Query from my NRI Client: Capital Gain tax on Property sale in India

Dear Readers of my Blog,
thought to share my brief email correspondence with my NRI client on the matter of his query of Capital Gain tax on property sale in india, sharing as it is:

Question:

On 10-Jan-2018, at 12:12 PM, arindam das wrote:

Hi Deepak

Happy new year ! hope you are well.

Can you pls advise your understanding of the long term capital gains tax rules for sale of property, should we decide to sell any of our India properties.

Thanks and regards

Arindam

My Reply:

Greetings Mr. Arindam, 

Happy new year to you, I am fine, thanks.

Reg. capital Gain tax on property: thanks for asking query to me although this question should be explained by CA OR LAWYER as this is legal /tax Related.

However still as we are into this business & come across such transactions so can share you my personal understanding of the same as follows:

Point 1) Capital gain tax is charged upon profit you make on any property.

Point 2) profit is calculated after indexing the property (your buying cost + indexing value -sale value)

Point 3)long term capital gain tax rate is 20% of profit.

Point 4) you can save this 20% tax fully by investing in govt. bond which has lock-in for 3 years & on maturity you will get your invested amount back with interest or you can invest again to buy property anywhere in India.

Apart from above, there is one more tax called TDS 1% to be paid of entire sale value which is assessed after you file IT return & refunded accordingly to you.

All above will be applicable only if you are having pan card & filling returns income tax return in India. 

Hope able to outline all points related to capital gain, suggest you to consult CA for specific detailed info. 

Thanks & Regards,
Deepak Sundrani,
The Guru Realty,
RERA CERTIFICATE NO. A52100002438

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