- There are two critical aspects in your case, one is inheritance and other is your residential status i.e. NRI.
- In case of inheritance, period of holding and cost of acquisition (COA) in the hands of previous owner is considered. If the property is purchased before 01.04.2001 then compare the COA or FMV of the property as on 01.04.2001 and consider the cost whichever is higher. Apply Indexation to COA till the year of transfer of the property. The resultant value will be Indexed COA. Indexation is applied to give the benefit of inflation between the year of purchase and year of sale. Property sold after 2+ years is considered as long term capital asset otherwise short term. To get the FMV, get the valuation report from the registered valuer.
- In case of NRI, first of all disclose the NRI status the buyer. In case of NRI, TDS rate is 20%+surcharge (depending on sale consideration amount)+4% cess. TDS is deducted on the sale consideration value. To avoid higher deduction of tax, you can apply for NIL or lower tax deduction certificate. Obtain the proceeds in NRO account and then transfer to your foreign account after filing of Form 15CA.
For detailed discussion, please contact personally.