What are the provisions relating to Repatriation of sale proceeds of immovable property?

Jan 02 2019
Property acquired by the way of Purchase :
  • An NRI or PIO or his successor shall not, except with the prior permission of Reserve Bank, repatriate outside India the sale proceeds of any immovable property (Sale / Rent).
  • In the event of sale of property other than agriculture land/ farm house/ plantation property in India by a person resident outside India being an NRI or PIO, the authorized dealer may allow repatriation of sale proceeds out of India.

The property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these regulations.

The amount repatriated does 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.

In case of residential property, the repatriation of sale proceeds is restricted to max two such properties

Property acquired by the way of inheritance/ legacy/out of rupee funds:

An NRI or PIO can remit an amount not exceeding USD 1,00,000 per financial year out of the balances held in the NRO accounts/sale proceeds of the assets by the way of purchase/ assets acquired by the way of inheritance/ legacy out of rupee funds subject to production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and tax clearance/ no objection certificate from Income Tax Authority for the remittance.

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