• Repatriation of inherited property sale proceeds

I am an NRI (US Citizen / OCI holder) who inherited a flat in Pune from my mother, after she passed away a few years ago. She died intestate, i.e. without leaving any will. 

I have now sold the flat and the proceeds are deposited in my NRO account by the buyer, after deducting the required TDS. 

My question is: what documents are required by banks / RBI in order to approve remittance of this money to the US? Is copy of sale deed enough or is a succession certificate also compulsory? I never applied for succession certificate, since this was not needed for me to get conveyance of the flat to my name or to conclude the sale process.
Asked 2 months ago in Capital Gains Tax

Form15CB,15CA and A2. If required, share copy of sale deed

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

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The specific documents required by banks and the Reserve Bank of India (RBI) for approving remittance of money to the US may vary depending on the purpose of the remittance, the amount involved, and the regulations in place at the time. However, some common documents that may be required include:

  1. Remittance Application Form: This is a standard form provided by the bank that needs to be filled out by the individual or entity making the remittance.

  2. Know Your Customer (KYC) Documents: These include identity proof, address proof, and PAN (Permanent Account Number) card. Passport, Aadhar card, voter ID, or driver's license can be used for identity proof, while utility bills or bank statements can be used for address proof.

  3. Purpose of Remittance: Depending on the purpose of the remittance, additional documents may be required. For example, if it's for education fees, documents related to admission to the educational institution may be necessary. If it's for investment purposes, documents related to the investment may be needed.

  4. Foreign Exchange Declaration Form (FED Form): This form may be required by the RBI for certain types of remittances to comply with foreign exchange regulations.

  5. Income Tax Returns: In some cases, especially for larger remittances, banks may require copies of income tax returns to verify the source of funds.

  6. Form 15CA and 15CB: These are required for remittances under certain circumstances as per Income Tax Act, 1961. Form 15CA is a declaration of the remitter and Form 15CB is a certificate issued by a Chartered Accountant.

  7. Supporting Documents: Any other documents that may be necessary to support the purpose of the remittance or to comply with regulatory requirements.

It's important to note that regulations regarding remittance can change over time, so it's advisable to check with the specific bank and relevant authorities for the most up-to-date requirements. Additionally, different banks may have slightly different documentation requirements, so it's recommended to inquire directly with the bank facilitating the remittance.

Damini Agarwal
CA, Bangalore
407 Answers
31 Consultations

5.0 on 5.0

They would need a Form 15CB and 15CA from your Chartered accountant to remit this account and your CA would need the sale deed (in your name) and purchase deed (in name of your mother), to calculate Capital gain.

 

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Thank you.

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

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To repatriate the sale proceeds of an inherited property from India to the USA, as an NRI (US Citizen/OCI holder), you need to adhere to the regulatory requirements set forth by the Indian banks and the Reserve Bank of India (RBI). Here is a more structured and detailed explanation of the process and the documents required:

Documentation and Process for Repatriation:

  1. Remittance Application Form: You need to fill out this form available at your bank, providing details about the remittance you wish to make.

  2. KYC (Know Your Customer) Documents: These include proofs of your identity and address. Acceptable identity proof could be your passport, OCI card, driver's license, etc., while address proof can be utility bills or bank statements.

  3. Proof of Legal Ownership and Inheritance: Since you inherited the property and there was no will, you didn't need a succession certificate for the transfer or sale of the property. However, for remittance purposes, you need to establish your legal right over the funds. The sale deed showing your name as the seller should suffice, but it's wise to have all documents that establish your inheritance and ownership (e.g., death certificate of the deceased, legal heir certificate if available, etc.).

  4. Form 15CA and 15CB: These forms are crucial for the remittance of funds exceeding a certain threshold and help in ensuring tax compliance. Form 15CA is a declaration by the remitter, stating the details of the payment, recipient, and purpose, while Form 15CB is a certification from a Chartered Accountant confirming the taxes have been considered. For the CA to issue Form 15CB, you need to provide the sale deed and possibly the purchase deed of your mother.

  5. Form A2: This form is required for foreign exchange transactions and remittance outside India. It includes details about the remittance and the remitter and ensures compliance with foreign exchange regulations.

  6. Bank's Internal Documents: Some banks may have their internal documentation process to ensure compliance and risk mitigation. It's essential to consult your bank for any specific requirements they might have.

By providing these documents and following the bank and RBI guidelines, you should be able to remit your funds to the US.

 

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
212 Answers
4 Consultations

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