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Income tax query

Shrenik Lagare (Free Lancer technical Consultant) (25 Points)

17 May 2016

my friend's son is in UK for last 10 years. He had purchased a flat in Pune for Rs.10,00,000/- in 2011. Now he is planning to sell this flat for Rs. 60,00,000/-. He wants to take Rs. 60,00,000/- to UK for purchasing a flat in UK. Is it possible to take this money to UK? What is income tax liability for this type of transaction ?

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2 Replies

CA k sumanth kumar (CA ) (42 Points)
Replied 17 May 2016

FEMA Provisions

The transactions falls within the definition of capital account transactions as per FEMA provisions. The transactions is permissible.

Income Tax Provisions

As per Income Tax provisions income arising in india to a person resident outside is taxable. such person has to pay tax in respect of income arised in india.

Conclusions

Hence your friends son can sell the property and take the receipts from such sale. However he has to file the income tax return for the FY in which sale is effected and capital gain tax has to be paid at the rate of 20%.