Transferring money to Sweden

Hi,

- Yes you can transfer money from India to Sweden after payment of Income tax in India in respect of property.

- Buyer of property needs to deduct TDS @ 20.8% on the sale value of the property i.e. Rs.35 lacs.

- File ITR and claim credit of TDS deducted.

- Buyer needs to file Form 15CA and 15CB.

- Buyer can deposit funds directly into NRE account. If it will be transferred in NRO account then you need Form 15CA and 15CB again to transfer from NRO to NRE account.

- Buyer needs to obtain TAN and file TDS return accordingly. The entire process is online.

Thanks

Since you are an NRI you first need to find the capital gain.

I am assuming that you have held property for more than 3 years and so it would be a capital long term capital gain which is calculated as under:

Sale consideration less indexed cost of acquisitions.

Indexed cost of acquisition is cost of purchase of property and multiply it by cost inflation index available at income tax website.

So you have to pay either 20% of such amount as tax in India and in your case since you are a NRI your TDS will be deducted by the purchaser of property for which you need to get the certificate from the local income tax officer who will calculate your capital gain amount and TDS amount and you need to give such certificate to the purchaser and then you can easily take the amount out of India once the tax is paid.

If you don't want to pay tax you can invest the capital gain amount either in house property in India or some bonds under section 54EC of the income tax act.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi Edward,

Thanks for the query !

You can repatriate the money outside India by taking form 15 CA and CB from the chartered accountant and submit the same to the bank. They will then allow the transfer from NRO to NRE account from where you can utilize the money out of India.

Please feel free to touch base with me in case you need assistance.

Thanks

Damini

Hi Edward,

Hope you are doing well !

In order to remit funds from the NRO account, you would need to submit two documents: Form 15 CA and Form 15 CB. The purpose of both these documents is to ensure that taxes are collected on the funds before they are remitted abroad as it becomes difficult to recover taxes at a later stage. Both these forms consist of more or less the same information. The only difference is that Form 15CA is an undertaking by the NRI to remit funds while Form 15 CB is a certification of the information by a chartered accountant.

Thanks & Regards,

Payal Chhajed

Hi Edward,

First of all you will need to pay taxes on the capital gains on account of the asset sold. The buyer will need to deduct TDS @ 20.8% on the sale value of the property.

You would also need to submit Form 15 CA and Form 15 CB so that you can repatriate the funds.

Hope that clarifies.

Regards,

Nikhil.

Hi,

1. You will need to pay taxes on long term capital gain @ 20.8%.

2. Buyer will deduct tds on sale consideration.

3. Form 15 CA & 15 CB needs to be submitted.

Hi Edward,

You will have to pay capital gain tax when you sell your house in India.

After paying the 20% tax on capital gain amount, you can repatriate the money to Sweden.

Hi

On selling property ,buyer will be responsible to deduct TDS and you can claim credit of the same by filling ITR in India.

Bank will ask for form Form 15CA and 15 CB for transferring money from NRO to NRE account.You can take this form from chartered Accountant.

Hope it helps

Hi Edward,

You are liable to pay tax on capital gain @ 20%, when you sale your house in India. you can repatriate that money to Sweden after payment of taxes and necessary compliances such as Form 15CA/CB.

You can sell the property in India and repatriate the money after complying with the following process:

1) The buyer needs to deduct @ 20.8% on the sale proceeds and can remit the net amount to your NRO a/c

2) You need to compute your tax liability towards capital gains, which will be normally less than the TDS. If you want you can file an application before your assessing officer and request for issue of certificate for deduction of tax at lower rate. The buyer can then deduct at lower rate instead of 20%. However this process may take 2 to 3 weeks and follow up with the Income Tax department.

3) You need to a certificate from a Chartered Accountant in Form 15CB for your outward remittance. You then need to submit 15CA along with 15CB to the Income Tax Department electronically. On the basis of these Forms, your bank will allow remittance to your overseas account.

4) You need to file Income Tax return in the next year between April to July. You'll get refund of TDS to the extent of excess of your tax liability, if any.

Dear Sir, the selling of property in India and purchase of property in Sweden can be done. You need to comply with certain tax laws & procedures applicable in this case:

a) You need to compute the actual gain/loss incurring on this transaction,

b) Then, if applicable, you need to pay tax on the above transaction,

c) Then, to claim the credit of the amount paid in India, you need to comply with the DTAA provisions, applicable in this case and file your Income Tax return in India.

d) While repatriating the money to Sweden, you need to obtain a certificate from a Chartered Accountant in India

e) And some small procedures apart from the above.