There are many Non Resident Indians (NRIs), who work and live abroad. They also tend to inherit property, from parents and other relatives living in the country. At times, they may want to sell this property.
Is permission needed?
A general permission has been granted for repatriating proceeds and there is no specific permission that is needed. However, there are certain restrictions on this permission that is granted. The permission granted is subject to the following:
1) The amount should not exceed USDollar 1 million
The first criteria that needs to be fulfilled by the NRI is that the amount should not be beyond USDollar 1 millon, in the first financial year.
2) Original sale deed
The concerned NRI will also need the copy of the original sale deed. He must also procure a no objection certificate from the Income Tax authorities, if he wishes to repatriate the sum from the sale of the inherited property.
3) For more than one installment
Where the remittance is for more than one one installment, the remittance of all such installments shall be made through the same Authorised Dealer.
4) Documentary evidence is needed
There would be a need for documentary evidence of such inheritance and a certificate from a Chartered Accountant, in the prescribed form of the Central Board of Direct Taxes. All such amounts that are remitted will be from the NRO account of the NRI.
It is important to remember that a NRI and Persons of Indian Origin can also rent out such a property, which has been inherited. All the other norms, including the credit of rent into the NRO account of the individual shall apply.
Since it is income earned in India, the concerned NRI would also be liable to pay tax, as per the existing provisions of the Income Tax Act.