Capital gain on sale of resident house by non-resident Indian

This query is : Resolved

Quick Summary

Non-resident Indians (NRIs) are eligible for indexation benefits when selling a long-term resident property, just like resident individuals. The receipt of token money before a specific date does not impact this eligibility. The capital gains are calculated as the sale price minus the indexed cost of the property. NRIs may face high TDS deductions unless they obtain a certificate from a Chartered Accountant.

VISHAL SHAH

VISHAL SHAH (Querist)
Follow

17 November 2025 Mr X is non resident Indian and he is owner of resident house since 2002 and purchase cost is Rs 20 Lac. he has sold the resident house during the Financial Year 2024-25 for Rs 80 lac. He had received token money of Rs 20 lac in April 2024 and remaining amount of Rs 60 lac in August 2024 at the time of registration of sale deed. sale deed is register on 25 August 2024. my query is whether , Mr x is eligible to get indexation benefit or not on the basic of token money is received before 23/07/2024 by account payee cheque?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

17 November 2025 Give the TDS deduction details...

CA Kedar Sakhardande

CA Kedar Sakhardande (Expert)
Follow

18 November 2025 Hello

There is no Indexation benefit available to NRI

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

19 November 2025 NRIs can claim indexation on sale of long-term property.

Section 48 treats residents and NRIs the same for indexation.

Receipt of token money before 23-07-2024 does NOT affect indexation.

Full LTCG = Sale price – Indexed cost.

TDS under Section 195 may be high unless CA certificate is obtained.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now