We are selling an immovable property in Pune, the proceeds of which go to my sister who is a PIO and she in turn wanto to repatriate it to her country of residence.
The property was in the name of my deceased father (he passed away in 1997), my mother and sister and we got his name removed from the property after his death. My sister has a NRO account in her name in a nationalized bank along with my mother. My mother also has a seperate Savings account in the same bank.
My question is:
(1) Should we ask the seller to make the cheque / draft in Favour of my sister or in favour of my mother (who is a tax payer)?
(2) Will we have to deposit the proceeds in the NRO account only?
(2) Is UD$ 1 million the maximum amount per financial year my sister repatriate?
03 October 2011
Hi Sam, Assumed that property is sold to a resident. Also it could be inferred that property was when purchased, it was purchased in INR & no foreign exchange has come in India.
Based on above to presumptions: 1) Preferable that cheque to be issued in name of your sister (for her share), since she has NRO account in India. 2) You have to deposit in NRO account. You may transfer the sale proceeds to NRE account by obtaining CA certificate on payment of capital gains tax in India. Also for repatriation same shall be required. 3) Yes you are correct. Cap is of USD 1 mn per year.
CAclubindia
