AS the property is situated in India, the gains earned from selling this property would be taxable in India. I assume that the property was held by you for more than 2 years prior to sale. Now, in whose hands this gains would be taxable, depends on who is the real owner of the property. While the documents may have joint ownership, the question arises as to who has actually remitted the funds while purchasing. Where the funds are partially remitted by both, then tax may be computed partially and in both the hands and then the entire compliance to be done by both.
NRIs who sells purchased property after 2 years from the date of purchase will incur long term capital gains tax of 20 percent. The gains are calculated as the difference between sale value and indexed cost of purchase. Indexed cost of purchase is nothing but the cost of purchase adjusted to inflation. The capital gains can be exempt from tax if the NRI is planning to re-invest the capital gains of the property in another property in India or in tax exempt bonds.
The buyer of the property would be required to deduct tax from the sale consideration payable to you. Depending on the gains after considering Tax deducted by buyer, you should check your advance tax liability and discharge the same, if any. Further by July 2019 you should file your income-tax return in ITR 2 declaring this sale transaction. The income-tax return can be electronically uploaded by creating your user ID on the India income-tax web portal (https://www.incometaxindiaefiling.gov.in/home). TO avoid hassle, you may take assistance of any Local CA in India, it would not be a costly affair.
