vkginvest

I am an OCI in US. A builder is offering 4 apartments to me for allowing to construct an apartment complex in my plot in Andhra Pradesh. Can I repatriate the sale proceeds of those 4 apartments to US?

Thanks,

sheeshu

You can repatriate upto 1 million USD, in a FY, from sale proceeds of immovable assets (residential land,apartment etc) . However you may need to open an NRO account, if you dont have it already

Quoting from Reserve Bank of India (equivalent of US Federal Reserve) website

* Permissible credits to NRO account are transfers from rupee accounts of non-resident banks, remittances received in permitted currency from outside India through normal banking channels, permitted currency tendered by account holder during his temporary visit to India, legitimate dues in India of the account holder like current income like rent, dividend, pension, interest, etc., sale proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/ inheritance.

● The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/PIOs.

More details can be had at
Reserve Bank of India

vkginvest

Thank you for the reply. Per RBI guidelines, it looks like the repatriation of sale proceeds is restricted to not more than two residential properties. Can I still sell the 4 apartments (more like investment properties) and repatriate the proceeds?

Thanks,

sheeshu

I overlooked that .. You are going to have to transfer it under your spouses' / close relatives' name to circumvent that limitation. Also it is not clear if that limitation is for a certain duration or 2 properties in lifetime which would be odd.
Resident indians can gift nri upto 250k USD per year, see if you could use this clause
to tarnsfer sale proceeds somehow.
I would suggest to consult some professional to find out about that.

mkbonline

ment

Hey Guys,

I am newbie NRI Investor, trying to formulate my investment strategy. I plan to purchase multiple project in india in next 5 yrs and then sell and bring money back to Australia. I am surprised by this limitation for 2 residential properties !! Did you guys got some further? If this is actually a limitation, will it be better to buy in name of your mother/father then?

Thanks in advance