I was Non Resident Indians, purchased property in India with funds earned in USA. The funds were transferred from my US account to my In-Laws Bank Account in India.

I am now US Citizen. I am in the process of selling the property and bringing the funds back to USA.

Since, the conversions rates were vastly different compared to 10 years ago, although the property has appreciated in Rupee terms; it is still at loss in dollars terms due to the exchange rate.

What kinds of taxes on both ends are we liable for?

  • How was the funds transferred from US to India, was via the NRE account? Has the property appreciated in rupee terms. Do you still hold the NRE account. Please confirm if you are PIO. – Dheer Dec 15 '18 at 16:57
  • Dheer - No, NRE was not used. It was wired from my account to my in-laws account in order to make the purchase in 2006. I have documents on that. The property has appreciated in terms of ruppees. I am not PIO. Appreciate your inputs. – Crab Apple Dec 15 '18 at 17:10
  • Is the property in your name or your MILs name? – Dheer Dec 16 '18 at 3:52
  • It's in our names – Crab Apple Dec 16 '18 at 14:26
  • You would need to edit the question and include details like who made the transfer, was the transfer to an individual when you say in-laws or only father in law or mother in law? When you say property is in our names? Who is the other person? A foreign national can't buy property in India. m.rbi.org.in//scripts/FAQView.aspx?Id=33. So it is surprising you have it in your name when you are not a person of Indian Origin. – Dheer Dec 16 '18 at 16:06