🌎 Why Transfer Property from India to the USA?
Many Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) inherit or own property in India but reside in the USA. Whether you’re selling, gifting, or repatriating sale proceeds, knowing how to transfer property from India to the USA legally and efficiently is essential.
This guide covers ownership transfer, repatriation of funds, tax rules, and compliance with FEMA.
🔑 1. Transferring Property Title: Sale or Gift
If you’re transferring property in India while residing in the USA, you can do it in two primary ways:
✅ a. Sale of Property in India
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You must be the legal owner or have Power of Attorney.
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Sale proceeds must be received in an NRO (Non-Resident Ordinary) account.
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Up to $1 million/year can be repatriated abroad under FEMA rules.
✅ b. Gifting Property to a Relative
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Can be done via registered gift deed.
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No tax if given to a relative (parent, spouse, sibling, etc.).
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Gift must be registered and stamped according to Indian state laws.
🏦 2. Repatriating Funds to the USA
After selling the property, NRIs can repatriate the money to the USA through legal banking channels.
💼 FEMA Guidelines:
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You must submit Form 15CA/CB to the bank.
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Property must have been purchased in foreign exchange or inherited.
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Allowed repatriation: $1 million/year, including other remittances.
🔗 Tip: Use authorized banks like SBI, ICICI, HDFC with NRO–NRE transfer options.
💰 3. Taxes on Property Sale in India
As an NRI, you are liable to pay:
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Capital Gains Tax
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20% LTCG (Long-Term Capital Gains) if property held >2 years
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30% STCG (Short-Term) if held <2 years
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TDS (Tax Deducted at Source)
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20% TDS is deducted at the time of sale by the buyer
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You can claim a refund or lower TDS certificate from the Income Tax Dept.
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📝 4. Documents Required
To transfer property from India to the USA, ensure you have:
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Registered Sale or Gift Deed
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PAN Card (Indian)
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Aadhaar card (if resident co-owner)
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Power of Attorney (if you’re not in India)
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NRO/NRE account
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Form 15CA and 15CB for repatriation
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Bank FIRC (Foreign Inward Remittance Certificate)
🛂 5. Legal and Embassy Support
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If you’re unable to travel to India, a Power of Attorney (PoA) can be notarized at the Indian Embassy in the USA.
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Register the PoA with the Indian sub-registrar where the property is located.
🌐 Can You Own Property in the USA Using Indian Sale Proceeds?
Yes. Once funds are legally transferred to your U.S. account, you can use them to:
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Invest in U.S. real estate
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Pay for mortgages
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Use for personal or business expenses
However, consult a tax advisor in the U.S. to report the income and comply with IRS regulations.
📌 Final Takeaways
How to transfer property India to USA legally depends on proper documentation, following FEMA laws, and staying tax-compliant in both countries. Whether you’re selling or gifting property, ensure you use:
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Registered deeds
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Legal bank channels
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Tax declarations
For NRI tax planning, legal help, and step-by-step guides, follow IndoThinker’s NRI Resources.
