Re: Transfer of Money from India to USA. Provision of TDS / TCS

Dear Sir,

A Lady approximately aged 65 expired about 10 days back, she has a daughter who is living in USA. Her husband is living in India with his wife. Now, as he is old, he wants to shift from here to USA and would like to live with her daughter. Smt. A who expired has some fixed deposits in the bank (some in her personal name and some jointly with her husband). She also some property jointly and separately with her husband. Now the daughter and husband wants to encashed FD and also wants to dispose of property and to transfer this money to USA. Whether any TDS / TCS on cancellation of FDR and transfer of this money from India to USA will be deducted or collected by the Bank and also tell us the other provision.

As we understand, Smt. A has expired and her husband wishes to leave India and settle in USA. The husband wishes to encash the FDs and dispose off the assets of the deceased. The query pertains to TDS and TCS implications on foreign remittance of the said sum.

 

Firstly, it would be important to see if the deceased has left a will. In the even of a will, the inheritance will be in accordance with the Will. In the event, there is no will in place, the same will be an intestate succession and the provisions of the Hindu Succession Act (assumed) will follow.  

 

It is pertinent to note that, as per the Liberalised Remittance Scheme of the RBI all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.

 

When the property is sold the assessee  has  to pay the tax subject to indexation . Daughter being relative no tax is payable  when the amount is sent to daughter    

 

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