NRIs – How much Fund can they Repatriate?

We live in a society where younger generation prefer going abroad for job or higher studies and make their settlement in foreign countries. Many of them get citizenship's in other countries and keep their families in their homeland-India.  The other side of this situation is that they find it easy to live in flats in Chennai other than individual house since being a senior citizen, it is essential to get easy access to companionship, medical care, safety etc.

As a result, many senior citizens are selling their independent homes and moving into apartments in Chennai. In future, it goes without saying that a substantial portion of sale proceeds will go to their NRI children. Sometimes, ancestral property is also received by Non-Resident Indian through partition deeds from parents or grandparents. Most NRIs who have settled abroad would send back these funds from sale proceeds. This money will be useful for higher education of kids or to buy flats for sale in Chennai or in their own homeland in India.  

Additionally, with most countries tightening up on foreign investments, it has become a hassle to maintain a property in foreign country since one should report the property details to tax authorities in both countries. Majorly, residents belonging to USA face this dilemma since they should report the details of their foreign financial properties that are available in excess of certain prescribed dollar limits. Thus, it is important to be aware of the formalities involved in bringing the money from India to abroad since it may lead to movement of Forex and is governed by RBI and FEMA regulations.

General permission is required for NRIs to send back funds got from immovable properties (be it apartments for sale in Chennai or other places of India) from a resident in India. Further, the NRIs can send amount that won’t exceed 1 million per financial year, on producing the evident documents like acquisition of assets, certificate from experienced chartered accountant etc. The sale proceeds of immovable property (flats in Chennai or other Indian places) can be acquired through way of birthright and the amount should be credited to NRO account only. From NRO account, NRIs can remit up to 1 million per year upon the satisfaction of authorized dealers and payment of application taxes. Selling properties including individual house, apartments in Chennai and other Indian parts is never an easy task, no matter how greens the grass is on the other side.