Capital gain by Non Resident Indian

This query is : Resolved

Mihir (Querist)
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14 January 2011 A Non Resident Indian has sold residential flat located in mumbai. The capital gain is short term capital gain of Rs. 40 lacs appx. he wants to pay tax and remit the money to out of india...

whether he has to file return / other form with IT department before remittance of moeny or the return will be required to filed at the year end? He is not filing any return in india for earlier years....

What will be the tax implication for the same transaction? whether tax has to be paid as per normal tax rate slab wise? i.e. can he get benefit of basic exemption and slab rate of 10% and 20%.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 January 2011 In Case of Short Term capital gains other than in shares, the Normal Slab Rates are applicable.
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The NRI if, is not having any intention to come back India, he may inform about his intention to the assessing officer having jurisdiction over his case.
On Receiving such letter from the assessee, the AO may issue him a notice to file his Return of Income.
The detailed procedure has been set out in Section 174.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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16 January 2011 As per Income Tax Act,in this case the purchaser should have deducted the TDS and remitted the net balance to the NRI, but it looks that it has not been done.
Now the the NRI shall need to pay the taxes and will need a certificate from the CA in form 15CB for remitting the funds .
Return for the same can be filed at the end of year and since the same is online now, hence the same can be done easily.

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