LTCG tax for NRI

Dear You have to pay tax on Sale proceeds less index cost of acquisition of property.

and there is no other charges.

Dear Sir,

We would need to following information in order to calculate approximate capital gain amount

1. Purchase price of the apartment and brokerage paid on purchase, Registration cahrges, stamp duty etc.

2. Date of purchase (month and year)

3. Any major development cost incurred on property and date theorf

Further, buyer of your apartment is liable to deduct TDS on this transaction. Hence, he may deduct TDS on this.

You can save capital gain taxes by investing in some bonds for three years or investing in another residential property in India.

Please feel free to revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

There are two option for calculation of Tax liability

Option-1 Option 2

Sale proceeds 60,00,000.00 60,00,000.00

Less: Cost of acquisition

Amount 1300000 13,00,000.00

Date of Purchase Jul-05

(F.Y. 2005-06)

Index Value 2005-06 497

Index Value 2016-17 1125

Index Value cost of acquistion 29,42,655.94

(1300000*1125/497)

Long Term Capital Gain 30,57,344.06 47,00,000.00

Tat Rate 20% 10%

Tax 6,11,468.81 4,70,000.00

Now you may opt Option 2 in which only 470000 is the tax liability.

If your sale value is 60 lacs, then your capital gain would be around 30 lacs and tax amount would be approx 6 lacs.

Ideally the buyer should deduct TDS of 6 lacs and then you need not to pay any additional tax because buyer will deposit the TDS to the government.

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

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hello,

The Tax payable shall be 20% on the amount of Profits, on an approximate note it should be somewhere around Rs.6.5 - 7.5 Lacs.

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

Hello,

The approx tax payable in your case would be to the tune of Rs.7 Lacs which has to be deducted and paid by your buyer.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Approximately 6.00 Lakhs.

The index prevailing in July 2005 is 497. The index for the FY 2017-18 is not yet announced. The index for FY 2016-17 is 1125. Thus the appreciation in the property value is more than double. The indexed cost of acquisition is likely to be around Rs. 30 Lakhs. The LTCG is therefore likely to be Rs. 30 Lakhs, on which your tax liability will be 6.5 Lakhs.

The indexation has undergone change in the current financial year by taking 2001 as the base year. Hence, the indexed cost of acquisition may under go minor modifications.

Now you can invest in specified bonds u/s 54EC or specified mutual funds u/s 54EE and hold them for 3 years to save your tax liability. You can thereafter repatriate the money to Australia.