05 December 2017
SIR, MY CLIENT IS A NRI HE IS GOING TO SOLD A HOUSE PROPERTY SITUATED @ CHENNAI THE VALUE IS MORE THAN ONE CORE. THE BUYER IS GOING TO PAY IN INDIAN RUPEES ONLY. THE BUYER IS ALSO NRI. IN THIS CASE MY CLIENT IS WANTS TO PAY LONG TERM CAPITAL GAIN FOR SALE OF PROPERTY. KINDLY CONFIRM HOW MUCH HE WANT TO PAY TDS FOR THE A.Y.2018-19 ON BEFORE REGISTRATION. AND ALSO HOW MUCH HE WANT TO PAY LONG TERM CAPITAL GAIN FOR SALE OF HOUSE PROPERTY FOR THE A.Y.2018-19. THERE IS ANY SPECIAL EXEMPTION FOR NRI PEOPLE IN LONG TERM CAPITAL GAIN FOR SALE OF HOUSE PROPERTY .
Sale of Property in India by an NRI attracts Capital gain Tax in India. TDS should be deducted by the Buyer of property as per provisions of section 195 of IT Act @ 20% in case of Long Term Capital Gain. Tax on LTCG @ 20% will have to calculated by taking indexed cost of acquisition and indexed cost of improvement if any. There are no special exemptions for NRI on LTCG for sale of property in India, but NRIs are allowed to claim exemptions under section 54 and Section 54EC on long term capital gains from sale of property in India, if net proceeds from sale is invested in Residential House Property in India or Capital Gain Bonds.
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