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LT capital gain & basic exemption
My son is a US citizen. Today He got Long term capital gain of 2 Lakhs from sale of immovable property. Is he required to pay tax @ 20%? even though It is less than the basic exemption of 2.50 lakhs . Of course ITR will be filed on his behalf by me, being P. O. A. holder.
Replies (4)
Quick Summary
Yes 20% tax is leivable
Yes, Long Term Capital gain is taxable at 20%. Since he is a NRI, he cannot avail the basic slab exemption benefit of Rs.250000/-. Hence, even though the LTCG is less than Rs.2,50,000 he has to pay tax at 20%. Indexation benefit is available to him, hence he can compute the LTCG by considering Indexed cost of acquisition. (If the transferred asset is shares/Bonds/Debentures, the case is different). If you want to avail exemption from paying tax, you can made investment in certain bonds u/s 54EC etc..
In my opinion basic exemption limit is available to NRI.
Pl check .
In my opinion basic exemption limit is available to NRI.
Pl check .
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