Capital gain tax on NRI & repatriation of funds

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2011 Mr A , NRI sold a property in India & wishes to save capital gain tax arising on the sale. Is section 54 applicable to NRIs. Is the deposit scheme applicable ??
Also can he purchase property outside India & still claim exemption.

In case he has to repatriate funds back to his country .. What are the ptovisions for the same. Any RBI permission reqd..? What is the total amount allowed to be repatriated?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 May 2011 Section 54 and deposits are applicable. Can invest in residential properties abroad as well in view of the decision in
Mrs. Prema P. Shah v. ITO [2006] 282 ITR (AT) 211 (Mum).
If the property is purchased with NRE funds, sale proceeeds can be repatriated subject to the compliance of Income tax Act,1961 and the rules of Foreign Exchange Management Act,1999.

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2011 In case the property was not purchased from NRE funds but the person was working in India that time & his status had changed to NRI later.

Then can he repatriate the funds to his country now?? & to what extent ?

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