Q.901 Repatriation of sale

proceed of property held less than

10 years

Dear Team I have a question about repartiation of a property which has been bought in India using part of the money from India account and part by remittance As per page 180 in your book , it says the property bought from Indian sources should have a lock in period of 10 years before being able to freely repatriated Lets take a case that someone bought the property of Rs 30 Lacs in India, paid the money in Installements ...Rs 22 Lacs paid using money earned in India and Rs 8 Lacs by way of remittance If this property is now sold at Rs 60 Lacs.. So the money which is freely repatriable ... is it only Rs 8 Lacs or 16 lacs a double of the money originally invested using Remittance money as the property price also is doubled Please elaborate and help Thanks Hemant Answer: Repatriation of NRO funds as per RBI rules are stated as follows: ‘Authorised Dealers can allow remittance/s up to USD 1 million, of balances in NRO accounts/of sale proceeds of assets on production of an undertaking by the remitter together with a certificate issued by a Chartered Accountant in Annexure A and B as prescribed by the Central Board of Direct axes (CBDT). In the case of repatriation of sale proceeds of immovable property by NRIs/PIOs, ADs can allow repatriation thereof even if the immovable property was held by the NRIs/PIOs for less than 10 years provided the cumulative period of holding of the immovable property in India and retention of the sale proceeds of the property in the NRO Account is not less than 10 years’ As far as repatriation of the amount sent from abroad, as per rules only the amount of foreign exchange remitted by the NRI to India via normal banking channels for the purchase of the said property is allowed. The appreciation of the property is not allowed to be included. So if 8 Lakh was initially remitted then this amount can be repatriated. [*https://www.rbi.org.in/scripts/FAQView.aspx?Id=23]

Repatriation MAY be allowed before

10 year period in some cases!

However repatriation can be done sooner by obtaining special permission of RBI on certain acceptable grounds of adversity where money is required abroad. The one million per financial year remittance allowed by RBI has lots of avenues that make remittance easier. As long as someone has money in India were source of the money is accounted for and taxes are paid, then repatriation is quite easy. Check with your accountant for more information and help on this.