I was an Indian citizen and now I am a UK citizen with an OCI (Overseas Citizen of India) card holder.
The land developer is offering me to buy back the plot at market price.nd not generating any income in India so paying nil tax in India for the past 5 years.
My parents purchased a 12,000 sq. ft. land plot in Bangalore in my name in 1990 and we didn't register it till now.
I have a land purchase letter from a land developer and now I am planning to sell the land plot.
Land developer is offering me to buy back the plot at market price.
I am seeking advice on the following questions:
1) The land plot was not declared in my income tax file (as it was not registered from 1990) while I was an Indian citizen so now how to show this plot sale amount when the sale amount arrives in my account?
2) I am advised by a few friends to buy land/property in India from the Bangalore plot sale amount within a year to avoid 30% tax to the government however I am unsure to invest in property right now in India so looking for advice on other options to invest beside land/property and avoid or minimize government tax and to avoid any regulatory rules violation.
3) Can I pull back the plot sale amount to the UK after paying the necessary local tax in India? If YES then how much tax applies to OCI card holders when I pull these amounts from India to the UK?
Any professional advice from a Chartered Accountant / Tax planner / Any experienced expert on my situation will be helpful.
CAclubindia
