Hi,
I am an NRI in the US. I had bought a property in India when I was working in India with my India funds. Now, I am in the US and I am selling my property in India (in Bangalore). The proceeds from the sale will come to my NRO account in India.
I have a bunch of questions:
1) Can I repatriate the proceeds from sale to the US? If yes, what is the process of doing so?
2) Can someone suggest a CA in Bangalore who might help do this?
3) What are the tax implications in the US of doing so? Will this add to my income in the US for the year even if I have paid tax on this in India?
Any help is much appreciated.
Thanks
Sumit
Repatriation and Tax - Please help
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kkassociate
- Posts: 173
- Joined: Mon Oct 05, 2009 4:45 pm
Repatriation and Tax - Please help
Hi Sumit,
The reply to your questions is as under:
1) Yes you can repatriate upto $1 Million dollar a year subject to payment of taxes.
2) We have our network partners who are practising chartered accountants in Bengaluru.
3) The amount of capital gains arising out of selling your house will be taxable in India as well as USA. In India you can get the exemption to the capital gains tax if you invest the amount in the new property and other instruments specified in Section 54 of the India Income tax Act, 1961. If you do not wish to do so and want to transfer the money to India you need to pay the taxes to the Income tax department, Get a 15 CB certificate signed by a practising Chartered Accountant, submit it to your bank and your bank will transfer the money to the account you wish to. After the end of financial year you will have to file the return of income to the department declaring the capital gains transaction arising out of the sale of house. Also there are various timelines which you need to follow once you have sold the house.
We assist in providing both US and India tax filings from Pune. You can send us the complete details on [email][email protected][/email] or visit us at www.kkassociate.com
Regards,
KKA
The reply to your questions is as under:
1) Yes you can repatriate upto $1 Million dollar a year subject to payment of taxes.
2) We have our network partners who are practising chartered accountants in Bengaluru.
3) The amount of capital gains arising out of selling your house will be taxable in India as well as USA. In India you can get the exemption to the capital gains tax if you invest the amount in the new property and other instruments specified in Section 54 of the India Income tax Act, 1961. If you do not wish to do so and want to transfer the money to India you need to pay the taxes to the Income tax department, Get a 15 CB certificate signed by a practising Chartered Accountant, submit it to your bank and your bank will transfer the money to the account you wish to. After the end of financial year you will have to file the return of income to the department declaring the capital gains transaction arising out of the sale of house. Also there are various timelines which you need to follow once you have sold the house.
We assist in providing both US and India tax filings from Pune. You can send us the complete details on [email][email protected][/email] or visit us at www.kkassociate.com
Regards,
KKA
Repatriation and Tax - Please help
Dear KKA,
In addition to Sumits question.
1) If the sale proceeds are to be used in Buying a house in USA. Will there be capital gains tax to be payable? Do you see any other tax implications on India and USA. Assume - If I sell a house for 50 Lakhs and deposited it in NRO account. Can I bring the full amount to US? Suppose the property was bought for 20 laks 5+ years ago.
2) Will the house in USA need to be purchased before doing such a transfer from India?
3) Can such a transfer be done on selling 2 properties in India? and buying one in USA?
Regards,
Lalit
In addition to Sumits question.
1) If the sale proceeds are to be used in Buying a house in USA. Will there be capital gains tax to be payable? Do you see any other tax implications on India and USA. Assume - If I sell a house for 50 Lakhs and deposited it in NRO account. Can I bring the full amount to US? Suppose the property was bought for 20 laks 5+ years ago.
2) Will the house in USA need to be purchased before doing such a transfer from India?
3) Can such a transfer be done on selling 2 properties in India? and buying one in USA?
Regards,
Lalit
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kkassociate
- Posts: 173
- Joined: Mon Oct 05, 2009 4:45 pm
Repatriation and Tax - Please help
Hi Sumit,
The reply to your query is as under:
In a case been heard in the Ahmedabad Appellant Tribunal, a new house was constructed in USA and exemption was claimed under section 54F, the Ahmedabad Tribunal after going into the Memorandum explaining the provisions of section 54F ruled that, "as the exemption was granted with a view to encourage house construction, this would naturally mean that house construction should be in India and not outside India". It therefore appears to me that, assessees should exercise caution, before deciding to claim exemption for investment in house property abroad.
To transfer the funds after selling the property you need to pay the taxes as per applicable rates provide the ceritificate of practising chartered accountants to your bank and your will be free to take the proceeds of such sale with you outside India.
We provide assistance in both US and India tax filings and Planning. You can email us at [email][email protected][/email] or visit us on www.kkassociate.com
Regards,
KKA
The reply to your query is as under:
In a case been heard in the Ahmedabad Appellant Tribunal, a new house was constructed in USA and exemption was claimed under section 54F, the Ahmedabad Tribunal after going into the Memorandum explaining the provisions of section 54F ruled that, "as the exemption was granted with a view to encourage house construction, this would naturally mean that house construction should be in India and not outside India". It therefore appears to me that, assessees should exercise caution, before deciding to claim exemption for investment in house property abroad.
To transfer the funds after selling the property you need to pay the taxes as per applicable rates provide the ceritificate of practising chartered accountants to your bank and your will be free to take the proceeds of such sale with you outside India.
We provide assistance in both US and India tax filings and Planning. You can email us at [email][email protected][/email] or visit us on www.kkassociate.com
Regards,
KKA
Repatriation and Tax - Please help
Dear KKA,
I am an NRI and I do hold an NRE account. If I would like to repatriate money from NRE account to the US, I was told that I can do that without any issues/tax implications. Please correct me if I am wrong.
One of my uncles is planning to give me some money from his bank deposits in India. How can I repatriate this into the US? Do I have to pay any taxes either in India or US? Is there any cap on the amount that I can repatriate to the US? Appreciate your inputs.
Thank you,
PKSD.
I am an NRI and I do hold an NRE account. If I would like to repatriate money from NRE account to the US, I was told that I can do that without any issues/tax implications. Please correct me if I am wrong.
One of my uncles is planning to give me some money from his bank deposits in India. How can I repatriate this into the US? Do I have to pay any taxes either in India or US? Is there any cap on the amount that I can repatriate to the US? Appreciate your inputs.
Thank you,
PKSD.
Repatriation and Tax - Please help
Dear pksd,
You can repatriate money from your NRE account provided taxes are paid on the relevant income portion(if any). Normally NRE account Scheme doesn't allow incomes to be credited to NRE account apart from certain incomes.
Your uncle can give the money under the Liberised Remittance Scheme which can be directly transferred to your account India.
Anuj
femaquery[at]gmail.com
You can repatriate money from your NRE account provided taxes are paid on the relevant income portion(if any). Normally NRE account Scheme doesn't allow incomes to be credited to NRE account apart from certain incomes.
Your uncle can give the money under the Liberised Remittance Scheme which can be directly transferred to your account India.
Anuj
femaquery[at]gmail.com