regarding indexation

This query is : Resolved 

06 November 2010

Sir, Is indexation applies to non-resident when he sells a property in India?

CA.Madhusudan B.P. (Expert)
07 November 2010

The First Proviso to sec 48 - deals with capital gains from sale of shares by a non resident.Sec 48 read with sec 115AC & 115AD. In my opinion, the non resident should be getting the benefit as it is a sale of property.

07 November 2010

In my openion their is no specific provision in income tax act which prevent to a non resident to take the benefit of indexation in case of selling long term property.

Nikhil Kothari (Expert)
08 November 2010

Under Rule 115A, No indexation benefit shall be given for computation of Capital gains for Non-Residents in case of Transfer of Shares or Debentures of Indian Companies.

CA.Madhusudan B.P. (Expert)
08 November 2010

Nagendra pl correct me if my understainding is wrong when a non resident sells the immovable property in India.

If you sale any shares or debentures bonds etc., the provisions are clear that you will not be eligible to get the indexation benefit U/s 115AC & 115AD Also pl note that the non resident should file the return of income in India.

Lakshmi.PN (Expert)
09 November 2010

Sec. 115AC related to Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
Sec. 115AD related to Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

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