Mom's Property sold after death, invested in foreign Country

Hi,

Have a question. This is the scenario.

Scenario: Have property that I gain from my mom ( about say 80 lakhs). After her death, i inherit the property as she has written her will in my name.

I sell the property for say 80 lakhs (in India)  and later would like to invest that money in a foreign country ( say  USA). Indian govt. currently allows investing upto $200,000 USD a year outside India.

Question: In the above scenario, can I avoid paying income tax on Capital gains from the 80 lakhs worth property sold in India ?

Sudhakar

Replies (2)

you can transfer the funds only after LTCG tax payment, as as on the date of sale u need clearance from incometax, so you can not avoid the LTCG tax

You need to pay tax on capial gain after indexation of your cost of acquisition.

Although I personally don't agree with the provisions of sec. 54 being used for buying house  property outside India, but there are certain case laws on the proposition favouring us.

 

Also FEMA allows to repatriate the sum so reecived on sale of property.

 

Anuj

+91-9810106211

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