NR [person of indian origin] booked a flat with a property dealer & after few months she wants to cancel the booking agreement & tht builder will issue cheque in Rupees & such ch is deposited in NRO a/c
now the problem is in master circular on transfer of immovable property dated
it is stated tht
6. Refund of purchase consideration
Refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any (net of income tax payable thereon) may be allowed by the Authorised Dealers by way of credit to NRE/FCNR (B) account, provided the original payment was made out of NRE / FCNR (B) account of the account holder or remittance from outside India through normal banking channels and the Authorised Dealer is satisfied about the bonafides of the transaction.
but nowhere they've mentioned regarding NRO a/c
In Master Circular No. 3 /2010- 11 on NRO a/c it is stated as" legtimate dues of the account holder" as permissible credit
so if we go by the circular on NRO a/c there is no problem.But if
we go by circular on transfer of immovable property.there can be two possibilities
1. since point 6 in master circular [transfer of immovable property] odesn't mention abt nro a/c it means it's not permissible
2. main intention of law is no taxable income of nr should go out of india w/out tdstherefore by default [going by master circular on NRO a/c]it would be permissible
wht forms require to be submitted as per fema & IT act