December 17, 2021

Are you an NRI looking to sell his property in India? If yes, then these are the few things that you need to know.

Tax effect on sale of property in India for NRI’s

As you have a property/capital asset in India and you want to sell it and you need to understand the Income Tax effect arising due to this transaction

For NRI’s the Tax rate in case of short term capital gain is 30% and 20% in case of long term capital gains. However, they can do the tax planning with investing the gain amount as per prescribed methods under Section 54 of Income Tax Act, 1961.

What can be considered as Short term capital gain?

The gain arising from the sale of an asset held for 36 months or less are termed as short term capital gain. (Exception: Equity Funds are considered short term when held for 12 months or less)

What can be considered as long term capital gain?

The Gain arising from the sale of an asset held for more than 36 months are termed as long term capital gain.

From FY 2017-18 onwards – The criteria of 36 months have been reduced to 24 months in the case of immovable property being land, building, and house property.

If you are facing any issue with capital gain planning, Income tax compliance, TDS on sale/Purchase of property and looking for any Chartered Accountants in Bangalore the reach out to us.

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