Is there a way for USA Non Resident Indian (NRI) to convert Rupees invested in Property(Flat) back to Dollars?

I have to buy a flat(property) for my parents in India. But I want to know ways to convert the Indian Rupees back to Dollars when I sell the property. I heard it is possible to convert Dollars in to Rupees but very difficult to convert Indian Rupees back to Dollars. Can someone help?

5 Replies to “Is there a way for USA Non Resident Indian (NRI) to convert Rupees invested in Property(Flat) back to Dollars?”

  1. I think that you need to find a bank that will exchange the currency. It will take some work on your part to do that. If you are a customer of the bank, then they may even do it for free.

    As long as you have proper identification, you should be able to open an account at a US bank.

  2. It is simple now a days. Buy the property(flat) in your name using funds from your NRE Account. When you sell the property, you will be allowed to externalized the funds.
    I am sure you have a NRE – either INR or in $ account in India. If not first open one(Either ICICI or SBI), bring funds and buy the property. Consult your Bank- NRI Cell, they are there to help you out.

  3. hi sans,
    As per the income tax act as well well as Foreign Exchange management act you can buy up to 2 flats but both in ur name. Please buy the flats from your foreign funds by paying the same directly to seller or through ur NRE account. As per the provisions which stand today you can take back what ever u have invested originally in terms of forex. Eg. if you have invested US $ 20000/- at Rs40 per dollar which Rs800,000/-. You sell the flat after 6 months for Rs.1,000,000/- the dollar is ay 45 then which US 222,222/-. U take back ur original investment of $ 20000/- without any question. it is done immediately upon filling up the required form and proof that payments have come from NRE account or directly. as far as 2222 is concerned u have to pay the required tax remitt the same. A NRI can repartirate upto 1 million dollars per year without even a single question as long as tax has been paid on the same. at the time of sale the sale proceeds have to deposited in a NRO account and thereafter remmitted outside india. The process is not difficult provided ur paper work at the time investment is perfect. You could email me on [email protected] for any further assisstances.

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