedin profile is https://www.linkedin.com/in/shashimohan.

Comments

Money transfer from Singapore to Canada by a Canadian PR living
Can I bring the sale proceeds to Canada? If so what's the tax implication?
     
Money transfer from Singapore to Canada by a Canadian PR living
Hello Mr Viswanathan Thanks for your query We understand that you wish to transfer sale proceeds of your assets from Singapore. Though, we can advise you from Indian prospective, however if you share more information, we can also guide you on the implication from Singapore side. Please write us with details of your assets (location, nature, period of holding etc) at shashi.m@excelorindia.com We will be very happy to reply you. Best regards/Shashi Mohan
     
NRI/PIO/OCI-Repatriation of funds from Bank account & after sa
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. NOW as per my understanding from the above, an individual can transfer funds: 1. Up to USD 1 million per financial year; this limit includes sale proceeds up to two immovable properties; 2. Thus sale proceeds restricted to two immovable properties & repatriation is restricted to per financial year. Please advice. Best regards Jotinder Rana +1 786 200 6571 jotkittyrana@gmail.com
     
Transfer money from India
I will be receiving income from a quarry in my property in India which I inherited from my father How can I transfer that money to USA after paying all taxes due in India? Thanks
     
Transfer money from India
Hello James Thanks for writing at Entry India We guess that sale proceeds of your inherited assets are already parked in your bank account in India. We wish to inform that irrespective of the fact that you wish to repatriate the same to USA, you need to check if there is any tax liability on the sale. A concessional rate of tax is applied in case of a Long Term Capital Gain. Compliance in India would include paying the due tax, if any, paying the same at due time and also declaring it in a tax return. Once these activities are done, you can produce it at your bankers who will initiate the repatriation. Hope it clarifies Should you require any further information in this regard, please revert back to us
     
Repatriation process

Hello Sir,

I recently opened an NRO Rupee Checking account with Citibank. I am a NRI reside in CT.

Due to inheretence, I received a sum of money which is in a bank account managed by my sister.

I need some help towards executing the appropriate repatriation process in order transfer it to my US based bank.

I believe i need to fill up some forms.

Contact 732-672-2556

dchanda9596@gmail.com

 

Thanks 

 

Dhiman Chanda

     
Going to become NRI

I m a resident of india.I have sold a house in india in Oct 2015, paid capital gains and have received Assessment order for last 2 years.The proceeds are available in a domestic savings a/c.Now, I m planning for higher education in USA for Fall 2017 and will become an NRI.Can the proceeds available in this resident savings a/c be converted to NRE a/c?Is the facility to transfer from NRO to NRE a/c at the discretion of the banks?I see Citibank india does NOT permit to transfer from NRO to NRE.

     
NRI legal Services - legal or non-legal issues back home in Indi

Dear Sirs or Madams;

You will all be glad to know that being licensed by and admitted to the Supreme Court of the State of New York as Legal Consultant and Indian Attorney & Counselor at Law, in good standing and also an Advocate enrollled under the Indian Advocates Act, 1961 (IAA) may represent NRIs in respect of their any legal issues back home in India to defend them through all courts including the Supreme Court of India. 

Being an Indian Attorney & Counselor at Law in New York having been licensed by and admitted to the Supreme Court of the State of New York, I may as an accredited Indian Attorney represent clients in USCIS / U.S Embassy in India by filing form G-28 I for all kinds of consular processing for immigrant and non-immigrant visa services.

The NRI clients may contact me for their legal issues back home in India by calling me at 212-863-9214 for their issues no matter whether the issues are legal or non-legal, we can protect their legal rights.

Best regards

 

Bhagwan Dass Ahuja

 

 

 

     
NRI LEGAL SERVICES
PHONE NO CHANGED AND NEW NUMBER IS 718-616-9211
     
Repatriation with Citibank NRO account to USA

Dear Mr. Ahuja,

When you apply to Citibank for Repatriation of proceeds of inherited property, they accept a 'probated will' only. I heard that there is a CASE LAW precedent in Delhi Court not requiring a probated will as part of the India Succession Act of 1925 for Repatriation purposes.

Is that correct? Have you dealt with this issue with Citibank India?

I am age 70, and would appreciate your reply to my specific point of law.

 

 

     

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