Exemption for NRI for income from Capital gains

Hi,

If an NRI has income ONLY from captial gains (selling Industrial land), will she (NRI woman) be eligible for standard exemption of Rs. 1,60,000?

Thanks!

Replies (6)

Dr.Jones

In your case the provisions of chapter XIIA of Income-tax act, 1961 will apply.

Best Wishes

Sathikonda

Sathikonda

Dr.Jones

In your case the provisions of chapter XIIA of Income-tax act, 1961 will apply.

Best Wishes

Sathikonda

Sathikonda

Thanks for the reply.

But what does that mean?

Dear Dr. Jones,

Whether exemption limit on Capital gain will be available to NRI's or not will depend upon the nature of Capital Gain -

Land shall be treated as Long term Capital Asset if its period of holding exceeds 36 months.

1) Short Term

a) U/s 111A - Sale of Shares on which STT has been paid - NO, Not Available

b) Others - Yes, limit will be available

2) Long term

No, limit will not be avialable.

Mr.Amir

Please through light on the provisions of chapter XIIA of income tax - Special Provisions relating to certain income of non-residents.

Best Wishes

Sathikonda

THE BENIFIT OF SETTING OF INCOME FROM CAPITAL GAIN FROM THE MAXIMUM EXEMPTION LIMIT IS ONLY APPLICABLE ON AN INDIAN CITIZEN . IT WILL NOT BE APPLICABLE ON A NR THEREFORE THE TAX WHICH NR WILL HAVE TO PAY WILL BE  .20 OF CAPITAL GAIN + .03 OF CAPITAL GAIN

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