Fund trasfer to USA

R

Raninisha

Registered Users (C)
Hi

I had purchased a Flat in India, when I was a GC holder. I have an NRO and NRI account.

I want to know how to bring back my money once I sell my property . Can any one advice how this can be done leagally after paying taxes, should I pay taxes both in India and USA?. I want to sell the property after I get my US Citizenship.

Request your valuable replies.
 
I am not a tax specialist but my understanding is that the USA taxes you on worldwide income and gains as a US tax resident. Therefore if you sell an overseas property while you are a US tax resident you can be liable for tax on the gain in that property. Even worse the exchange rates in effect when you purchased and sold it can further increase that gain because of the conversion rates. The US will let you claim a foreign tax credit or deduction (with certain limitations) if you also need to pay Indian tax on the property. You probably need to consult a CPA to get help. This is a complex area.

As for transferring the money just use an inter-bank wire transfer and any reporting requirements for amounts above $10,000 will get taken care of by the US bank. Depending on the amount (eg if over $100,000?) you might be able to negotiate better exchange rates by contacting the foreign transfer department of your (hopefully cooperative) US bank.
 
Raninisha said:
Hi

I had purchased a Flat in India, when I was a GC holder. I have an NRO and NRI account.
--------------------Did you pay for that Flat from NRE account? Do you have letter from Bank that XYZ amount was paid to ABC by Check #.... if you have the proof of payment from your NRE account then it is simple and CA in India can help you. If you bought the Flat for 100000 and you are going to sell it for 200000 then you earned 100000 and you will pay tax on that amount in India, if you are going to sell after 3 years of purchase then Capital gain can be invested in India in Bonds or pay the tax and you can bring the money back. You pay the tax only on the profit or the money earned in India by sale.
if paid from NRO account still you can bring
I want to know how to bring back my money once I sell my property .
-------------if you bought the Flat with X amount and the money was paid from NRE account you can deposit that money in NRE account and bank can convert it in USD and can transfer to your US Bank. Your Bank in India can help you.
Can any one advice how this can be done leagally after paying taxes, should I pay taxes both in India and USA?. I want to sell the property after I get my US Citizenship.
-------------------------you can bring the money it is not problem.
Request your valuable replies.
Click to expand...

Below links may help
http://www.femaonline.com/index.htm

http://www.femaonline.com/fema/FAQ/...le_property.htm

http://www.nriinternet.com/INDIA/NRI information/NRIs to India.htm

http://www.rbi.org.in/scripts/FAQView.aspx?Id=33
http://india.gov.in/overseas/nri.php
http://groups.msn.com/r2iclub/general.msnw
http://groups.msn.com/r2iclub/gener...560131397030432
http://groups.msn.com/R2INRIFinanceAndInvestments
http://dipp.nic.in/nri_ready_recokner/Ready Reckoner For NRI_Final_2005.pdf
 
If he's a PR or US citizen the capital gains must be declared on a US tax return and tax paid. There may be a credit towards Indian taxes, depending on if a tax treaty exists.
 
the link has full info
http://www.mumbaipropertyexchange.com/nri_corner/bi_nribuying.asp


General permission has been given to non residents holding Indian passports and foreign citizens of Indian origin, whether resident in India or not, to dispose of by sale or inheritance immovable properties situated in India subject to certain conditions.
Non residents holding Indian passports and foreign citizens of Indian origin have been allowed to repatriate original investment in equivalent foreign exchange in residential/commercial properties after obtaining prior approval subject to a maximum of two houses under certain conditions.
No transfer of any immovable property exceeding the specified value for different cities can be effected unless particulars are filed with the appropriate authority of the Income Tax department within 15 days of signing the agreement.
As per a new scheme of capital gains tax with effect from 1993-94, instead of deducting from the proceeds of transfer, actual amount spent to acquire the asset or the amount spent on improvement or addition thereto, the inflation index adjusted cost will be deducted. Brokerage, legal fees and other expenses incurred in selling the property would be allowed as a deduction from the taxable capital gains.

Exemption From Capital Gains On Sale Of Residence
Capital gains arising on transfer of a residential house, comprising buildings or land appurtenant thereto, is exempt if the amount of capital gains is utilized in acquiring another residential house, either by purchase or by construction. The exemption cannot be claimed for vacant land as it is niether a residential house nor income therefrom is chargeable. The conditions required to be fulfilled to claim exemption here are :
the capital asset being transferred is a residential house, including self occupied house
income from the house is chargeable under the head - Income from house property
the house is a long term asset
the tax payer purchases or constructs a new residential house within the time specified
 
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