Capital gains of nri

Dear Sir/Madam,

A and B are sisters.  They inherit their mother's house property under a Will jointly.  A is resident in India.  B is a Non Resident.  They decided to sell their house property, so B executed a power of attorney in favour of A to sell the house property.  A sells the house property.  A wants to pay tax on the capital gains of her sister and remit 50% of her share abroad.  Since B does not have a PAN, can A club B's share as well in her computation of income and pay tax to the government and the remit 50% of the share to her sister who is in abroad?

What is the maximum amount A can remit to B as per the RBI guidelines?  B is in Singapore. 

 

Replies (1)

i thnk u r little confuse about concept of the assessee,

A and B both will liable to capital gain tax.

If b has no pan card then apply to that and paid capital gain tax.

the main problem is that if B is non resident but she holds any interest in indian property then she is deemded as assessee, section 22 (deemded assessee read with section 9(1).)

Suppose if A paid full amount of tax of B, then income tax department raise notice for non resident assessee and open his last 16 year's records.

It is advisable B should apply for PAN and file retun by pay capital gain tax.

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