What are the formalities involved in repatriation of the sale proceeds?
The designated Bank through whom the RBI permission is obtained does the repatriation of sale proceeds. The Bank immediately repatriates the sale proceeds if they are equal to the cost of or less than the cost of investment. q If the sale proceeds are more than the cost of investments, there is a profit. This profit can be repatriated as follows : q If the profit is a long term gain, a flat tax of 20% is deducted from the profit and the balance is repatriated. q If the profit is a short term gain, it is added to the other income of the investor in India and the funds can be repatriated after settling the tax liability in India by obtaining tax clearance certificates.
Related Questions
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