It is not much tough to repatriate the sale proceeds from India provided some advance planning is required .So your money and time can be saved.
Up to $ 1 million per year can be repatriated from the sale amount deposited into your NRO account subject to certain procedures.
Funds can be transferred to your bank account in United States of America with the help of the banks in India providing foreign exchange services.
However, a tax clearance certificate is required in form 15CB and 15 CA from a Practicing Chartered Accountant there.
A pan card is required from Indian Income Tax Department. Please apply online if you do not have one yet.
You will be liable for long term capital gain tax of 20 percentage as per the Indian Tax Laws but it depends of property .
The capital gains are calculated as the difference between sale value and indexed cost of purchase. The amounts paid outside the deed price cannot be included as purchase cost but the cost for improvements can be added.
As an NRI, you will be subject to a Tax Deducted at Source of 20 per cent on the capital gains and the buyer has to deduct and remit to Income Tax department 20% of the purchase price as Tax Deducted at Source.
Form 15 CA and Form 15CB
Whenever money is being remitted by an NRI, Form 15CA has to be submitted online at the income tax department’s website. Usually, a certificate from a chartered accountant provided in Form 15CB is also required before uploading Form 15CA online.
In Form 15CB, a chartered accountant certifies details of the payment, TDS rate and TDS deduction applicable as per Section 195 of the IT Act, whether DTAA (Double Tax Avoidance Agreement) is applicable, and other details of the remittance.
Banks will not remit the money until this certificate is provided.
You also need the service of the Public Accountant in India further to file your tax return there and get refund after deducting the capital gain tax applicable.
Again as a US Resident, you need to include the capital gains in US tax return and pay capital gains tax on the profit.
Any tax you paid in India can be deducted subject to certain limitations.
I strongly suggest you to include a form 3520 return with your current tax return if not submitted before showing the value of the inherited property so you can establish a basis to the inherited property.
Hope the above is helpful,
Please feel free to call me for your specific questions or concerns, so I can guide you further.
Many of my clients successfully repatriated money from India.
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Syriac CPA starts with a complimentary consultation to find out where you are and where you want to be. Call us at (818) 960-9758 to get things started.