Tax on Capital Gain of NRI

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Pranav (Querist)

07 August 2017 Can anyone solve the below problem? Two NRI people jointly bought a house property on 02/01/2007 for Rs. 10,51,000. They sold the same on 12/04/2016 at for sale consideration of Rs. 35,00,000. Compute the Amount of tax liability of each person for A.Y 2017-18 assuming there is no other income.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

07 August 2017 Adjust the cost of inflation to arrive at the indexed cost of acquisition. You may find the cost inflation index for 2016-17 and 2006-07 in the income tax website. Then reduce the same from sales consideration to arrive at capital gains. Fully gains will be taxable as there is no basic exemption limit available for NRIs

Pranav

Pranav (Querist)

07 August 2017 Ok thanks... And do we get any benefits due to loan taken on the house, the repayment of which is completed on 21/01/2016?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

07 August 2017 No. Only Long term capital loss can be used for setting off long term capital gains. Therefore no benefit like interest repayment on loan is possible

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