I've read that it's possible for him to gift me the money, because I am a US citizen and he isn't. Would that be a viable option? It's a sum of 2 crore 15 lakh, so I'll have to file it.

I'm not sure how to go about this. Any help is appreciated.

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    Is your father a US citizen/green card holder? What tax are you referring to? – littleadv Dec 26 '14 at 22:37

There are 2 questions here;

My father, an NRI, sold inherited land in India ...

This transaction is taxable in India. As its inherited land, and assuming its Non-Agricultural, your Dad will have to pay tax on gains, 20% with Indexation and 10% without indexation.

He wants to move the money to the USA, with minimum tax. How to go about it?

Money can be moved to US, there is a limit on the amount that can be freely repatriated, the limit is more if the funds are being moved for investment, like property etc outside India.

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A simple rule of tax is , It doesn't matter where u live or your residence when it comes to income accruing in India .

As far as i know , You will need to find out the purchase prices of the inherited land and calculate the index value . Then pay tax on the capital profit (Not sure , I guess its 20%)

Example : Original value is 100,000 and the index value is 1,500,000 so the profit will be 650,000 . You pay 20% of the 650k only .

For paying minimum tax (Tax saving) There are few sections which gives exemption like purchase some bonds or purchase a house .

Its best if you ask a chartered accountant , For this simple case he shouldn't charge much. He should have updated knowledge of the situation and guide you better .

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