What are the tax implications for NRIs who want to sell a property in India?
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What are the tax implications for NRIs who want to sell a property in India?
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.
Can NRI claim TDS refund on property sale?
If NRIs file Income Tax Returns (ITR) after the financial year has ended in India, they can claim refunds on the deducted TDS. For an NRI to claim a refund on the TDS deducted, he/she must self-compute their income and tax liability according to existing slab rates.
How can NRI avoid TDS on property sale?
Reduce your TDS Liability by filing application in Form 13 To reduce the TDS on Sale of Property by NRI, the NRI is required to file an application in Form 13 with the Income Tax Department for issuance of Certificate for Nil/ Lower Deduction of TDS.
What is the TDS rate for NRI for sale of property?
TDS on sale of property by NRI in India
| Particulars | (A) Long-term capital gains tax | (C+D) Applicable TDS rate (incl surcharge + cess) |
|---|---|---|
| Sale price < Rs. 50 lakh | 20\% | 20.8\% |
| Sale price Rs. 50 lakh to Rs. 1 cr | 20\% | 22.8\% |
| More than Rs. 1 cr | 20\% | 23.92\% |
When an NRI sells property the buyer is liable to deduct TDS 20\%?
If an NRI is selling property in India, the buyer is required to deduct TDS at the rate of 20\% in case of long-term capital gains. However, if the property is sold before two years, TDS shall be deducted at the rate of 30\% as a short-term capital gains tax.
Do I have to report sale of foreign property to IRS?
Generally speaking, the purchase of property–foreign or domestic–does not need to be reported on your US expat taxes (unless there is a Homebuyer’s Credit in place for the related year). When a property is sold, however, the resulting gain or loss will need to be reported on Schedule D of the taxpayer’s US expat taxes.
Can a power of attorney change ownership of property in India?
To summarise, the law holds that a power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property but any genuine transaction carried out through General Power of Attorney is considered valid under the law.