Transfer of funds from India to USA

[Somasundaram]

Seeking clarification to find out if we acquire a property in India and if we want to sell that and transfer the proceeds to USA is there are law that prevents us from transferring that fund before 10 years of acquisition of that property.

[JoeF]

As far as the US is concerned, there are no limits. Any transfer over $10K has to be reported to the authorities, though.

There may be laws in India that restrict things. Check with Indian authorities.

[leftheartcath]

Assuming you are a "Resident of the US", you will be liable to pay capital gains income tax on the money you are brining into the US.

You will also incur capital gains tax in India before you can obtain a "Foreign Currency" cheque from the RBI in India.

There are some legal ways around getting exemption from capitals gains tax in India such as if you were to invest the money I think for a period of 3 years on tax free bonds, but I would advice you seek out a accountant in India for that.

I doubt if you can avoid paying capital gains tax in the US though.

Siddarth

[JoeF]

Assuming you are a "Resident of the US", you will be liable to pay capital gains income tax on the money you are brining into the US.

If the OP is a US tax resident, he would have had to declare that money in his tax returns already. That's called FBAR, if I remember right.

[GcLLC]

India has tax treaties with US. Generally, you would be liable for Indian and US taxes, but you will get a tax credit for the taxes paid in India.

Also, if you are talking about inherited property, the answer is yes, you can transfer the proceeds from India. However before starting any proceedings I would strongly recommend that you talk to a lawyer and accountant in India and also a US accountant who has experience in handling international taxation.

[t75]

I second the recommendation that you consult tax specialist