REPATRIATION
NRls remit their profits lo India from their Savings abroad but would like to enjoy the flexibility or repatriating the same in case of adversity. With duo consideration, the government of India has provided for repatriation or funds from the non-resident’s rupee or forex resources.
Therefore, RBI came up with guidelines for the repatriation of funds from or to India:
Income Repatriation
Every income whether it is In the nature or interests, dividends, rents, Mutual Fund distribution from any type of deposits. Investments or properties are permissible for repatriation net or income tax in India. This includes income earned from business in India by an NRI as partner, proprietor, or joint venture entity.
Immovable Property
The sale of the property is permitted for repatriation as under:
Exempted from RBI authorization:
- Property owned for more than 10 years: NRIs/PIOs are allowed to repatriate the funds held in their Non-Resident Ordinary Rupee Account (NRO) u to USS 100,000 a year where sale proceeds of immovable property held by them for the period of not less than 10 years is subject to payment of taxes.
- The seller purchased the property as per the requirements of foreign exchange law applicable at the time of acquisition.
- If the property is on sale after 3 years of date of purchase or the final payment of Purchase consideration whichever is later. However, the above period of 3 years is not applicable in case of such property sold B NRI/PIO on or after 19.08.2002
- Further exemption from RBI authorization comes only up to the value of purchase consideration paid in Foreign Exchange.
RBI permission essential for NRI who had purchased immovable property in India, and not eligible under clause I above. Sale of such immovable property can be repatriated by attaining special authorization of the RBI on the ground of adversity.
Inheritance, Legacy or Bequest
The sale proceeds or realization of assets can be permitted for repatriation only under the following grounds.
Exempted from RBI Permission:
NRIs/PIOs are allowed to remit up to US$100000 per calendar year out of the assets in India obtained by way of inheritance/legacies. This increased the overall limit (including remittances of proceeds of immovable property held for more than 10 years, remittance for education and medical purposes) to USS 1 million.
RBI permission essential:
Besides the clause I seeking exemption from RBI authorization and for any other possessions, repatriation is allowed only after special authorization of the Reserve Bank of India on definite reasons such as adversity and subject to conditions s specified in the permission.
Other assets:
The sale-profits or realization of NRI assets is allowed for repatriation as follows:
- Deposits with Banks or Companies,
- PF,
- Matured fife Insurance claims,
- Sale-profits from shares & securities
- Other assets or Immovable Property
Subject to conditions as specified in the permission of RBI.