r2i forum

I am a US citizen (PIO) and I received an apartment my father owns in India as a gift. I would like to sell it after about 3 years and transfer the proceeds to US. Assuming that I pay all capital gains taxes that are applicable in India and fulfill all the RBI or bank requirements in India for the transfer of these funds, are there any additional US taxes that I have to pay when I bring these funds over to US? Are there any other requirements from the US side that I have to satisfy before I can initiate the transfer?

Thanks very much.

Hi Nivas11,

While transfering the funds from India to USA, you have to need to make sure that the amount you are transfering is tax paid, without which the bank will not transfer. A Certificate from Practising Chartered Accoutants, will be required while transfering the money.

There is no additional requirement from the US side for receiving the money. From the tax point of view, since you are a USC, when you sell this property, you will be liable for capital gains tax both in India and US, since you have paid the taxes on it in India, you may be eligible for foreign tax credit on the same. Proper planning and complete tax situation details will help to compute the tax liability in this situation.

We provide assistance in both USA and India tax filings from Pune. You can email us with more details on [email protected] or visit us at www.kkassociate.com

Regards,
KKA