Breaking Down Inheritance Tax: How Much Will You Pay in India?

[@felix842002]

I will never invest my money in India in my lifetime. Its very easy to bring foreign currency into India..but try taking it out. Its a nightmare.

[@atul58]

Can you describe what problems you faced ?

[@felix842002]

@atul58 Well lets see. I was an NRI who was working on ships before and after marriage i had bought an apartment for my family in 2013. In 2021 We shifted to Canada on PR and decided to buy a house in canada by selling the property in India. From 2013 till 2021, I paid EMI to the bank from my NRE account including the down payment but when i sold my property i sold the property and got paid in INR so i cannot put this money into my NRE account. I have to create an NRO account for this purpose, so okay done. I created an NRO account. Remember, an NRE cannot hold a local account, so i didnt. Turns out if u hold a local resident account you can transfer money online from ur banks online website to any other country within certain limits but if u have a NRO account u cannot do this. I tried remitly, transferwise, western union. Nope nothing works. So i have to approach the bank. Okay. Now the bank wants me to submit Form 15CA and form 15CB. Okay..so i go searching for a CA who can do this. He charges me Rs. 25,000 to fill thos form. I ask other CA too..but most of them are around the same value. So i pay Rs.25,000 and submit form 15CA and form 15CB for transfer of funds. Meanwhile, when i sold my property, the govt took 20% capital gains as security because i am NRI. I was told i can file my taxes the following year and whatever is the difference calculated i will get refund the next tax year. Okay pay 20% and wait for 1 year. After 1 year, again approach ur CA and when u get the refund, again it comes into ur NRO account. Again the CA wants another Rs. 25,000 for transfer of funds from NRO to NRE account. Since the refund money was not big. I left the money in my NRO account. Now i am emailing bank but no response. Eveyone has different interpretation of laws. My money is still sitting in my NRO account. Okay i try to use my debit card to buy some airline ticket..but for NRO account they will issue only Rupay debit card, okay again contact bank, please can u change my debit card to visa, i cannot use this card internationally, negative response. No cannot do it. For me to sit in Canada and to invest in any property in India is foolishness. I struggle to get a response from a bank. The CA as soon as they see u are NRE will automatically increase their charges. You dont know who is occupying ur plot or agricultural land in India. If you buy MF in indian rupees then the INR has historically always fallen against USD even when it performs good so u get a medocre return only. The taxes are another headache. U buy property u pay taxes. U sell property u pay taxes. The govt will tax u directly and indirectly everything but if u lose ur job in India govt doesnt care. There is no Employment insurance or any kind of governmental health insurance..so yes, its easy to invest in India and maybe u get good returns..but if u try to convert that money into USD and then bring it back to USA and Canada..u will have to create an NRO account, for which u need a CA, wait for 1 year, file taxes again. Pay capital gain taxes, direct and indirect taxes, conversion fees, and by the time money reaches ur hand only 50% will remain. The rest will go to govt, bank, CA, Lawyer etc. Now if i see a property in Canada, i can convert CAD to USD without any restriction and move to US if i want. That is the difference and the reason why I will never put foreign currency into India ever again. And yeah, try asking ur bank for USD 20,000 For ur studies. They will ask u for hundred documents and reasons why u need the money even though u are willing to pay the equivalent in INR but give the same bank USD they will happily take the USD and give u INR with no queations asked. Maybe i should make them fill up the same form next time i give them money? Anyways, i have had a bad pwrsonal experience.

[@vinodk2verma]

I totally agree

[@vinodk2verma]

@@atul58poor customer service and respect to protocol, customer service staff just give you any information they feel like

[@krishnanunnimadathil8142]

Part of the reason is still existent foreign exchange controls. There is an upper limit on individual account transfers out of the country above USD 250,000 in a given FY. This makes large individual investments into the country unpalatable for many investors, especially when trading large amounts. Hopefully, the government will place more faith in individual investors going forward.

[@terminator762002]

very informative. Thanks for making such useful investment related videos for the NRI community

[@kumarpradeep6668]

Very informative. Thanks for bringing this topic for discussions🙏

[@umtatraining]

Very nicely explained 👌

[@krishnanunnimadathil8142]

4:29 What you wanted to hear. There is a way to make this video way shorter.

[@rajureddy3540]

Thank you for saving time

[@thandrifamily8086]

Excellent! Very informative. Thank you for covering in detail such an important topic. 🙏

[@bambu3954]

Thanks. Wish you cud have expanded on merits of LTCG vs STCG

[@drsvinay]

I am from the UK. I am told by our tax authorities, that any inheritance from a parent who has never been tax domiciled in the UK, then no IHT is payable in the UK..

[@rmgpdoc]

That’s correct

[@sriramrao2514]

@@shreeshsaurya4203 No, as there is no inheritance tax in India at all...

[@nikhilnanal4384]

us doesnt tax inheritance federally and only 6 states charge inheritance tax.

[@pritu87]

Valuable information! Thanks for sharing!

[@SammaVaca]

Thanks for the video. Can you also make a video on what happens if the NRI wants to repatriate the money that he gets after selling inherited assets. Is there remittance tax on that? Is there restriction on the amount that can be withdrawn per year?

[@NRIMoneyClinic]

These videos are already there on our channel . Please watch our channel playlist NRI Taxation

[@sriramrao2514]

The video title is "Repatriation Scheme For NRIs - 1 Million Dollar Scheme"

[@sanjivjhalla4362]

Very informative video. Thanks

[@sriramsrane1977]

How tax and returns works in India on LTCG for both Debt MF & Equities. I have switches recently both Debt fund & equiity, 2L each LTCG and TDS (12.5% TDS+4%Cess) is deducted on the same. Now my query is whether I can file the ITR (ITR-2) FY-25-26 for a refund. As per the new regime I might need to pay 5000, wherein the TDS deducted is almost 50K. your input will be highly appreciated. Apart from the said earning, I dont have any other income and I am an NRI living in UAE.

