repatriation money selling farm land nri, repatriate sale proceeds agricultural land, send money abroad after selling land
3 Answers
Moving sale money abroad is possible but has rules and limits. When an NRI sells inherited agricultural land to a resident buyer, the proceeds normally go into an NRO account first, after tax is dealt with. From the NRO account, the broad framework under FEMA allows an NRI to remit up to USD 1 million per financial year, covering such proceeds, subject to paying applicable taxes and submitting the right forms. The standard paperwork includes Form 15CA and a CA's certificate in Form 15CB confirming taxes have been paid, plus your bank's repatriation forms. Capital gains tax must be settled before remitting, and TDS may already have been deducted by the buyer at the time of sale. The exact route also depends on whether the property was inherited and on documents proving the source. This area is detail heavy and banks are strict, so use a CA experienced with NRI repatriation and confirm the current limit and forms with your bank and RBI guidance. This is general information, not financial or tax advice.
The USD 1 million per year limit was enough for my case. The real work was the 15CA and 15CB. My CA handled it and the bank released the funds in about two weeks once the forms were in order.
Tip from my experience: make sure the buyer gives you the TDS certificate. I almost could not claim credit for tax already deducted because the buyer was slow to give Form 16A.