income liabilitiy

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MANOJ KUMAR JAIN (Querist)
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07 May 2010 Sir,

One of my NRI client want to remitt. his all sale consideration (Long term Capital Gain) recd. from sale of gifted house property to Foreign country for purchase a residential property.

Please clarify is it tax free or not, if taxable what rate ?

Thank

CA. M.K. Jain

Gajendra R. Tiwari

Gajendra R. Tiwari (Expert)
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07 May 2010 A non-resident's total income under section 5(2) of income tax act,1961 includes:

(i) income received or deemed to be received in India in the previous year; and

(ii) income which accrues or arises or is deemed to accrue or arise in India during the
previous year.

Hence, income is generated outside India cannot be taxed in India.