Q635. Transfer sale proceeds of property in India to NRE account . . .
Question: can we deposit long lasting capital gain after taxation on sale proceeds of immovable property in NRE account directly, As
such that the present rule allow to transfer money from NRO to NRE.
mohammed ahmed Answer: Transfer of Rupee funds to NRE accounts was not allowed until May 2012 when rules were relaxed to some extent. However, as far as sale proceeds of property in India is concerned, this money cannot be directly deposited to a NRE account. Sale proceeds must first be deposited in your NRO account. After the money is deposited in the NRO account, to transfer the money to NRE account, proof that taxes have been paid is required by the authorities. A certificate from a chartered accountant verifying that all capital gains taxes have been paid and the money in question is indeed from the sale of property. Once these formalities are completed, transfer from NRO to NRE can be made. Kindly note that the transfer from NRO to NRE is allowed only up to a limit of one million US Dollars per financial year after payment of all applicable taxes. Contact a chartered accountant for guidance or contact the bank where you have your NRO/NRE account. They should be able to guide you.
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Q635. Transfer sale proceeds of
property in India to NRE account
Question: can we deposit long lasting capital gain after taxation on sale proceeds of immovable property in NRE account directly, As such that the present rule allow to transfer money from NRO to NRE. mohammed ahmed Answer: Transfer of Rupee funds to NRE accounts was not allowed until May 2012 when rules were relaxed to some extent. However, as far as sale proceeds of property in India is concerned, this money cannot be directly deposited to a NRE account. Sale proceeds must first be deposited in your NRO account. After the money is deposited in the NRO account, to transfer the money to NRE account, proof that taxes have been paid is required by the authorities. A certificate from a chartered accountant verifying that all capital gains taxes have been paid and the money in question is indeed from the sale of property. Once these formalities are completed, transfer from NRO to NRE can be made. Kindly note that the transfer from NRO to NRE is allowed only up to a limit of one million US Dollars per financial year after payment of all applicable taxes. Contact a chartered accountant for guidance or contact the bank where you have your NRO/NRE account. They should be able to guide you.
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