Foreign investment

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samir thakkar (Querist)
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25 February 2015 My client has entered into an agreement of purchase of a residential property in Australia for about 4,00,000 Aus $. His daughter is an Australian citizen.
Que : How he can make remittance ? He will have to make remittance directly in the name of the developer or he can transfer the funds to his daughter for making payment to the developer ? Though the total cost is AUD 400000 ( appx 300000 US$ ) , only 20 % of the amount is to be paid. Any permission from RBI is required ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 February 2015 Individuals can also use funds under Liberalised Remittances Scheme (LRS) to buy immovable property abroad.

Encouraged by an improvement in the foreign exchange market, the Reserve Bank on June 3 had raised annual overseas investment ceiling for individuals to $125,000 from $75,000.

"Banks have been allowed to remit up to $125,000 per financial year, under the scheme, for any permitted current or capital account transaction or a combination of both. Further, it is clarified that the scheme can now be used for acquisition of immovable property outside India,"

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samir thakkar

samir thakkar (Querist)
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25 February 2015 Many thanks for your response.

One more thing please let me know whether the payment is to be made by remittance directly to the developer or to the daughter of my client, who in turn will make payment to the developer ?

Thanks again.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 February 2015 In consultation with the daughter and the banker who is going to remit the money you can choose either of them.

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