A-It is assumed that you are a non-resident Indian (NRI) currently residing in the UAE and the property which you intend to sell is located in India. Among the applicable policies are the Foreign Exchange Management Act of 1999 (Fema); the regulations of the Foreign Exchange Management (acquisition and transfer of immovable property in India) Regulations of 2000 read with Master Circular No. 4/2013-14; and the Foreign Exchange Management (remittance of assets) Regulations of 2016 issued by the Reserve Bank of India (RBI).
It may be noted that through your Non-Resident Ordinary (NRO) bank account, you may remit up to US$1 million out of India, with the amount representing the sale proceeds of the property acquired by way of inheritance/legacy. This is in accordance with Regulation 3.2 (i) of the remittance of assets regulations, which states: "Authorised dealers may allow NRIs/ person of Indian origin (PIO), on submission of documentary evidence, to remit up to US$1 million per financial year: (i) Out of balances in their NRO accounts/ sale proceeds of assets/ assets acquired in India by way of inheritance/legacy.
"Where the remittance is to be made from the balances held in the NRO account, the authorised dealer should obtain an undertaking from the account holder stating that (the said remittance is sought to be made out of the remitter's balances held in the account arising from his/ her legitimate receivables in India and not by borrowing from any other person or a transfer from any other NRO account and if such is found to be the case, the account holder will render himself/ herself liable for penal action under Fema)."
It may, therefore, be noted that the sale proceeds of up to US$1 million may only be remitted from India if the property was acquired by way of inheritance/legacy.
For a property acquired by way of purchase, an NRI may send the sale proceeds if the conditions mentioned under Regulation 5 (A) (b) of the Acquisition and Transfer Regulations are met. The conditions are:
"(i) The immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition or the provisions of these regulations;
"(ii) The amount to be repatriated does not exceed: the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels; or the amount paid out of funds held in foreign currency Non-Resident Account; or the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; and (iii) in the case of residential property, the repatriation of sale proceeds is restricted to a maximum of two such properties."
Further, the prior permission of the RBI is necessary for remittance in excess of US$1 million per financial year for the properties acquired by inheritance/legacy. This is in accordance with Regulation 4.1 (a) (ii) of the Remittance of Assets Regulations.
However, it may be pertinent to note that if the property was acquired by an NRI by way of purchase and not by way of inheritance/legacy, the NRI or his successor shall not - except with the prior permission of the RBI - remit outside India the sale proceeds of any immovable property. This is in accordance with Regulation 5 (A) (a) of the Acquisition and Transfer Regulations.
No prior permission is required by the Central Bank of the UAE to receive funds from India. You may consult a chartered accountant or a legal practitioner and the bank with which you hold an NRO account in India.
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