Repatriation of sale proceeds from immovable property?

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Are there any limits for repatriation of proceeds from sale of immovable property in India?

 

RBI guidelines says as follows:

 the amount to be repatriated should not exceed:

· the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or

· the amount paid out of funds held in Foreign Currency Non-Resident Account, or

· the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property;  

 So, does it meant that repatriation will be allowed only to the extent of consideration paid for acquiring that property? What about the sale proceeds received over and above the acquisition value? Please Help. Thanks

 

Replies (1)

In case of residential property, Repartition of fund is allowed up to amount paid for acquisition of the immovable property. However, repartition is restricted to maximum two properties and also it’s allowed only for residential property.

In the case of the sale proceeds received over and above the acquisition value and in case of sale proceeds from other immovable property, as per the RBI guideline an amount equivalent to USD 1million can be remitted outside India in a financial year after providing a charted accountant certificate to the authorized dealer that the tax has been paid for the amount being remitted. In your case, if the amount is more than USD 1Million then it cannot be remitted in a single year.


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