Capital Gains Tax on Property

1. Tax  is payable @ 20% of the Capital Gain.

Capital Gain= Sale Price - Indexed Cost of Acquisition.

Cost of property is the cost at which your father had buy it but the benifit of indexation is available from the date at which it is transferred to you.

2. You can save tax by investing the money in house property in India u/s 54F of the Income TAx Act,1961.  You have to buy within 2 Years or can construct with in 3 years from date of sale

TAx benefit is proportionate to the amount saved.Eq:- if total capital Gain is Rs.5,00,000/- and the indexed cost is Rs. 15,00,000/- and you invested Rs.10,00,00/- then tax benifit will be equals to 500000/1500000*100000.= MRs.33,333/-.

Tax benifit is available only if you dont sell the new property in next 3 years.

3. no idea about UK laws. 

Well, i think taxability of the money in UK would depend upon the Double Taxation Avoidance Agreement between India and UK. I found this piece of info from the agreement posted on the net:-

"Except as provided in Article 8 (Air transport) and 9 (Shipping) of this

Convention, each Contracting State may tax capital gains in accordance with

the provisions of its domestic law."

Further, it says

"Indian tax payable under the laws of India shall be allowed as a credit against any United

Kingdom tax computed by reference to the same profits, income or

chargeable gains by reference to which the Indian tax is computed"

Hope this will help.

hi thomas,

    1.                     Tax is based on residential status. . For this A.Y u are a non- resident. . so only indian income is taxable to u. . As the property is situated in india surely u have to pay capital gain tax @ 20% Flat rate on the gain as it is an indian income.The calculations given by SONAM is correct. . in addition to that U Can claim exemption even u/s 54 and 54EC if the property is residential  house, other than residential house means u can claim u/s 54F and 54EC

2.                           It is the global accepted principal tat same income cannot be taxed twice. . So their is DTAA (Double Taxation avoidance agreement) between the countries. . The taxability is based on that DTAA Agreement between INDIA and USA.

you can take exemption if you investment nhai bonds 50 lakh and you  are purchases a new resident house you take exemption u/s 54

ltcg tax rate 20%

HAS ur intension is not to invest in india and transferring whole amount i think  u have to pay whole tax as per DTAA Agreement.