Hello Friends this is Mayur Llodha from Locknkeys your Property Mitra !
We provide transparent & ethical real-estate advisory services in PUNE.
65% of NRI’s buy and eventually sell high end properties in India. This is a huge number. Even then some of the NRI’s aren’t aware of the Indian laws pertaining to taxation.
Here are the pointers to be kept in mind by an NRI while selling off his/her property in India:
- NRIs who sell property in India may be subject to tax deductions at source (TDS) under Section 195 of the Income Tax Act. The amount of TDS to be deducted will depend on the capital gains earned by the NRI from the sale of the property.
- If the property has been held for more than two years, it is considered a long-term capital asset; The TDS rate for long-term capital gains is 20% and additional charges of surcharge and cess, increase the effective tax rate to approximately 23%.
- If the property has been held for two years or less, it is considered a short-term capital asset, and TDS rate for short-term capital gains is 30%.
- NRIs may be eligible for certain tax exemptions and deductions under the Income Tax Act by investing the capital gains in a specified bond or another property, they may be able to avoid or defer paying taxes on the gains.
- It’s recommended that NRIs consult Property advisors like LocknKeys who handle end to end transaction covering all the parameters such as Price, Documentation, and Taxation etc.
