Property sale tds/cgt nri and non-nri

Tax queries 162 views 1 replies

I am planning to sell my flat in mumbai

Purchase price Rs 10 Lakh in year Sep-2000

Selling for Rs 80 Lakh year( Jan-2019)

Joint property Owners - Myself (NRI) and my Dad

When the property was purchased my Dad paid all the money towards it by Cheque, I did not contribute any money towards it.

I am aware of 20% TDS for myself (NRI) section 195

1) Can you help-..What is the most tax efficient way to sell the property?

2) is the 20% TDS for NRI applicable on the full amount of Rs 80 lakh or only 50% of the sale amount of Rs 40 lakh?

3) would gifting half of the property to my dad first and then selling then Dad sells the  property be a better option?

 

Replies (1)

as you have not paid any amount at the time of purchase, at the time of sale also dont take any amount in your name

you should act as coowner, and not beneficial owner, so I think you will not required to pay capital gain tax , 

but better to have legal (lawyer) and another experts openion,

if present transaction carried out TDS will be deducted on Capital gain amount only which pertains to you only, and there is a chapter XII-A of IT Act please refer 


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