My friend wants to sell his inheritance house in India. He wants to invest $500,000 USD in USA to get EB5 investor visa.
How money can be transferred from India to USA legally?
Also what forms or paperwork has to file in India?
sell his inheritance house and
This will attract a capital gains tax. Assuming this has been paid.
How money can be transferred from India to USA legally? Also what forms or paperwork has to file in India?
Under the Liberalized Remittance Scheme[LRS], an individual in a given financial year can transfer upto 250,000 USD without any paperwork.
Under the Liberalised Remittance Scheme, Authorised Dealers may freely allow remittances by resident individuals up to USD 2,50,000 per Financial Year (April-March) for any permitted current or capital account transaction or a combination of both. The Scheme is not available to corporates, partnership firms, HUF, Trusts, etc. The permissible capital account transactions by an individual under LRS are:
opening of foreign currency account abroad with a bank;
purchase of property abroad;
making investments abroad- acquisition and holding shares of both listed and unlisted overseas company or debt instruments; 5acquisition of qualification shares of an overseas company for holding the post of Director; acquisition of shares of a foreign company towards professional services rendered or in lieu of Director’s remuneration; investment in units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes; setting up Wholly Owned Subsidiaries and Joint Ventures (with effect from August 05, 2013) outside India for bonafide business subject to the terms & conditions stipulated in Notification No FEMA.263/ RB-2013 dated March 5, 2013;
extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 1956.
Note anything in excess of this can still be transferred under Foreign Exchange Management Act, [FEMA].
The 250,000 USD under LRS can be used for immigration; however this can be extended to 500,000 for visa / points.
Money can be transferred by Banking transaction; there may be some declarations to be filed before an Indian Bank will initiate the transfer.