Capital gains on nri

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2011 pls let me know if property is sold by nri and wants to reinvest in house property does he require clerance from department to open capital gain account. Is the buyer else liable to deduct the TDS if clearance is not taken from I.T dept tell me with refrence to section 195

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 August 2011 In my view clearance from department is not required in case of property transactions.

TDS provisions will also not apply in case of Capital Gains arising out of sale of a property.

The tax will be paid by the NRI by filing
his Return.

However, NRI can not purchase agriculture land without the permission of RBI.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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22 August 2011 pls let me know if property is sold by nri and wants to reinvest in house property does he require clearance from department to open capital gain account.

------------No clearance required.----------

Is the buyer else liable to deduct the TDS if clearance is not taken from I.T dept tell me with refrence to section 195 .

-------------Yes if Certificate from ITO or investment is not made in property then TDS is required to be deducted by the purchaser even if he is an individual.-------------------

Purchase of agricultural LAND doesn't qualify as exemption from Capital gains under Income Tax Act.

Anuj
+91-9810106211
femaquery@gmail.com

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