Q.958 Sale of Property in India by

Australian OCI holder &

Repatriation

Question: Dear Sir Your Web site contains a wealth of information and we learnt so many things. I have got a property in India which I bought in 2010 and wish to sell now and repatriate the fund. I shall be grateful to receive your guidance on the following points:- 1. My wife has got an NRO account in India where I am also a signatory. She has got her own PAN number but I don’t. Can I then deposit the sale proceeds to my wife’s NRO account and transfer the fund after completing the rules and regulations of GST? Or, do I have to open a separate NRO account in my name? The property is registered in my name only. 2. I don’t have a PAN number. Do I need to have a PAN Number now? If the Buyer has got PAN and ADHAR Cards, do I still then need to have PAN for sale of property? 3. I brought A$40,000 from Sydney to State Bank of India to buy the property. Can I transfer A$40,000 immediately from the sale proceeds through my account and then wait for transfer of fund on capital gain, if any after completing the rules and regulations? Kindest regards – Dr Som Majumdar Sydney Australia, 7 Nov Answer: Regarding your questions: 1. If you are a joint holder of the NRO account you mention, then you should be fine. Otherwise you can open a NRO account which can easily be done even from Australia. Speak to your bank where your wife has NRO account. They may advise you on simply making her account as a joint account. 2. You don’t need a PAN. As a foreign national you are exempt from providing PAN that may be mandatory for Indian citizens. Where PAN must be provided, those who are exempt can just fill FORM 60. Click HERE to see a sample FORM 60 3. As per RBI rules regarding repatriation of sale proceeds of immovable property in India by PIOs, Authorized Dealers [such as banks] can allow repatriation of sale proceeds abroad provided: o Property sold was not agricultural land, farm house or plantation o Property was legally acquired as per rules prevalent under the foreign exchange regulations at the time of acquisition. o Repatriation amount does not exceed the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or from foreign currency accounts in India such as NRE account. o While the foreign exchange portion used to purchase property in India is easily repatriated. Any additional amount that does not fall in this category can be repatriated under the provision where NRIs and Persons of Indian Origin are allowed to remit an amount, not exceeding US $ 1,000,000 (US Dollar One million) per financial year out of the balances held in NRO accounts. Sale proceeds need to be deposited in a NRO account in such cases and repatriation is allowed subject to providing proof that any applicable taxes due have been paid. You can use the services of a Chartered Accountant to help complete the formalities.