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I purchased a property in India 3.5 years ago. Part of the payment is done from an NRE account and for financial year 2013-2014 paid using a local RS account because I was working in India. I've gotten a resident card for South America now. I would like to sell this property and transfer the proceeds to that country.

  1. Will I able to put the Rs amount back in the NRE account the same amount which I have paid against that house?
  2. Will I need to pay TAX on NRE account money before transferring out of India?
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Will I able to put the Rs amount back in the NRE account the same amount which I have paid against that house?

If you have purchased the property by debiting an NRE account [you should have the paper trail], the same amount of funds can be transferred back to NRE Account. For example the house was for 50 lacs, and you paid Rs 30 lacs from NRE account, when you sell the house, you can transfer back only 30 lacs into the NRE account.

Will I need to pay TAX on NRE account money before transferring out of India?

You need not pay tax on the funds in NRE account. However if you have made gains by buying and selling a house [irrespective of the source of funds], you have to pay capital gains tax.

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