[@sriramrao2514]

There is already a video on this topic with title "NRI Tax Filing Due Date 31.07.2024, Do Not Neglect These Points. Here Is What Law Says" in this channel... you can watch it and be guided...

[@sriramsrane1977]

Thank you very much 🙏🙏

[@sanjivagrawal5520]

In respect of all leasehold properties in Noida all the legal hairs have to pay huge transfer fee and stamp duty. This is inheretance tax

[@sreenivasas6770]

Thank you for the valuable info sir

[@chandraravikumar]

My 81 years old husband here in India has been struggling for the past 4 years with the CA, the lawyer, and the Hon. Court, to get released and transferred to his 82 years old sister-in-law in the US about $ 100000 that her husband had invested in an NRI account in a leading, nationalized bank in India, after her 92 years old husband died while neglecting to make a will to her or their 60 years old daughter also living in the US. The ultimate requirement was ( maybe right in law, but flawed in practicality) was when the Hon. judge required to see the original passport of the lady, though she is too sick and old to travel all the way here, because a copy of the passport notorized in the USA cannot be accepted here unless the notary or the passport holder is personally present in court here to support the document. 😢

[@krishnanunnimadathil8142]

There is a crying need for legal procedure in India to come to terms with both modern conveniences as well as the increasing age profile of a lot of people. We may have 21st century money but still living with 19th century legal procedure!😢

[@Randomest_Stories]

This sounds wrong, in law 😢😮

[@Bigboy4in]

Dear Sir, First of all, thank you for your valuable videos that support the NRI community. Sir, my issue is that I returned back to India permanently 3 years before, now i again I got offer to work in Gulf country. What will happen to my funds that were converted from NRI to Resident account. I do not have any local income as of now. Some amount I have invested in stocks and FD's. Can I change my funds from Resident to NRI. My bank is saying the funds will be parked in NRO. Note: I don't want to repatriate but want to keep in NRI account. Kindly advise.. thanks

[@sriramrao2514]

Funds will be primarily converted as NRO.. Later the same can be transferred to NRE by following due procedure... You can watch the video with title - "Repatriation Scheme For NRIs - 1 Million Dollar Scheme"

[@sachinshukladxb]

Thank you sir

[@balanbhaskar6598]

What about indexation?

[@ravikumars6614]

can NRI hold the inherited shares ?

[@AshokKumar-wl9tq]

Best information

[@VishnuPriya-ng6wk]

Could you please explain if indexation is applicable for inherited properties and if so, how it is calculated?

[@krishnakumarsubramaniam9819]

Yes allowed

[@VishnuPriya-ng6wk]

@@krishnakumarsubramaniam9819 , it is not allowed for NRIs. only capital gains tax is allowed.

[@sudhakarbasani8528]

What happens when father of NRA purchases immovable property in the NRA name .Can he dispose it .

[@rationalthinker2724]

We regret investing there !! Modi ji comes to US , gets so much love and respect from Indian diaspora, in his address he boasts about how India is ahead of west and urges us to invest in India , boasts about various projects to Indians , but what about us NRI ? They spent billions of dollars to India, contributed to country gdp . Modi ji knows most NRI were middle class or lower income group before we came here. With lots of difficulties, we took responsibility of family there, by living frugal here and with so much sacrifice and the emotional attachment we own a property there !! When in our late 50’s we want to sell and bring back our money ( as we realize all relations there has been diluted) and our old age , India treats us like multi millionaires and tax like crazy !! During taxing Modi ji has no emotional attachment towards us , treats us like any phirangis and axe us with exorbitant amounts!!😡😡 During 50 plus we would have been beat up by kids college costs and living costs !! It’s cruel to tax so much as we have contributed to economy!! Atleast he should give a window of 2 years for all NRI s to sell and repatriate at a lower tax only once !! Newer generations are very smart unlike us, they are not emotional fools like us !! I am very disappointed by double standard of the government attitude towards us 😡😡

[@dutterR]

Any video on property gift received from parents in their life time through a registered gift dee? The receiver was not a NRI at the time of gift deed but became a NRI later and lives out of India permanently but has filed taxes in India from time to time.

[@subramanianvenkatasubban7017]

Clarity is thy name Mr Bhat and Mr Sriram V Rao

[@vinay4886]

Thank you for covering this important topic. It still isn’t clear how the cost price of shares and bonds is calculated when sold by the acquiring party. In foreign countries, there is the concept of ‘CGT uplift’ that calculates the cost of shares on the day it was inherited, not what was paid by the deceased. How does the Indian govt calculate the cost of purchase? Thanks again.

[@SammaVaca]

There's no step up in cost basis in India. You pay tax based on the original acquisition price paid by the parent from whom you inherit. The exception is if it is a immovable property that was acquired before April 2001, then the cost is taken as the value of the asset on April 2001. e.g. if the original asset was land which was acquired for 1 lac in 1990 by your father. In April 2001 it was valued at 5 lac. Today it is valued at 50 lac. You will pay tax on 50 lac - 5 lac. instead of paying on 50 lac minus 1 lac.

[@vaidyasethuraman452]

waste 5 minute to finally say, there is no estate tax as of now in India, while talking all the time of inheritance tax. hmmmm

[@krishrao2778]

Plz speak simple direct language.