NRI selling property in India? NRE vs NRO account
The article provides guidance for Non-Resident Indians (NRIs) considering selling property in India and transferring funds abroad. Two key bank accounts are discussed: NRE (Non-Resident External) and NRO (Non-Resident Ordinary), each with distinct features regarding repatriation of funds.
NRE accounts allow unrestricted repatriation of funds, while NRO accounts have limited repatriation capabilities, capped at USD 1 million per financial year for NRIs, PIOs, and OCIs. The article clarifies that property acquired by NRIs during their residency in India or inherited from a resident is generally credited to NRO accounts, whereas self-owned properties (excluding agricultural land, plantation, and farmhouse) are typically repatriable and should be credited to NRE accounts.
The article further elaborates on FEMA rules governing NRI property sales, emphasizing that NRIs can sell residential or commercial properties to residents, other NRIs, or OCIs without prior RBI approval. However, specific approval may be required for sales to foreign nationals or entities. The choice of account for receiving property sale proceeds depends on the property's acquisition history and the intended use of the funds.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
