One of my NRI client want to remitt. his all sale consideration (Long term Capital Gain) recd. in India from sale of gifted house property to Foreign country for purchase a residential property in Foreign.
Please clarify is it tax free or not, if taxable what rate ?
07 May 2010
He has to pay his LTCG for the property sold in India... and than can remit the amount... no other deduction will be allowed as the property will be purchased outside India. No other tax than LTCG.
07 May 2010
Pl read the decision in Mrs. Prema P Shah Vs ITO (2006) 282 ITR (AT) 211 (Mum).Here the non-resident Indian sold property in India and purchased residential property in U.K and claimed deduction under section 54 of the Income tax Act,1961. Claim allowed.
CAclubindia
