Can The Funds Received From Property Sale In India By an NRI / PIO / OCI Be Deposited In The NRE Account?
Posted on October 01 2020
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First and foremost, the funds received from the property sale cannot be directly credited to any NRE Account. Hence the funds will be credited to the NRO account only.
Once the property sale proceeds are deposited in the account your process for the repatriation begins.
How to transfer funds from a NRO to NRE Account in 6 easy steps?
Initially, the RBI did not allow the transfer of funds from the NRO to the NRE Account, even though transfer from NRO account to any overseas country was permitted. However, the RBI has finally allowed the transfer of funds from the NRO to the NRE account. The funds once deposited in the NRE account, can be freely repatriated by a simple Bank transfer to any account anywhere in the world.
The steps for making the transfer from the NRO to the NRE Account for a Non Resident Indian or a Person of Indian Origin, for funds received in a property sale in India, are as follows:
·Appoint a Chartered Accountant
·Compute the Capital Gains Tax
·Do Tax Planning and make the Tax payments
·Get Tax or RBI Clearance (if required)
·Certifications (15 CA and 15 CB)
·Authorised Dealer or Banker
Once upon a time (sounds like a fairy tale, but it is very true), money and foreign currency, could not be transferred abroad from India without going through a lot of red tape, at times you were required to take permission from the MHA/Finance directly. However, things have now changed for the better. Money that is legally owned and accounted for, can be remitted abroad through normal banking channels, in a legal manner through laid down processes and after proper documentation.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.
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