InvestorQ : What are the tax implications for an NRI on the sale of property in India?
riya Ranade made post

What are the tax implications for an NRI on the sale of property in India?

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7 days ago
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NRIs selling house properties in India have to pay tax on the capital gains. The tax payable on the gains depends on whether it’s a short-term or a long-term capital gain. When a house property is sold, after a period of 2 years of ownership, it is considered a long-term capital gain. In case it is held for 2 years or less, it is considered a short-term capital gain.

Long-term capital gain is taxed at 20% and short-term gains shall be taxed at the applicable income tax slab rates for the total income taxable in India for the NRI. When an NRI sells the property, the buyer is liable to deduct TDS @ 20%. If the property has been sold before 2 years (reduced from the date of purchase), a TDS of 30% shall be applicable.

NRIs are allowed to claim exemptions from section 54 and Section 54EC on long-term capital gains from the sale of house property in India.
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