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Capital gains on sale of property by nri in india

Tax queries 550 views 2 replies

Hello Sir,

I am an NRI having two joint flat purchased in year 1989 in mumbai having cost for Flat No.1 Rs. 7.75 Lakhs and Flat no.2 Rs.4.45 Lakhs. Both the Flats are joint Flats and there are two joint owners of Flats (Me & My Wife). I have sold both combined flats as a single unit for consideration of Rs.4.5 Crores (Agreement Value) in the year 2017. My queries related to these are as follows:

1. How do I calculate long term Capital Gains and where do i can invest the same amount (means whether I should purchase another property in India or any other investment that will be benificial for me)

2. Can I Transfer the full Consideration amount received in India to Canada, if yes, then whether it will effect my taxation under capital gains and how.  

3. What will be the rate on TDS on property for NRI if I sold same flat.

4. What are the documents that are to be given to Buyer for calculation of capital gains tax and same will be paid and TDS return will be filed by buyer on my behalf to Income Tax Department.

Please Guide me for the same.

 

Thank You.

Replies (2)

1. How do I calculate long term Capital Gains and where do i can invest the same amount (means whether I should purchase another property in India or any other investment that will be benificial for me)

Ans.: Capital gains over the property will be net sell receipts less indexed cost of the market value of the properties as on April,2001.

Any investment in a residential property within next 2 years will reduce the tax liability to that extent u/s. 54 of IT act.

2. Can I Transfer the full Consideration amount received in India to Canada, if yes, then whether it will effect my taxation under capital gains and how.  

Ans.: Only after payment of tax liability....... No saving on tax part.

3. What will be the rate on TDS on property for NRI if I sold same flat.

Ans. 20% plus cess

4. What are the documents that are to be given to Buyer for calculation of capital gains tax and same will be paid and TDS return will be filed by buyer on my behalf to Income Tax Department.

Unless any investment in property or capital gains bond....... no need to give any such documents...... as TDS will be flat 20.66% with PAN

Refer: real-estate/nri-tds-sale-property
 

Thanks you sir for your reply.


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