Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Sale of property by pio with foreign citizenship

511 views 1 replies

NRI_Foreign_citizen

30 Points Posted on 15 January 2014

I'm a person of Indian orgin who currently acquired citizenship of another county. I had sold a small piece of land in India which I got out of a court settlement over a family dispute. The sale proceeds was deposited in an NRI account in India. Do I need to pay Capital gain tax for this amount? If so, how do I pay Capital gains tax and how much would be the percentage?

I left India about three decades ago and do not know the proceedures there now to submit Capital gains tax. Someone in the USA told me that I need to use a particular Chalan to pay tax. Could somone explain the form number of the Chalan and how to pay Capital gains tax in India? Thank you.

Replies (1)

CA. CS. Khushboo Dodhia Vora

Practicing Charatered Accountant

125 Points Posted on 16 January 2014

Yes, you would be requried to pay capital gains tax. There is a special working of the gains you earned by selling property which involves cost price, sale price, stamp duty valuation, inflation effect on cost etc. Once the gains is calculated on the same, tax needs to be paid on the those gains @ 30% or 20% again depending on situations.

Challan 281 is used to make payment of capital gains tax.

It is adivisable to seek professional help as this is a little complex issue.

Regards

CA Khushboo Vora

khushboojdodhia @ gmail.com