Capital gains on sale of a foreign property by a resident
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 January 2016
A resident ( as per income tax act ) of Belgium origin has transferred a house property to a person of Belgium. Money has been received in the bank account. So, in this case
1. Would the benefit of indexation be allowed ?
2. Income Tax act says that the capital gains should calculated in the same currency which was utilized in buying the house. So the capital gains are required to be calculated in Euros - the original currency ?
3. The act further says that the capital gains to be converted in INR as an average of telegraphic transfer rate - buying rate & selling rate as on the Specified Date of Transfer
So the specified date is the date of transfer by the seller of asset in this case or any other date ?
Kindly guide on the issues as mentioned above with a valid source if available.
Thank You.
1. Would the benefit of indexation be allowed ?
2. Income Tax act says that the capital gains should calculated in the same currency which was utilized in buying the house. So the capital gains are required to be calculated in Euros - the original currency ?
3. The act further says that the capital gains to be converted in INR as an average of telegraphic transfer rate - buying rate & selling rate as on the Specified Date of Transfer
So the specified date is the date of transfer by the seller of asset in this case or any other date ?
Kindly guide on the issues as mentioned above with a valid source if available.
Thank You.
19 January 2016
1 Indexation benefit allowed.
2 Capital gains are to be calculated in Euros.
3 The capital gains to be converted in to INR on TT buying rate prevailing on the last day of the month immediately preceding month in which transfer take place.
2 Capital gains are to be calculated in Euros.
3 The capital gains to be converted in to INR on TT buying rate prevailing on the last day of the month immediately preceding month in which transfer take place.
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