Hello Sir
I am 70 years old and retired my daughter stays in the USA. I was thinking of buying a small apartment there and also open a bank account there to send money once a year for my expenses.
As a resident indian, am I allowed to do so and if it is legal what is the proceedure regarding government permissions ???
Thank you Sir
Ans: Hello Willy,
Absolutely, as an Indian resident, you can indeed buy a property in the USA and open a bank account there. The Reserve Bank of India (RBI) allows Indian residents to remit funds abroad for the purchase of immovable properties under the Liberalised Remittance Scheme (LRS).
Under the LRS, an individual can remit up to USD 250,000 per financial year for any permitted current or capital account transactions or a combination of both. This limit would cover your property purchase as well as other expenses.
For opening a bank account, you may need to visit the bank in person in the USA. However, some banks might allow you to open an account online or via correspondence. You would need to check with the specific bank for their procedures.
Please note that while the RBI does not require you to seek its permission for such transactions under the LRS, you would need to adhere to the rules of the Income Tax Act in India. Any income from the property, such as rental income, would be taxable in India. Also, you would need to include the property in your wealth tax returns in India.
I would recommend consulting with a tax advisor or chartered accountant to understand the tax implications in detail.
I hope this information is helpful.
