Pio and repatriation of funds from sale of immovable propert
This query is : Resolved
03 October 2011
Hi,
We are selling an immovable property in Pune, the proceeds of which go to my sister who is a PIO and she in turn wanto to repatriate it to her country of residence.
The property was in the name of my deceased father (he passed away in 1997), my mother and sister and we got his name removed from the property after his death. My sister has a NRO account in her name in a nationalized bank along with my mother. My mother also has a seperate Savings account in the same bank.
My question is:
(1) Should we ask the seller to make the cheque / draft in Favour of my sister or in favour of my mother (who is a tax payer)?
(2) Will we have to deposit the proceeds in the NRO account only?
(2) Is UD$ 1 million the maximum amount per financial year my sister repatriate?
Regards,
Sam
We are selling an immovable property in Pune, the proceeds of which go to my sister who is a PIO and she in turn wanto to repatriate it to her country of residence.
The property was in the name of my deceased father (he passed away in 1997), my mother and sister and we got his name removed from the property after his death. My sister has a NRO account in her name in a nationalized bank along with my mother. My mother also has a seperate Savings account in the same bank.
My question is:
(1) Should we ask the seller to make the cheque / draft in Favour of my sister or in favour of my mother (who is a tax payer)?
(2) Will we have to deposit the proceeds in the NRO account only?
(2) Is UD$ 1 million the maximum amount per financial year my sister repatriate?
Regards,
Sam
Vishal D Shah
(Expert)
03 October 2011
Hi Sam,
Assumed that property is sold to a resident.
Also it could be inferred that property was when purchased, it was purchased in INR & no foreign exchange has come in India.
Based on above to presumptions:
1) Preferable that cheque to be issued in name of your sister (for her share), since she has NRO account in India.
2) You have to deposit in NRO account. You may transfer the sale proceeds to NRE account by obtaining CA certificate on payment of capital gains tax in India. Also for repatriation same shall be required.
3) Yes you are correct. Cap is of USD 1 mn per year.
Regards.. cavishalshah @ gmail.com
Assumed that property is sold to a resident.
Also it could be inferred that property was when purchased, it was purchased in INR & no foreign exchange has come in India.
Based on above to presumptions:
1) Preferable that cheque to be issued in name of your sister (for her share), since she has NRO account in India.
2) You have to deposit in NRO account. You may transfer the sale proceeds to NRE account by obtaining CA certificate on payment of capital gains tax in India. Also for repatriation same shall be required.
3) Yes you are correct. Cap is of USD 1 mn per year.
Regards.. cavishalshah @ gmail.com
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Tax on Amount transferred in HUF Account
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
