Capital Gain Tax on Foreign Citizen

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This discussion addresses the capital gains tax implications for a foreign citizen selling Indian property inherited from parents. It covers the applicable tax rates for both indexation and non-indexation scenarios, as well as the TDS (Tax Deducted at Source) that the buyer must deduct. The advice highlights that the TDS amount depends on the chosen tax calculation method and suggests obtaining a lower tax deduction certificate if a lower TDS is desired. Seeking professional guidance is strongly recommended to avoid costly errors.

Hafiz

Hafiz (Querist)

06 February 2025 A Foreign citizen selling a property in India acquired by will of his parents. The total consideration will be around Rs. 1.75 crores. What will be the Income tax applicable to him on Capital Gains?

"Sale is happening after 23.07.2024"

What will be the TDS that to be deducted by the buyer against this deal?

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 February 2025 you can choose to claim indexation or not. the TDS shall depend upon which method you are choosing. If you want lower TDS, the seller can apply for Lower Tax deduction certificate.

Hafiz

Hafiz (Querist)

06 February 2025 Thanks
What will be the rate of capital gain tax under indexation and non indexation case?

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 February 2025 20 or 12.5. surcharge depends on the amount. Suggestion if you are not clear, make sure you have the right consultant handling this. Small mistakes in relation to TDS costs a lot.

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