Clarification on Sale of Property by NRI

Q & A Forum › Category: Real Estate › Clarification on Sale of Property by NRI

kdesai asked 8 years ago

Is a 20% tax only on the long term capital gain or on the entire sale proceeds when a NRI sells a condo after 5 years of ownership?

2 Answers

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Sreekanth Staff answered 8 years ago

Hi, Only Long Term Capital Gains are taxed at 20%. When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years (reduced from the date of purchase) a TDS of 30% shall be applicable. Related articles : https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/

kdesai replied 8 years ago

Thank you very much, Sreekanth.

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Sreekanth Staff answered 8 years ago

Hi, Kindly consult a CA, in case you have to take benefit under DTAA. https://www.relakhs.com/double-taxation-avoidance-agreement/