House property

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sanchit aggarwal (Querist)
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01 December 2014 Capital gain tax payable by Non Resident on sale of house propertyMr A purchased a flat in December 2005 for Rs 50 lakh, his taxable status at time of purchase was ResidentMr A sold his flat in November 2014 for sale price of Rs 1.75 crore, selling price was higher than circle rate. His taxable status at time of sale was non resident. Purchaser deducted 1 TDS st time of purchase/ registration of propertyCost of inflation index in 2005/06 497Cost of inflation index in 2014/15 1024Queries1. Whether TDS rate is correct2. Whether capital gain exemption can be claimed by3. Mr A u/s 54 and 54F as NRI by investing in India4 Whether indexation cost benefit will be available to NRI5 What will be capital gain tax payable by Mr A

Amol S Joglekar

Amol S Joglekar (Expert)
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01 December 2014 As an NRI he gets the choice whether or not go by indexation.
If he selects to go by indexation, all the benefits are available....54, 54F

Capital gain = 1.75 crore - (50 lakh X 1024 /497) = 1.75 - 1.03 crore

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 December 2014 1. Tds rate for NRI is 20% on capital gain.
2. NRI can claim capital gain u/s 54 and 54F.
3. Indexation cost benefit is available to NRI.

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