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I got my green card in 1998 and USA citizenship in 2002. I purchased an apartment in India in 1991 when I was residing in India with Indian citizenship. That apartment was my primary residence. Now I have a primary residence in USA and would like to sell my apartment in India.

What is the process to bring sale proceeds to USA?

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  • No problem bringing money in, though you may have to deal with which country gets how much income tax. I have no idea whether India has any limits on money leaving the country. The process of actually moving the money is to have the banks talk to each other...
    – keshlam
    Aug 18, 2016 at 1:39
  • Be aware that this will be a taxable transaction under US law. Sale price - purchase price - improvements you made = long term capital gain. Aug 18, 2016 at 4:09
  • Is the starting point the purchase price, or the price when the OP became a US "Tax person"?
    – DJohnM
    Apr 3, 2019 at 16:51

1 Answer 1

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What is the process to bring sale proceeds to USA?

You would need a CA to help you with all the formalities.

Assuming the loan was fully paid of from Indian funds and you are looking at moving all the funds to US and not investing in another property in India.

  • As the property is held for more than 3 years, this would be subject to long term capital gains. This is currently at 10% without indexation and 20% with Indexation. A CA can help you arrive at the tax due. Note the sale proceeds are subject to TDS by Buyer, so he may pay less directly to you and deposit some funds with tax authorities. There is some paperwork involved.
  • It would be easy to have the funds can only be credited to your NRO account. Suggest you open one, if you don't have. Else the process becomes more complicated for everyone.
  • From the NRO account an PIO can transfer upto USD 1 million every year. A CA certificate is required [essentially stating that taxes are paid and transfer are within limits, etc] for Bank to make this transfer from your NRO account to an account in US.

Further read at RBI
As pointed by others in note, you maybe declaring this property in your US tax returns and this transaction may also be taxable in US. There may be NO benefit under DTAA which a CA maybe able to help you or advise.

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