Selling of an old property

Hello Sir,

You cannot keep the funds in a NRO Account. You will have to shift the funds into a Capital Gain Tax Saving Account till the time you buy another property.

Please not that the funds are to be transferred before the due date of filing of returns.

If your mother is also an NRI, then the buyer will have to deduct 20.6% as TDS. In case you do not want the TDS to be deducted then you may have to apply for a Lower Deduction Certificate to the Income tax authorities.

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

Hi

You will have to deposit the money in a Capital Gains Account Scheme and NOT in the NRO Account. Regarding the inflation index, the same has not yet been notified.

Regards

Keerthiga

M.Com., CA, LLB

Dear Sir,

Yeah, you can sale the property and invest in new residential house in India within 2 years from the date of sale. You will get the deduction of mount invested.

For capital gain calculation, if you sale the property after March 2017, you have to take the valuation of the property as on 01.04.2001 and then indexation will apply ( indexation is yet to publish).

Till that time, you have to keep that money in cgds account.

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

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Dear Sir,

If you purchase new property within 2 years from sale of property and also from the end of financial year you transfer the fund to Capital Gain Scheme account than no tax is payable.

- If you do not able to invest it for purchase of new home than the amount shall be taxable in the year with interest.

At the time of selling indexation benefit shall be available and only capital gain amount need to be invested in new property

The long term capital gains will be calculated separately for each asset and each person. The taxability also depends upon the ownership of the property devolving in the hands of the successors.

If you have sold two properties in the same financial year, the limits applicable for claiming exemptions u/s 54EC (for investment in Capital Gains bonds) will be Rs. 50 Lakhs. However, as you intend to buy new home, you can claim deduction u/s 54 or 54F, as the case may be, even you sell multiple properties, subject to fulfilment of conditions specified therein.

I suggest you should take professional help before and after sale of your properties.