Q727. How to Send Money Abroad

from India.

Question: Dear Mr. Chand, I bought your NRI Guide about a year ago and it has been very helpful. Thank you so much for your service. I have the following questions at this time: My brothers were jointly buying land (empty land, not used for Agriculture) in 2008 for investment purposes. I wanted to invest some money and sent about $15,000 to my brothers through official banking channels (sent a few cashier's checks to their name). This money (deposited in my brothers' SBI accounts) was combined with their share of money to buy the land and the land was registered in my brothers' name. We have a good understanding and they were helping me to make investments by buying the land in their name. Now we want to sell the land and I want to repatriate the money from the sale of my portion of the investment. My brothers are ready to return the money (with profit) after the sale of the land. I have an NRO account. I learned the procedure from your NRI guide. My question is can a chartered accountant be able to complete the 15CB form and help me repatriate the money from my share of investment given this situation? Since the land is in my brothers' name, can I give an affidavit to the chartered accountant and or bank official stating that I sent money ($15,000) to my brothers in 2008 through official banking channels to invest in India. My brothers helped me in the investment by buying the land and registering in their names and I want to repatriate the money from the sale of the land? Do you see any issue with this approach? Could you please provide your suggestions to handle this situation in a best possible way? Could you please recommend some chartered accountants in India, particularly in Tamil Nadu, if possible? Thank you so much in advance for your help. I look forward to hearing from you soon. Best regards, NK Answer: Perhaps you should speak to a CA and seek advice on the best method of getting the money sent to you. Keep in mind also that money earned through investment even if it is tax free in India, will be taxable abroad. Money sent by your brothers as a gift from India to your bank account in USA may not be taxable and depending on the amount, will require only a declaration when filing a US tax return.

Sending money abroad from India is

easier now!

While we are on the subject of sending money abroad in foreign currency from India, you might perhaps also wish to probe the possibility of your brother selling the property and sending you your money under the Reserve Bank of India Liberalised Remittance Scheme. The source of the funds does not matter under this scheme of remittance as long as the money is sent from legal funds in a personal bank account in India. 1. Under the Liberalised Remittance Scheme, Any resident individual can send up to US$ 125,000 per financial year abroad for any permitted capital / current account transactions such as: o Gift o Donation o Investment in bonds / debt securities abroad o Overseas bank deposits etc. 2. Indian residents can send up to $100,000 per financial year to a close relative abroad. Money can be sent by wire transfer to your foreign bank account. 3. Remittance for Miscellaneous Purposes up to US $25,000 (As per Master Circular No. 6/2013-14 dated 1st July 2013) Most Banks are authorized by RBI to remit money under these schemes without further RBI approval by simply following RBI guidelines. Your brothers bank should be able to guide them on the forms that must be filled to send the money to you.