13 April 2011
My relative sold an ancestral property, which had other members of the family as coowners. His sister (NRI) stays abroad. Capital gains on sale of property is worked out and paid and is assessed in India.
Now the query is Can the relative remit sisters share in the proceeds of the property to her abroad in Foreign Currency? If yes, What is the procedure? Under ITax Act whether 15CA & 15CB is mandatory as the relative does not have TAN and the amount being repatriated has already suffered tax. What are the permissions to be obtained under FEMA or RBI. Request the experts to guide me on this ASAP. Thanks
01 August 2011
Dear Sir, Can you please through some light on the manner in which capital gain has been assessed and paid in India. The following is applicable in your case. (1) The sale proceeds can be repatriated, (2) Subject to US $ 1,000,000 (US Dollar One million only) per financial year (3) Subject to production of documentary evidence in support of inheritance or legacy of assets by the remitter (4) Subject to 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. For detailed discussion on this visit the link :- http://rbidocs.rbi.org.in/rdocs/notification/PDFs/04MA290611FL.pdf
Please be free to write for further clarification. Regards, CA. Sudha G. Bhushan Sudhag999@gmail.com
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