Capital gains on sale of residential property in india

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This query is : Resolved

nisha harchandani (Querist)

07 June 2012 hi
my cousin uncle has property in india which he wants to sell.wants to know the tax implication for him.
Some are telling tax will be applicable on sale consideration.
so will it be sale consideration or capital gain and whether there is anyway for tax saving in this transaction and also whether any tds is applicable or any form under section 197 is to be submitted for lower deduction or non deduction of tax.
kindly guide me...

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

08 June 2012 1. The sale of property is taxable under the head Income from Capital Gain.
2. Tax will @ 20% on capital gain.
3. Capital gain shall be computed as under:

Sale Consideration
Less: Expenses on transfer
Less: Cost of acquisition

If the asset is a long term capital asset, then Indexed cost of acquisition shall be reduced to arrive at the capital gain.

There is NO TDS applicable in this case.

nisha harchandani

nisha harchandani (Querist)

08 June 2012 Thanx,

Sorry I didn't mentioned that my uncle stay in aboard and sale of house property in India.

Kindly help in the NRI taxation and whether any TDS applicable in this matter.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

08 June 2012 Since the asset is located in India, the gains arising from the transfer of the asset are taxable in India.

nisha harchandani

nisha harchandani (Querist)

08 June 2012 hi
my cousin uncle is stay in aboard has property in india which he wants to sell.wants to know the tax implication for him.
Some are telling tax will be applicable on sale consideration.
so will it be sale consideration or capital gain and whether there is anyway for tax saving in this transaction and also whether any tds is applicable or any form under section 197 is to be submitted for lower deduction or non deduction of tax.
kindly guide me...