NRIs can remit up to $1 million from sale of property
NRIs can remit from their NRO account on production of documentary evidence of acquisition India’s Double Taxation Avoidance Agreements with Canada, Singapore do not offer any relief from capital gains tax arising from immovable property situated in India Sale of residential property in India will be taxable in the year of sale. Any immovable property held for more than 24 months is classified as a long-term capital asset (LTCA). In case of LTCA, taxable capital gain will be net sale proceeds less indexed cost of acquisition (i.e. adjusted as per the cost of inflation index or CII) less indexed cost of improvement. Long-term capital gain (LTCG) is taxable at 20% (plus applicable surcharge and education cess). In case of a short-term capital asset (held for up to 24 months), taxable capital gain will be net sale proceeds less cost of acquisition less cost of improvement. Short-term capital gain is taxable at applicable slab rates (plus applicable surcharge and education cess).
Tags : News/Views