Repatriation of sale proceeds of residential property by NRI / PIO

Rules to remit sale proceeds out of India for purchased or inherited property

Banks (RBI Authorized Dealers) have been given permission by RBI to allow NRIs to remit out of India, funds they receive from the sale of their property in India subject to certain conditions: The immovable property was acquired by the NRI in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him/her The amount to be repatriated does NOT EXCEED: the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or the amount paid out of funds held in Foreign Currency Non- Resident Account, or the foreign currency equivalent of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

Property purchased in India with Rupee sources from within India.

For property acquired with Rupee sources where money has not been send from abroad for example by a loan or money received from family etc. The sale proceeds can be credited to the NRO account of the NRI/PIO who has sold the property NRI/PIO are allowed to repatriate an amount up to USD 1 million per financial year out of the balance in the NRO account. Subject to payment of any taxes such as capital gains and providing proof to the bank that taxes have been paid.

Transfer proceeds received from sale of inherited

property

The sale proceeds can be credited to the NRO account of the NRI/PIO who has sold the property Repatriation is then allowed subject to: Production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter A tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the Reserve Bank of India. Additional Information on this topic is available in an article titled: Repatriate money from sale of property - Transfer funds abroad  
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Repatriation of sale proceeds

of residential property by

NRI / PIO

Rules to remit sale proceeds out of

India for purchased or inherited

property

Banks (RBI Authorized Dealers) have been given permission by RBI to allow NRIs to remit out of India, funds they receive from the sale of their property in India subject to certain conditions: The immovable property was acquired by the NRI in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him/her The amount to be repatriated does NOT EXCEED: the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or the amount paid out of funds held in Foreign Currency Non-Resident Account, or the foreign currency equivalent of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

Property purchased in India with

Rupee sources from within India.

For property acquired with Rupee sources where money has not been send from abroad for example by a loan or money received from family etc. The sale proceeds can be credited to the NRO account of the NRI/PIO who has sold the property NRI/PIO are allowed to repatriate an amount up to USD 1 million per financial year out of the balance in the NRO account. Subject to payment of any taxes such as capital gains and providing proof to the bank that taxes have been paid.

Transfer proceeds received from

sale of inherited property

The sale proceeds can be credited to the NRO account of the NRI/PIO who has sold the property Repatriation is then allowed subject to: Production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter A tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the Reserve Bank of India. Additional Information on this topic is available in an article titled: Repatriate money from sale of property - Transfer funds abroad