Here’s How NRIs Can Repatriate Funds Outside India
While there are no restrictions on the number of properties a non-resident Indian (NRI) can buy and hold in India, there are certain regulations that are applicable on transfer of immovable property and repatriation of funds outside the country.
MakaaniQ shares points you must know about, in case you are planning to transfer any property to anyone in your family or if you want to repatriate funds to the country where you are working.
First, you can transfer any property in India, whether commercial or residential, to residents, other NRIs or Person of Indian Origin (PIO), except that an agricultural land, farm house or plantation property can be transferred to an Indian resident only.
Conditions for remittances out of India
NRIs and PIOs can remit the funds raised by the sale of immovable property in India, other than agricultural land, farmhouse and plantation property. However, it is subject to the following conditions:
- The property being sold was acquired as per the foreign exchange regulations applicable during that period
- The amount being repatriated cannot exceed the cost of the sale proceeds from the transaction
- Also, you must be aware that only the sale proceeds from maximum two residential properties can be repatriated
- Furthermore, the maximum amount of repatriation of funds from a Non-Resident Ordinary (NRO) account is capped at $1 million per financial year
- All the remittances made out of India must be done after settling all the applicable taxes and other charges
- If you had acquired a property by way of a gift, the funds received from selling the same property must be deposited in an NRO account
- What about rental income from a property in India? There is no restriction on repatriating this income as long as the total proceeds are well within the set limits of $ 1 million a year
As far as buying property is concerned, you can make payments only through authorised banking channels, including NRO, Non-Resident External (NRE) or Foreign Currency Non-Resident (FCNR) accounts.
Never make a payment for property transactions through any other means like traveller’s cheques or foreign currency.