Query regarding Capital Gain Tax on sale of property by NRI

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  1. chirag shah

    chirag shah New Member

    Dear sir,
    I bought flat in 2010-2011 and total cost including registration, vat, service tax was 38.5 lacs. I have sold that same flat in 2014-2015 for 60 lacs. could you please tell me the capital gain tax need to be paid for the same in this financial year. Please note I am nri and holding nre/nro account here in india.
    Thanks in advance
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Indexed Cost of Acquisition = 38.50 * 1024/711 = 55.45 Lakhs
    Sale Price = 60 Lakhs

    Capital Gains = 60 - 55.45 = 4.55 Lakhs
     
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    The tax applicable on Capital Gains is 20%

    As you are a NRI, the buyer will have to deduct TDS @ 20% of 4.55 Lakhs and pay you the balance amount.

    However, to avoid such tax - you can also claim capital gains exemption by reinvesting the gains in another residential house under section 54 or specified bonds under section 54EC - http://www.charteredclub.com/section-54/
     
  4. chirag shah

    chirag shah New Member

    Dear sir,
    thanks for the prompt and clear reply. I actually bought this property in december'2009 and registration was done in sep'2010. So whether buying year will be 2009-10 or 2010-11 and I guess accordingly capital gain tax also will change. Please clarify.
    Thanks in advance,
    Chirag Shah
     
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    The date of Registration i.e. Sept 2010 would be considered
     
  6. chirag shah

    chirag shah New Member

    Thank you very much and appreciate prompt reply.
     
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