Q710. Repatriate Proceeds of sale of agricultural land in India . . .

Question: Dear sir,

I live and work in USA. I am still not a green card holder.

Our family has some agricultural land in India which is jointly owned by me , my sister and parents. This was acquired by

parents several years ago and was put in our names. I did not buy it myself.

My parents would like to sell this land and send the proceeds to me. Can they deposit this money in NRO account which I can

repatriate ? Or is there a better way?

You might be aware that in India proceeds from selling agricultural land are not taxable. I would like to know how will it will be

taxed in US? Or is there a better way?

Thanks

(Phone number deleted - Please do not include phone number with your questions I cut and paste the questions and you don’t

want your phone number on websites!)

Answer: Your parents can deposit money in your NRO account but you will not be able to repatriate easily. Considering you are a non-resident the question of ownership of agricultural land, proof of legal sale, taxes etc. will have to be sorted out and a certificate from a chartered accountant will be required for repatriation to be allowed. Your parents could send you the money through other legal means. For instance under the Reserve Bank of India’s Liberalised Remittance Scheme ‘all resident individuals, including minors, are allowed to freely remit up to USD 125,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both’ Also, all Indian residents can send up to $100,000 per financial year to close relatives for family maintenance type expenses. Foreign gifts generally of money of property are not taxable in the United States. However, such gifts are required to be reported to the IRS on Form 3520 for information purposes. Even though no tax is payable, this form must be filled or the IRS may level penalties for failure to file the required information. For more information about Form 3520 and instructions on how to fill this form click HERE
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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Q710. Repatriate Proceeds of

sale of agricultural land in India

Question: Dear sir, I live and work in USA. I am still not a green card holder. Our family has some agricultural land in India which is jointly owned by me , my sister and parents. This was acquired by parents several years ago and was put in our names. I did not buy it myself. My parents would like to sell this land and send the proceeds to me. Can they deposit this money in NRO account which I can repatriate ? Or is there a better way? You might be aware that in India proceeds from selling agricultural land are not taxable. I would like to know how will it will be taxed in US? Or is there a better way? Thanks

(Phone number deleted - Please do not include

phone number with your questions I cut and paste

the questions and you don’t want your phone

number on websites!)

Answer: Your parents can deposit money in your NRO account but you will not be able to repatriate easily. Considering you are a non-resident the question of ownership of agricultural land, proof of legal sale, taxes etc. will have to be sorted out and a certificate from a chartered accountant will be required for repatriation to be allowed. Your parents could send you the money through other legal means. For instance under the Reserve Bank of India’s Liberalised Remittance Scheme ‘all resident individuals, including minors, are allowed to freely remit up to USD 125,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both’ Also, all Indian residents can send up to $100,000 per financial year to close relatives for family maintenance type expenses. Foreign gifts generally of money of property are not taxable in the United States. However, such gifts are required to be reported to the IRS on Form 3520 for information purposes. Even though no tax is payable, this form must be filled or the IRS may level penalties for failure to file the required information. For more information about Form 3520 and instructions on how to fill this form click HERE
N
RI Information
Informing educating and connecting Indians across the globe
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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