Capital gains

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Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2018 A resident ( as per Income tax Act,1961) Indian citizen has a flat in Singapore
purchased five years back. He is selling it now. Can he index the cost of
acquisition. If there is capital gains, where he has to pay income tax
ie., in India or at Singapore. Kindly advise.

Shrinivas (CA, LLB, CISA)

Shrinivas (CA, LLB, CISA) (Expert)
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24 April 2018 Yes, for a resident and ordinary resident, sale of house property outside India will result in Capital Gains in India as the Global income is to be offered to tax in India.
Indexation benefit may be availed while filing the return of income in India.

In India, he has to pay tax based on the residential status and in Singapore he might have to pay tax based on the local laws of the land, as it is the place where the Capital asset is located. However, he may claim foreign tax credit based on the provisions of the India - Singapore Double Taxation Treaty.

Hope I have answered your question.

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Expert : Anonymous

Expert : Anonymous (Expert)

24 April 2018 Thank You for the Reply Sir... It's very clearly and Very Helpful... Thank You Once Again... 🙏🙏🙏🙏🙏

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