Q.1290 Repatriation of

inherited funds by OCI

Question: Dear Mr. Chand, The FAQ section is very useful. I would be grateful for advice on the following issue. My inheritors are my step-children who are US citizens. They have OCI certificates. After my death and the probate of my Will, how should they set about repatriating the funds, which will be much less than $ 1 million. Many thanks for your advice, Answer: Your children would need to provide proof of inheritance. There is no estate duty now in India. In case inheritance includes property such as house and it is sold to repatriate the sales proceeds; then the buyer of the inherited property is required to deduct income tax under Section 195 of the Income Tax Act, on the taxable amount of capital gains at the rates applicable. If you are NOT a US citizen, resident or a green card holder, then inheritance or estate tax would not apply. Your heirs would need a certificate from the Chartered Accountant in India specifying that no taxes are due on the amount being repatriated. In summary your children to repatriate their inheritance would need • Proof that the money being transfered abroad is from an inheritance • The services of a real estate broker to sell immovable property in case such property is part of inheritance • A Chattered accountant to help with the tax formalities and certificate showing taxes if due have been paid Once the paperwork is done, banks in India will submit funds abroad.