Capital gain
This query is : Resolved
chintamani
(Querist)
21 January 2012
Hi,
My quary is regarding CG on NRI
e.g.A has bought property worth Rs.50800/- in yr 1979.He gifted this property in Nov 2007 to his sister having mkt value of 12.80 lacs. she wants to sell the same for 52 Lacs & she in NRI.
Pls guide regaring CG liability fot F.Y.2011-12
Thanks
My quary is regarding CG on NRI
e.g.A has bought property worth Rs.50800/- in yr 1979.He gifted this property in Nov 2007 to his sister having mkt value of 12.80 lacs. she wants to sell the same for 52 Lacs & she in NRI.
Pls guide regaring CG liability fot F.Y.2011-12
Thanks
CA PARAS BAFNA
(Expert)
22 January 2012
Since the property has been received by Gift, cost to the previous owner has to be considered.
.
Since previous owner has acquired the property prior to 1.4.1981, its valuation as on 1.4.1981 or cost which ever is higher, can be taken as cost of acquisition.
.
For computing capital gains Indexation of cost of acquisition (or value as on 1.4.1981) is allowed. The Indexed cost of Acquisition, so arrived, has to be subtracted from 52.00 lac to arrive capital gains.
.
Tax @ 20.6% is required to be paid.
.
Since previous owner has acquired the property prior to 1.4.1981, its valuation as on 1.4.1981 or cost which ever is higher, can be taken as cost of acquisition.
.
For computing capital gains Indexation of cost of acquisition (or value as on 1.4.1981) is allowed. The Indexed cost of Acquisition, so arrived, has to be subtracted from 52.00 lac to arrive capital gains.
.
Tax @ 20.6% is required to be paid.
Maninder Jain
(Expert)
23 January 2012
Any capital gain on property which is situated in India, is deemed to accrue or arise in India.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Maninder Jain
(Expert)
23 January 2012
Any capital gain on property which is situated in India, is deemed to accrue or arise in India.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Maninder Jain
(Expert)
23 January 2012
Any capital gain on property which is situated in India, is deemed to accrue or arise in India.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Maninder Jain
(Expert)
23 January 2012
Any capital gain on property which is situated in India, is deemed to accrue or arise in India.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
Any income which is deemed to accrue and arise in India, is liable to tax for Non residents also.
This is the first test.
Rest what Mr. Bafna said, i fully agree & i have nothing to add further.
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