Tax on Sale of Property in case of NRI

Computation of Capital gains

WHERE CAPITAL gain arises to a non-resident from the transfer of a long-term capital asset, other than capital gain arising from the transfer of shares in, or debentures of, an Indian company, the benefit of indexation will not be available to the non-resident. (Second proviso to Section 48 read with Section 115D).

Therefore from the full value of consideration received or accruing as a result of the transfer of capital asset, the following amounts should be deducted to arrive at the amount of capital gains:

the cost of acquisition of the capital asset; (without indexation)

the cost of any improvement to the capital asset; (without indexation) and

the expenditure incurred wholly and exclusively in connection with the transfer of the capital asset, such as stamp duty, registration charges, legal fees, brokerage and so on.

Tax on long-term capital gains

Section 112 (c): In the case of a non-resident (not being a company) or a foreign company, long-term capital gains is chargeable at the rate of 20 per cent.

TDS on Capital gains tax

TDS on such capital gains tax has to be deducted as per Section 195 of the Income-tax Act, 1961.

Well the property is aquired by myself-a resident -and by my son a non resident. If we are selling such property after 3 years, how should we calculate the LTCG - is it with indexation or without. We have equvally invested while acquiring the property.