It seems that different banks have different "source of funds" proof requirements for repatriation of proceeds from inherited property sale. For example, CitiBank India requires either succession certificate or probated will. On the other hand, ICICI only requires that the sale deed mention that property is inherited, but does not require succession certificate or probated will. What is the rationale for this? Isn't there a standard RBI guideline that all banks should legally follow?
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If the property is inherited whether its your parents self owned or ancestral property. It would require only legal heirs certificate. And the original sale deed if property is self owned by parents and for ancestral property just mutation records of last 30 years.
Probate is require for WILL document.
Yes there is standard guidelines which all have follow
1) Probate is judicial proof that will is genuine
2) succession certificate is order issued by court that you are the legal heir for movable assets and securities
3) The NRI must produce documentary evidence in support of the inheritance and an undertaking and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes
Since there is flexibility , operate account with such Bank whose regulation suits you.
For Repatriation of sale proceeds from a property inherited by an NRI:
Investing in Real Estate in India and repatriation of sale proceeds need close guidance from experts to sort out your taxation and other related aspects.
There are no taxes on inheritance of property for NRIs. However, capital gains tax shall be applicable when the inherited property is sold.
can you elaborate this question more
i dont know if i got it right - u have inherited certain property and sold that property and now want to repatriate the sale proceeds to a foreign country...is that correct?
Dear client,
The Reserve Bank of India (RBI) is the central bank of India and it issues guidelines on various aspects of banking operations, including foreign exchange transactions. However, banks also have their own internal policies and procedures that may vary depending on their risk management practices and customer preferences.
In the case of repatriation of proceeds from the sale of inherited property, the bank may require certain documents as proof of the source of funds to ensure compliance with the Foreign Exchange Management Act (FEMA) regulations. These regulations govern foreign exchange transactions and aim to prevent money laundering, fraud, and other financial crimes.
The RBI has issued guidelines on the documentation required for repatriation of proceeds from the sale of inherited property. According to these guidelines, banks should ensure that the remittance is made only after verifying the necessary documents, such as a copy of the probated will or a succession certificate issued by a court of law.
However, these guidelines are not exhaustive, and banks may also ask for additional documentation based on their internal policies and risk management practices. It is important to check with the individual bank to understand their specific requirements for repatriation of funds from the sale of inherited property.
