Tax and other implications on sale of property in India

Dear Sir,

You have to pay capital gain taxes on the profit earned from the said sale.

Please feel free to call/revert in case of any doubts

Thanks and regards

Abhishek Dugar

CA CS B.Com

Property is Situated in India. You have to pay Capital Gains Tax in India.

Also, if there is any Double Tax Avoidance Agreement (DTAA) between India and the Country where you are presently residing, then you will have to pay Tax at the rates prescribed in Indian Income Tax Act or the DTAA, whichever is beneficial to you.

Feel free to call back / revert for any clarifications.

Hello SIr,

What is the sale consideration ?

If it is above 50Lacs then TDS/ Withholding tax has to be deducted.

If less, then Capital Gain Tax shall be paid by you.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

hope your query is answered . For more info mail at modani005@gmail.com

no

Yes.

Hi, he can pay it in AED in Dubai.

However, since the Property is situated in India, it is advisable to receive the Payment in INR or by AED Wire Transfer to your Indian Account.

Hello Sir,

Yes, the transfer can be made.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Since the plot is situated in India we need to calculate capital gains tax.

Dear Sir,

As per the provisions of income tax act, if you have the holding period of the asset (Plot) of less than 3 years then it will be termed as "short term capital asset" and if the holding period is more than the 3 years then it will be termed as "long term capital asset".

If your holding period of the plot is more than 3 years then amount of capital gain will e calculates as follows:

Sale consideration : XXXXXXXX

Less: Indexed cost of aquisition: (XXXXX)

Less: Indexed cost of improvement: (XXXXX)

Balance: capital gain/capital loss

you are an NRI that will not affect the situation as you are accruing an income in India which will be taxed in India according to the Income Tax Act 1961 & rule made there under.

If you want to reduce your tax liability or get exemption under the income tax act 1961 then you can invest the entire sale consideration in any residential property in India.

Regards,

Yogesh Kumar