Capital Gain in the case of NRI

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Manoj Kumar Karna (Querist)
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13 October 2009
My clients is NRI and currently staying in USA. He has property in India and want to sale the property in India. After paying capital gain tax, he want to transfurred fund from India to USA. My question is what is the procedure?.

Juzer Sadikot

Juzer Sadikot (Expert)
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13 October 2009 Dear Manoj,

NRI residing in US can sale the property only to Indian Citizen residing outside India and Residents of India. The sale proceeds (actual or as per secion 50C) shall attract tax deduction at source u/s. 195 and buyer shall be under obligation of such compliance. The sales proceeds net of TDS (if deducted) shall be deposited first to his NRO A/c and then your client needs to follow process of Repatriation. Repatriation can be done upto USD 1 Million per F.Y. by submitting following docs;

1) Form 15CA
2) Form 15CB
3) Form A2
4) Certain Declarations (depending on Bank)
5) Sales Deed, purchase deed, TDS Certi, PAN, PP etc.

If you are not comfortable with above procedure or any part, I can help you more.

Thanks