Lt cg on property

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THIYAGARAJAN SUBRAMANIAM IYER (Querist)
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18 May 2017 We as biological parents have transfereed the title of our flat (Purchased at Rs45 lakhs in 2009) in the name of our daughter in Dec 2012 through a registered deed of settlement She had in turn given us the General Power of Attorney to do several things on the flat including renting it and even selling it on her behalf The GPA was also registered duly Our daughter was an NRI since 2002 and settled in the USA with her husband and not employed in US too. She has a PAN but not returning any tax return being unemployed while in India before marriage and also in the USA after marriage The rental income since 2014 is hardly Rs11000 PM and as PoA holder I receive this in the joint account.She has become a US citizen in April 2016. Her Indian Passport has become invalid post her renouncing Indian Citizenship She wants to dispose this property now. Whether we the GPA holder sell the flat on behalf of our daughter and after paying LTCG tax of Rs3 lakhs (10% of Rs30 lakhs CG Rs75 lakhs less Rs45 lakhs being the cost incurred by us) using her PAN ,whether we /she can repatriate the balance proceeds to her US Bank account? Is the LTCG is Rs30 lakhs or is it Rs75 lakhs? ( being settled free in our daughter's favour without any consideration)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 May 2017 The long term capital gain is only 30 lacs. You have rightly calculated the tax payable of 3 lacs. Sale proceeds can be repatriated after filing 15CA and 15CB.

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