Capital gains in Real estate for NRI

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Mahesh zankar

self employed

23 Points Posted on 17 May 2011

HI,

I am have been a NRI for the past 10 years. I had purchased a property in 2005 through forex remittance. Now I have sold the property this year (2011). I would like to repatriate the funds to my current country of residence to purchase a property here. I believe that there is a total exemption on capital gains tax as I am reinvesting in another property as per a Citation 282 ITR 211 between Mrs. prema shah and Income tax officer. Is this true? If so i am assuming I should be able to repatriate all the funds without paying any taxes in India??? Pls help

Replies (3)

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

6092 Points Posted on 17 May 2011

There has been a contrary decision in tribunal . If I go by intention of legislature then it seems unlikely that government will give tax benifit for purchasing property outside India for capital gains gains arising in India . In my view it is really litigous to avail the benifit under sec. 54 in the similar cases.

Anuj

0-9810106211

Mahesh zankar

self employed

23 Points Posted on 21 May 2011

HI Anuj,

Thanks for the reply. I have been given advice to claim full exemption by my CA and infact he has mentioned the same in the Form 15CB from his side. Moreover when I filed my IT returns this year I have mentioned the sale and claimed exemption under sec.54. Its been over 3 weeks and I haven't heard anything from the IT dept. Do you think I will have a problem with RBI when transfering the funds??? YOur help will be deeply appreciated

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

6092 Points Posted on 21 May 2011

You will not hear so soon from IT dept.Wait till 1.5 years for any notice from Dept. RBI should not have a problem one form 15 CB has been given by CA.