Is repatriation of application money for booking of flat / payment made to the builder by NRI/ PIO allowed when the flat or plot is not allotted or the booking / contract is cancelled?
The Authorised Dealers can allow NRIs / PIOs to credit refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential, commercial property, together with interest, if any, net of income tax payable thereon, to NRE / FCNR account, provided, the original payment was made out of NRE / FCNR account of the account holder or remittance from outside India through normal banking channels and the Authorised Dealer is satisfied about the genuineness of the transaction.
Can NRI / PIO repatriate outside India the sale proceeds of immovable property held in India?
(a) In the event of sale of immovable property other than agricultural land / farm house / plantation property in India by a NRI / PIO, the Authorised Dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely:
(i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations;
(ii) the amount to be repatriated does not exceed:
the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or
the amount paid out of funds held in Foreign Currency Non-Resident Account, or
the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; and
(iii) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
For this purpose, repatriation outside India means the buying or drawing of foreign exchange from an authorised dealer in India and remitting it outside India through normal banking channels or crediting it to an account denominated in foreign currency or to an account in Indian currency maintained with an authorised dealer from which it can be converted in foreign currency.
(b) in case the property is acquired out of Rupee resources and / or the loan is repaid by close relatives in India (as defined in Section 6 of the Companies Act, 1956), the amount can be credited to the NRO account of the NRI / PIO. The amount of capital gains, if any, arising out of sale of the property can also be credited to the NRO account.
NRI / PIO are also allowed by the Authorised Dealers to repatriate an amount up to USD 1 million per financial year out of the balance in the NRO account / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of inheritance / legacy. This is subject to production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and a tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the Reserve Bank.
(c) A person referred to in sub-section (5) of Section 6 of the Foreign Exchange Management Act, or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section.
NRI acquired an immovable property by way of gift. Can the funds received on sale of said immovable property be repatriated abroad?
The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From balance in NRO account, NRI / OCI may remit up to USD 1 million, per FY, subject to satisfaction of AD Bank and payment of applicable taxes.
If immovable property was received as inheritance by NRI / OCI from a person resident in India, can he repatriate the sale proceeds?
Yes, general permission is available to repatriate such sale proceeds. The amount of repatriation is restricted to USD 1 million per FY, subject to satisfaction of AD Bank and payment of applicable taxes.
In case of a foreign national, sale proceeds can be repatriated in similar manner if the property is inherited from a person resident in India.
Repatriation of sale proceeds in foreign exchange to Nepal and Bhutan is not permissible.
If the immovable property was received as inheritance by foreign national from a person resident outside India, can he repatriate the sale proceeds?
Yes, but only with prior RBI approval.
Can NRI repatriate the funds received against the sale of immovable property out side India or to his NRE account?
(a). In case the amount has been received from inward remittance or debit to NRE / FCNR (B)/NRO account for acquiring the property or for repayment of the loan, the principal amount can be repatriated outside India.
Repatriation of sale proceeds of residential property purchased by NRI/ PIO out of foreign exchange is restricted to not more than two such properties.
Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount up to USD one million, per financial year, as discussed below.
(b) in case the property is acquired out of Rupee resources and/or the loan is repaid by close relatives in India ( as defined in Section 6 of the Companies Act, 1956), the amount can be credited to the NRO account of the NRI/PIO. The amount of capital gains, if any, arising out of sale of the property can also be credited to the NRO account.
NRI/PIO are also allowed by the Authorised Dealers to repatriate an amount up to USD 1 million per financial year out of the balance in the NRO account for all bonafide purposes to the satisfaction of the authorised dealers, subject to tax compliance.
If you want to obtain Form 15CB / file Form 15CA call +91 98494 46110 / [email protected]