garybateman

If I sell a small property in Goa how do I get the money back to the UK. I read somewhere that the initial investment can but taken out via my bank.
Do I need to set up a NRO account and move it that way. I would want to move the initial investment but would be quite happy to leave the profit in India and use it while I'm there.
I am a OCI if that helps.

Thanks
Gary

a_f_d

That helps in that the RBI know you are a member of a group that exists**.
Yes you can take out the invested amount - after that any profit can be index linked for tax purposes, any profit after that is taxable OR can be sheltered in one of a couple of capital-gain exemption bonds. After that get a CA's report for the RBI - who may let you repatriate any tax-paid balance.

basically - see a CA
** actually they know PIO and NRI, so try to blend into the crowd!

AndyD 8-)₹

P.S. that's a (_)? you owe me!

garybateman

Thanks m8
I'm new to this and I'm told that the RBI are not allowing any transfers at the moment due to the low value of the Ruppee.
So am I clear that there should be no problem moving the initial investment from a NRI account to a UK account. I would have to declare this beforehand and would be charged interest only if I move the remainder of the money? (bye the way what's a CA report)

Thanks
Gary

a_f_d

CA=Chartered Accountant

Assuming you are non-resident in India for tax purposes, you are liable for tax on any income accruing in India - this includes capital gains.
You will be required to show that all due taxes have been paid in India before the RBI will allow repatriation of your sales proceeds.
afaik the RBI has reduced, but not eliminated the amounts that residents can remit abroad.

AndyD 8-)₹
You may also have a liability in the UK for the difference between the cgt due in the UK and that paid in India.
I suggest you consult a chartered accountant

davidhendry

Am I correct in assuming that if I can PROVE what monies I have transferred,via atm's, I can take same back to UK?

Davie.

a_f_d

If you are a foreign resident/ tourist then iirc you can take out cash in foreign currency of up to $5,000 (because that's what you can bring in without declaring it at customs).
If you are resident [as per FEMA] you can remit up to $75,000 p.a. through an authorised bank (down from $200,000 a few months ago - and it can no longer be used to buy property abroad). You can also import/export Rs. 10,000 (up from Rs. 7,500 a few months ago).
If you are PIO/NRI (and maybe if you are a FEMA-resident foreigner) you can remit money from the sale of property bought with imported money - up to the purchase price, and maybe more with a tax-paid certificate from a chartered accountant.

The Foreign Exchange Management (Export and Import of Currency) Regulations, 2000 don't seem to know about foreign cards used in ATM's

hth AndyD 8-)₹