Sale of Flat in Nalasopara, Mumbai, Maharashtra.

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This discussion details the sale of a flat in Nalasopara, Mumbai, purchased in 2003 and sold in 2020. It outlines the purchase and sale prices, various expenses including agency commission, society charges, maintenance, renovations, and travel. The seller, an NRI, seeks to understand the capital gains tax implications and the necessary procedures for declaring the sale and calculating tax payable based on the provided figures.

Dinesh Vachakkara Rajendran

Dinesh Vachakkara Rajendran (Querist)

14 December 2020 Flat bought in Yr. 2003 = Purchase Value 375,000 Rupees.
Flat Sales in Yr. 2020 = Sale Value 22,500,000 Rupees.
Agency commission - 2%
Society transfer charges shared by but=yer and seller in 2003 purchase = 12,500 INR
Society transfer charges shared by but=yer and seller in 2020 sales = 12,500 INR

Yearly Society maintenance Charges - last 17 years 825 INR per month * 204 Months =168,300 INR
Electricity and Water charges - 200 INR per month * 204 months = 40,800 INR
Renovation expenses - 200,000 INR
Inter State travelling expenses to check the flat condition yearly = 5,000 INR x 17 years = 85,000 INR.
Seller is residing and working abroad last 17 years since it was bought in 2003 and the flat was never occupied.

What would be the tax implications on the seller on the sale of this flat and what process need to be done?

Lekhraj sood

Lekhraj sood (Expert)

14 December 2020 No GST, You will have to compute capital gain tax.

Dinesh Vachakkara Rajendran

Dinesh Vachakkara Rajendran (Querist)

14 December 2020 Since I have NRI status, is it required to declare for this sale. If yes. what would be tax rate and tax payable based on above figures.

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