Best options for NRIs when transferring the proceeds from property sale in India

Nonresident Indians can engage in property selling in India and can legally engage in money repatriation to Canada However it has been observed that most of the transfers after the sale of a property is conducted through unauthorized means due to the lack of knowledge and due diligence on the part of the sender NRIs should understand that transfer of money through such processes is illegal and may have serious repercussions from the IT Department and Enforcement Directorate It is always recommended to use the services of reputed online forex transfer servicesIf you are a Person of Indian Origin PIO or a NonResidential Indian NRI with permanent assets in India and looking for different safe ways to liquidate property assets and transfer money from India to Canada then using the services of online money transfer services will be an inexpensive propositionLimits set on the repatriation amountRestrictions are placed on the maximum amount that nonresident Indians can repatriate to foreign countries out of the financial windfalls of the sale of property assets in IndiaSuppose the property is purchased using the nonresident external NRE account funds In that case the property owners can transfer money from India to Canada up to the original purchase amount from the NRE accountIf the property is purchased using monetary funds from a NonResident Ordinary NRO account then the maximum cap of repatriation is set at 1 million dollars for every financial year NRO account is similar to a savings account which is used to maintain income earned in India sourceMethods using which NRIs can transfer funds from India to CanadaNonresident Indians can transfer money from India to Canada using the following two methodsOnline wire transfer also known as SWIFT transfersDemand drafts which are synonymous with money ordersWhy online wire transfer is a convenient way to transfer money from India to CanadaWhen compared to traditional services like banks online forex platforms are the best option to conduct money transfer abroad due to their comparatively cheaper commission rates Reputed online money transfer services charge zero commission with enhanced convenience Send Canadian dollars to your family and friends with online forex services without incurring any additional chargesDemand DraftsYou can also transfer money from India to Canada using demand drafts denominated in foreign currency These are physical paper that is denominated in a particular foreign currency like Canadian dollars Demand drafts are less expensive than conducting a wire transfer from India to Canada but you need to keep in mind that it takes up to a maximum of 10 days for the transfer to take place completelyDemand drafts are a suitable option only in the absence of an emergency But when the circumstances call for immediacy then online wire transfer is the best way to send money from India to CanadaHow to transfer funds from India to Canada via wire transferThe allnew online processes can do all global remittances With safety precision and convenience you can conduct your wire transfer through the online mechanism You can follow the belowgiven steps to transfer money from India to Canada via wire transferStep 1You need to verify your entitlement for conducting any outward remittance After that input the senderrsquos details along with the receiversrsquo details The intent behind your remittance will also need to be enteredStep 2 The necessary documents will need to be submitted after the information listing process These documents comprise of front and back page of the passport PAN card photo address proof of remitter and any other necessary documents which should be uploaded in the online portalIt is to be noted here that the client is also given the option of conducting this process offline which requires a visit to the bank to sign the papers In light of the ongoing covid19 pandemic it is advised to arrange for a document pickup The other option is to safely upload the documents from the safety of your home which will also result in a lot of time savingsStep 3 Funds transfer can now take place to any of the partner banks of the online money transfer serviceStep 4 The exchange rate will be visible on your mobilepersonal computer screen and it will be booked After successful booking a digitised A2 form will be mailed The digital signature of the sender can be affixed on the document on the respective website After this the transfer process will be initiated and acknowledgement will be given to the sender sourceDifferent Repatriation ScenariosNonresident Indians can engage in buying or selling properties in India without any restriction The only exceptions are plantation property farmhouse or agricultural land When it comes to the liquidation of the property assets and repatriation of funds abroad the original fund source from which the property was purchased assumes significanceCase 1 If the purchase of the property took place out of the funds received through inward remittances in India The principal funds can be repatriated to the home country without any lockin period in the case of the property being purchased using an inward remittance fund There is no requirement for RBI permission and also no upper limit is set on the total amount that needs to be repatriated Tax deduction at source is applied to the profits that are made by selling a property in India Waiver of the TDS can be done when the NRI decides to reinvest the capital gains in acquiring another property in IndiaCase 2 Purchase of property through funds from NRO accountAn upper limit of 1 million dollars is set for the repatriation of property sale proceeds when the funds to buy the property are obtained by using funds in the NRO accountCase 3 When the NRI inherits the propertyWhen the owner inherits a property from another person who lives in India then money repatriation can take place without the permission of RBI However when property inheritance takes place from another person who is residing outside the boundaries of India then specific permission from RBI is mandatory for fund repatriationOnline money transfer agents offer convenience safety and low prices when transferring money from India to Canada Make sure to follow all taxation laws before initiating such a sale of properties