Income in NRO account is exempt from tax.
But if a nonresident purchase and sells a property in India, then what about arising LTCG in NRO account.
Is it taxable?if it is then at which rate?
What if it is STCG?
CA-AK (CA) (600 Points)
07 January 2015Income in NRO account is exempt from tax.
But if a nonresident purchase and sells a property in India, then what about arising LTCG in NRO account.
Is it taxable?if it is then at which rate?
What if it is STCG?
Raphael
(Chartered Accountant)
(214 Points)
Replied 08 January 2015
As per my knowledge any income from NRO account is taxable in India whereas any income from NRE is non-taxable as per 10(4)(ii).
Any capital gain arising from a property situated in India is taxable in India as per Sec 9. If the DTAA with any country allows any relaxation in this respect then a non-resodent can avail such relief. But as far as the DTAA that I have come across, no such clause have been mentioned.
Hope this helps you.
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