Official transfer of money from India to overseas
Thank you,kindly give your advice, how to transfer money from India to overseas.i am a Nri foreign citizen.i do get some dividends in India.iam an assesse in Indian income tax .i have invested money in 1978 in public and private companies
,regularly I lodge income tax return. I am going to sell my small property, I have bank account in India.iwould like to do on line by myself to get back money .i am senior person .
Asked 3 years ago in Income Tax from Telangana, Telangana
First answer to your first question i.e. how to transfer money from India :
An NRI can transfer out of the NRO account subject to production of documentary evidence in support of acquisition of such funds along with a certificate by a chartered accountant in Form 15CA and 15CB. The transfer will be subject to payment of applicable taxes. So far the amount being transferred represents balances for which tax has already paid or exempt there shouldn’t be additional tax.
Second question transfer of funds by selling property
Profits earned by selling property in India will be liable to Capital gain i.e the difference between the sale value of the property and its cost of purchase.
Short-term capital gain i.e. property held for less than 36 months will be taxed at normal slab rates and long-term gain will be taxed at 20%. If a property is sold after being held for more than three years and the proceeds are reinvested for purchase of a new residential property, then the capital gains will be exempt to the extent of the amount reinvested. The exemption is subject to the new property being purchased within a year before or two years from the date of sale, or if new property is being constructed within three years from the date of sale.
After paying the above applicable taxes you can transfer the amount outside by obtaining form 15CA and 15CB.
If you sell your prope rty in India, it attracts capital gains tax on capital gain derived by you.
So kindly determine if any liability to capital gains tax arises then arrange to pay the tax and file the income tax return offering the income to tax. And based on this you may file form no 15 CA with Income tax department through some chartered accountant and obtain a certificate form no 15CB from the chartered accountant and present these documents to your banker for transfer of money from India to abroad. Further there are limits to sending money under fema on sale of property which was 1million dollars in a year and this information will be given by your banker who is arranging the funds transfer.
From above , it seems that you are a resident of India . You may be foreign citizen but considering the FEMA and Income Tax , you may be resident . However considering you a resident our advice are as under -
Since you are filling the return regularly , you must be showing the dividend as income . The dividend income is exempt in the hands of the shareholder . The capital gain arising from the transfer of the capital assets , can very well repatriated after paying the tax .
So you can very well repatriate all your income from India to outside India , provided they are tax paid .
CA, New Delhi Area, India
You need to submit a CA certificate along with the forms prescribed by your bank.