A NRI inherited Village Agricutural property arround 10 years back SOLD THE SAME for 50 Lakhs 2 months back.
He wants to repatriate the proceeds to USA for part finance/purchase of New residential Property there immediately.
Whether the person liable to pay any Income Tax in India?
Thank you so much for advice and kind support.
Valerian DSouza
If the said land is situated in a Rural area and has been used for Agricultural purpose, then capital gain shall not arise on the sale of such land.
As per my knowledge, NRI can repatriate the sale proceeds to USA. He shall also take permission of RBI before repatriating the amount.
Sale of agricultural land situated in rural areas is not attracted to Income tax.So the NRI need not pay any tax on such sale.
If the land falls under the definition of rural land as per income tax act, then there would not be any capital gains tax on the same.
NRI Would be eligible for repatriation of funds upto USD 1 million in one financial year without any approval of RBI.
Form 15CA / 15CB needs to be submitted to the bank along with some application/ request letter for repatriation of the funds.
Do write in case of any further queries.
CAclubindia
