Important Issue For Repatriation Of Sale Proceeds Of Residential Or Commercial Property Purchased By NRI or PIO

 NRI PIO can repatriate the sale proceeds of immovable property, provided property was acquired out of foreign exchange sources i.e. remitted through normal banking channels or by debit to NRE or FCNR (B) account.  The amount to be repatriated should not exceed the amount paid for the property.  Repatriation of sale proceeds of residential property purchased by NRI or PIO out of foreign exchange is restricted to not more than two properties.

 Capital gains may be credited to the NRO account from where the NRI/PIO may get back an amount up to USD one million, per financial year, as discussed below. 

 If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement.

NRI or PIO can repatriate the proceeds in case the sale proceed was deposited in NRO account.  NRI/PIO may repatriate up to USD one million per financial year, which would also include the sale proceeds of immovable property.

 If a Rupee loan was issued to NRI or PIO from Authorized Dealer or housing finance institution for purchase of residential property, NRI or PIO can repatriate the sale proceeds of such property, provided the loan has been subsequently repaid by remitting funds from abroad or by debit to NRE or FCNR (B) accounts. For more information, please refer to A.P. (DIR) Series Circular No.101 dated 5.5.2003.   

There is restriction on number of residential properties in respect of which sale proceeds can be repatriated by NRI or PIO.  Sale proceeds of not more than two residential properties can be repatriated.

The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorized Dealer and payment of applicable taxes.

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