The process of repatriation of funds after you sell a property in India will vary depending on a number of factors. My brother bought a house in Delhi, and two years later, he shifted to Canada. He sold
the property for USD 2 million net of taxes but he could only repatriate sale proceeds up to a limit of USD 1 million per year. Let me explain in detail how to repatriate money after selling a property in India.
What are the Rules for Repatriating Property Sale Deeds?
I found some limitations with respect to the repatriation of funds and it depends on your residential status, the method of acquiring property, and the source of funds. From what I’ve observed in my brother’s case, I have shared some key considerations below.
Property Purchased as an RI
If you happen to have a similar case to my brother and had bought a property before becoming an NRI, you can repatriate sale proceeds only up to a limit of USD 1 million per financial year. (April-March) If you wish to remit more, you must get an approval from the RBI by applying through your authorised bank.
Property Purchased as an NRI
My brother told me for properties purchased and sold as an NRI, the repatriation limits will depend on the source of funds used to buy the property. Now, there may be two cases here.
Buying property using your NRE/FCNR (B) accounts or with foreign currency: You can repatriate the entire sale proceeds of the property.
Buying property using Indian currency or your NRO account: Repatriation is limited up to USD 1 million per financial year. If you wish to repatriate more, you need approval from the RBI.
Property received as a gift
In this case, you can repatriate the sale proceeds up to USD 1 million per financial year.
I also learned that if you want to repatriate by selling more than two residential properties in your lifetime, you must get approval from the RBI through your bank.
I hope this was insightful.
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How can I repatriate money from the sale of property in India? What all documents are needed from my end?
Snigdha Ganesh
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1
4 Year
2020-11-18T12:00:06+00:00 2025-01-03T12:02:20+00:00Comment
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