Foreign Remittance_Urgent

[Varun Arora]

Dear Experts,'

Please resolve my query.

NRI had incorporated a pvt. ltd. company and holds 99% shares of that company, share capital of rs. 10 lacs. Now He had transferred rs. 90 lacs to pvt. ltd in the year of 2011 from his NRO Account. Apart from share capital shall be treated as Loan from Directors i.e. 80 lacs. And company had purchased immovable property out of this funds.

Now in the year of 2016 Company sold out the above mentioned property amounted of rs. 95 lacs Now as per income tax provisions NO capital gain would be attracted as because after cost inflation index its cost is higher than its sale proceeds.

Now company has transferred the sale proceeds of immovable property to its director's account i.e. in NRO Account.

Now Director(NRI) wants to take it back to USA from his NRO Account But Bank is not doing the foreign remittance as banker is saying that It needs RBI Approval.

Now the question is Whether it needs RBI approval or not, if yes please suggest how to get approval from RBI and what documents i need to produce to officer.

If no then please suggest what shall i do in this regard???

Thanks alot in advance for considering query.

AI Summary

NRI's INR 90L Loan to Company: RBI Approval Needed for Foreign Remittance of Sale Proceeds Below USD 1M? An NRI, who holds 99% shares in a private limited company, transferred INR 90 lakhs to the company from his NRO account in 2011, treated as a loan. The company purchased property with these funds and sold it in 2016 for INR 95 lakhs, with no capital gains tax due to inflation index adjustments. The sale proceeds were transferred back to the NRI's NRO account, but the bank requires RBI approval for foreign remittance to the USA. The NRI seeks advice on whether RBI approval is necessary and how to proceed, considering the remittance is below USD 1 million.