Posted on: 03-07-17 13:59:38
I have PF account and property in India which I want to cash out/sell and transfer funds to US bank account.
I heard that Indian govt doesn't allow outgoing transfers beyond USD $5000 per year.
Does anyone know whats the best method to transfer funds from India to USA?
You have to open an NRO account and transfer funds there. You have to contact a CA after that to get 15CA/CB filled. Then you can repatriate funds based on RBI limits ( https://www.rbi.org.in/scripts/FAQView.aspx?Id=23).
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Here is a link to another website. Please read and get to know all of the details and then do the sale of assets etc., Then deposit the same in your NRO account first. Then follow the correct procedures required to convert the same to US Dollars.
You are in US in LA and you should be able to get it into your Bank from India after the formalities. Formalities might take upto a week. But the transfers get done within the same day. Try and choose middle of the week, when rates are steady.
As in the case of resident Indians, NRIs who sell purchased property after three years from the date of purchase will incur long term capital gains tax of 20 percent. The gains are calculated as the difference between sale value and indexed cost of purchase. Indexed cost of purchase is nothing but the cost of purchase adjusted to inflation. Calculation of indexed cost of purchase is easy - many websites provide a calculator; else a chartered accountant can assist.
In case of inherited property, the date and cost of purchase for purposes of computing the period of holding as well as cost of purchase is taken to be the date and cost to the original owner.
To be more precise, the amount of long term capital gains together with the cost to the previous owner (i.e. the person from whom the property is inherited) would be considered as the cost of purchase. NRIs are subject to a Tax Deducted at Source (TDS) of 20 percent on the long term capital gains. But there are certain instances when NRI can get a waiver of the TDS.
The information that you have is very old and the current limits are around 1,000,000 US. They do fluctuate currently, so be guided by the new rules. When they say PIO, please see in what context they say it. Because PIO category has been thrown out and it is no longer in existence. But they abridge the long word in a few writings and hence the caution.
Hope this gets you started.
FH.
http://ctconline.org/documents/international/3-5-2017%20CA%20Natwar%20Thakrar%20CTC%20FEMA%20Study%20Circle.pdf
http://www.moneycontrol.com/news/business/personal-finance-business/find-out-legal-aspects-for-nris-selling-propertyindia-1468615.html
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Quote:
Originally posted by GoldFinger
I have PF account and property in India which I want to cash out/sell and transfer funds to US bank account.
I heard that Indian govt doesn't allow outgoing transfers beyond USD $5000 per year.
Does anyone know whats the best method to transfer funds from India to USA?
You can easily transfer upto $ 1 Million Dollars from your NRO account in India.
Usually you just need an Income Tax clearance certificate and a CA to do that. This you can do officially and legally.
Nowadays you can just do it online with a click of a button, if the money is already there in your NRO account..and you have access to Online banking for your Indian bank account.
