I would like to have views from all experts on following scenario
-> Non resident individual selling the property after holding it for 25 years, does individual (female) needs to pay long term capital gain under section 112 (applicable for residents) or 115E (special provisions for NRI)?
-> What does 3% additional charge on the top of capital gains account for ?
The benefit of 115E is that NRI needs to pay 10% tax over 20% incase of residents, please advise if I have misunderstood the following law
https://law.incometaxindia.gov.in/DIT/intnrcount.aspx
Tax on investment income and long-term capital gains.
115E. Where the total income of an assessee, being a non-resident Indian, includes—
(a) any income from investment or income from long-term capital gains of an asset other than a specified asset;
(b) income by way of long-term capital gains,
the tax payable by him shall be the aggregate of—
(i) the amount of income-tax calculated on the income in respect of investment income referred to in clause (a), if any, included in the total income, at the rate of twenty per cent;
(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; and
(iii) the amount of income-tax with which he would have been chargeable had his total income been reduced by the amount of income referred to in clauses (a) and (b).]
CAclubindia
