Hi, my brother is a NRI. He invested about Rs 6,00,000 in Real estate (Land) in India in FY2006-07. He sold that in FY2013-14 for about Rs 21,00,000 - a total gain of Rs 15,00,000. In 2011 he invested in an apartment in India worth Rs 70,00,000 (registered in 2011) taking a loan of Rs 50,00,000 and has been paying EMI since then.Given these sequence of transactions,I'm wondering if there's any capital gain tax consideration for the sale of land. I'm hoping that the capital gain from the sale of land could be offset against the investment made in the land, although I'm not sure if its applicable in this scenario. Any advice/suggestion in this regard will be very helpful.
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Capital gains consideration for nri
Replies (1)
You are incorrect!
You need to pay taxes on long lterm capital gain on Sale of Land at the rate of 20% under section 112.
However you can claim indexed cost acquition for the cost of assets
Since you are not eligible for claiming deduction under section 54F, as investment should be made within one year from the transfer of asset. BUT AS IN YOUR CASE YOU HAVE INVESTED BEFORE THE DATE OF TRANFER
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